Market Trends of Optical Modulators Industry
Optical Communication to Hold Significant Market Share
- Optical communication is any type of communication in which light is used to carry the signal to the remote end instead of an electrical current. Optical communication relies on optical fibers to carry signals to their destinations. A modulator/demodulator, a transmitter/receiver, a light signal, and a transparent channel are the building blocks of the optical communications system.
- The demand for bandwidth and telecommunication services has surged over the past decade, which has boosted the requirement for external modulation in fiber-optic communication systems. Notably, integrating lithium niobate (LiNbO3) external modulators is evolving as a suitable solution that offers not just the desired bandwidth but also the means for minimizing dispersion effects.
- Compared to direct modulation of a laser diode, LiNbO3-guided wave modulators can be designed for zero-chirp or adjustable-chirp operation that aids in minimizing the system degradation associated with fiber dispersion. In analog systems, linearized external modulators can provide very low modulation distortion.
- The demand for optical fiber is imperative for economic development and the need for increased fiber density to support the advancements in bandwidth that are necessary to improve the pace of innovation and economic growth. One such example is the advancements in 5G and its dependency on high-speed radio frequency and greater network densification. Thus, such factors are driving the demand for investments in optical fiber infrastructure.
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North America to Hold the Largest Market Share
- The region's market is anticipated to be significantly impacted by the rising demand for high bandwidth and high data rate applications, the requirement for electronic device miniaturization, rising internet penetration, and the quick development of 5G infrastructure.
- The widespread use of optical fibers in the region's communications industry is boosted by the growing demand for higher performance and speed, portending a promising future for optical technology. This is anticipated to lead to a new generation of fiber optic communications as extensive research activities continue and are extended to practical deployment.
- The growing use of optical communication systems in data centers and high-performance computing (HPC) applications is another factor driving the market. Due to their high bandwidth and data rate requirements, data centers and high-performance computing applications are predicted to drive the demand for optical modulators. Additionally, the demand for optical modulators is anticipated to increase significantly in the area due to rising investments in constructing data centers and HPC applications.
- Cloud-based enterprise applications are thriving in the North American region. Cloud-based solutions depend on internet connectivity to function in the hosted environment. With 5G enabling much faster internet speed, it will further enhance the connectivity experience. Furthermore, the rapid growth of mobile broadband with an increase in big data analytics and cloud computing drives the demand for new data center infrastructures in the North American region. The rapid investments in cloud-based data centers are expected to provide several application opportunities for optical modulator makers.
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