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Current Situation and Expectation of Optical Module Market

Current Situation and Expectation of Optical Module Market


Market Analysis of Optical Modules in 2019 (1)

——Current Situation and Expectation of Optical Module Market



In the fourth quarter of Q3 rolling in 2018, the total revenue of optical modules was $9.4 billion.

As you can see, revenue from dedicated optical network devices, such as Internet companies and data centers, doubled last year. Most of the high-speed (25G/100G/200G/400G) optical modules are used for special equipment, but because of price pressures, revenue increases are small. But the overall market is still optimistic. Operators deploy 5G access network on a large scale, and need huge bandwidth to support 5G applications, such as 4K video, VR/AR, Internet of Things applications, etc.


At the same time, we need to deploy edge data centers to achieve fast real-time access, and also need to increase a large number of access bandwidth. These factors will bring about the demand for high-speed optical modules.

2、Market Driving Force of Optical Module


Driving Force 1: Data Center

Internet companies such as Google, Facebook, Microsoft, Amazon and Apple have spawned emerging markets and technological innovations in optical modules. Telecom operators are also learning from the experience of Internet companies, gradually tending to this mode and ecology: data center architecture


Because of the change of ecosystem, whether in the traditional telecommunication market or in the emerging digital communication market (Internet market), one of the driving forces of optical module market and innovation comes from data center.

Driving Force 2:5G Network Construction and 5G Business

5G network and the digital transformation of other industries directly bring about the rapid growth of optical network and optical module market.

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