Product Code: 67025
The Optical Modulators Market was valued at USD 29.069 billion in 2019 and is expected to reach USD 49.563 billion by 2025, at a CAGR of 9.30% over the forecast period 2020 - 2025. Optical modulators form a pivotal aspect of information transmission, as the industrial revolution shifts to embrace data, to leverage information and data more than machines or agriculture as the basis for the global economy, the mechanisms of data centers become important. These devices are key components that have historically limited the ability of telecommunications, data communications, and data center networks to keep up with the seemingly endless flow of data in the form of voice calls, text messages, pictures, and video streaming that are being transmitted to a growing array of devices. Optical Modulators with high storage capacity to drive market growth. Optical Modulators vendors are introducing products with a high storage capacity specifically for applications that need to store large amounts of data such as action cameras, drones, and video surveillance systems. The trend of capturing high-definition pictures and video and the implementation of automation technologies across various sectors are driving the need for high-capacity optical modulators.
- The surge in data transmission by high-performance servers, computers, and network storage systems have generated a strong demand for optic fibers to guarantee smooth and accelerated the flow of data. Additionally, factors such as the fast growth of global internet traffic, the transition to FTTH, growth of smart cities, implementation of the Internet of Things (IoT), self-driving cars, increase in data center traffic across networks, telemedicine adoption, optical switch fabrics for communications and testing are fueling the need for optical modulators
- Also, with telecommunication companies increasingly preferring optical fibers, the requirement for optical modulators would subsequently increase. The scalability and extensive bandwidth capacity of optical modulators help in supporting a huge amount of data. With the growing use of these modulators in smart homes, various vendors have started offering optical modulators that can efficiently control and monitor a broad spectrum of applications such as access control, security, home monitoring, and home care in smart homes.
Scope of the Report
An optical modulator is a device or equipment which can be used for managing a property of light - often of an optical beam, e.g. a laser beam. Depending on which attribute of light is controlled, modulators are called phase modulators, intensity modulators, polarization modulators, spatial light modulators, etc. A broad range of optical modulators is used in different application areas, such as in optical fiber communication, for active Q switching or mode-locking of lasers, displays, and in optical metrology.
Key Market Trends
Optical Communication Drive the Optical Modulators Market
- Today's soaring demand for increasing the data transmission rate motivates a great challenge to improve the spectral efficiency of fiber-optical channels. In order to achieve higher spectral efficiency, exploiting an advanced coded modulation scheme is inevitable. This coupled with advances in the telecommunication industry have increased the adoption of optical modulators in Optical Communication. Optical fibres, conceived for fast communications on long distances, are developing also in manifold other industrial and commercial sectors, widening the applicative potentialities of photonic technologies.
- The widespread use of optical fibers in communications is boosted by the growing demand for higher performance and speed, forecast a brilliant future for the optical technology, also because optical fibres are the base for applications in several other applicative contexts. According to Wire Tech World, with 3 billion dollars in 2016, in 2021 the global market of cables, fibre sensors and connectors will reach about 5 billion, with an expectation of 9 billion within 2025, communications sector, ambits where optical fibres are then proposed for highly diversified applications.
- To support the requirement for faster data rates, superior switching techniques and more intelligent network architectures that can automatically adjust dynamically in response to traffic patterns and at the same time be cost-effective, optical modulators can paly substantial role. The trend is anticipated to continue in the future as breakthroughs already attained in the laboratory will be extended to practical deployment thereby leading to a new generation in fiber optics communications.
North America Accounts for the Highest Share of the Optical Modulators Market
- North America leads the market for optical modulator market. America adopted the changes in the field of telecommunication and space & defense through these modulators. Modern communication networks require high performance and scalable optic modulators that convert signals to optical signals at high speed. Existing lithium niobate modulators have excellent performance but are bulky and expensive to scale up. To overcome this problem many of the major companies started developing scalable and high-performance nanophotonic optic modulators.
- The availability and cost-effectiveness of 100 Gbps, and 400 Gbps devices drive the optical modulator market in the region. Moreover, next-generation optical modulator devices utilize less power, are less costly and are smarter and smaller. The adoption of the extensive use of the 100 Gbps devices, followed by 400 Gbps devices and the huge increases in Internet traffic in the region is core to helping control change in the large mega data center and communications interconnect and automobile navigation and infrastructure markets in the region.
- Thorlabs Inc. a market player in the American market launched Exulus reflective two dimensional spatial light modulator based on Liquid Crystal on Silicon (LCoS) technology. The Exulus provides high-resolution, high-speed phase modulation with minimal fluctuations, making it ideal for use in a wide range of applications such as optical trapping, beam steering and shaping, femtosecond pulse shaping, adaptive optics, display and imaging, and holography.
The Optical Modulator market is highly fragmented and consists of several major players. The leaders are focusing on innovation in technology and investment in research and development. Business strategies such as collaboration, joint venture, and mergers and acquisitions have allowed OMM firms to stay competitive in the market. Many organizations believe in upgrading their current portfolio to attract their customers.
- May 2019 - Thorlabs entered into a definitive purchase agreement to acquire Columbia-based Cirtemo, LLC. The acquisition includes two unique technologies: Multivariate Optical Elements for spectroscopic chemical analysis and Nanopatterning Tools known as MagAssemble, which were originally developed by MagAssemble, LLC and are used to "3D print" photolithography masks using nanoparticles. MagAssemble, LLC was recently consolidated with Cirtemo, LLC.
- December 2018 - Lumentum Holdings Inc. announced that it has completed its previously announced acquisition of Oclaro, Inc. The combined scale, resources, talent, and breadth of technologies will help accelerate innovation and the development of the products customers and network operators around the world.
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Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Rapid Growth of Global Internet Traffic and rising Number of Internet Users
- 4.3.2 Increase in Data Center Traffic Across Networks
- 4.4 Market Restraints
- 4.4.1 Design Related Limitations
- 4.5 Industry Attractiveness - Porter's Five Force Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Type
- 5.1.1 Amplitude Modulators
- 5.1.2 Polarization Modulators
- 5.1.3 Phase Modulators
- 5.1.4 Liquid Crystal Modulators
- 5.1.5 Analog Modulators
- 5.2 By Application
- 5.2.1 Optical Communication
- 5.2.2 Fibre Optic Sensors
- 5.2.3 Space & Defense
- 5.2.4 Industrial Systems
- 5.3 Geography
- 5.3.1 North America
- 5.3.2 Europe
- 5.3.3 Asia Pacific
- 5.3.4 Rest of the World
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Thorlabs Inc.
- 6.1.2 Lumentum Holdings Inc.
- 6.1.3 AA Opto-Electronic
- 6.1.4 Fujitsu Optical Components Limited
- 6.1.5 Gooch & Housego Plc.
- 6.1.6 IBM Corp.
- 6.1.7 Intel Corp.
- 6.1.8 Fujikura Ltd
- 6.1.9 Cisco Systems Inc.
- 6.1.10 Inrad Optics Inc
- 6.1.11 IPG Photonics
- 6.1.12 Lightwave Logic
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS