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The global optical modulator materials market size is estimated to grow by USD 10,328.85 million between 2022 and 2027 at a CAGR of 7.84% .
Telecommunication networks are majorly driving market growth. Cellular communication technologies have evolved beyond basic voice and data transfer, and new technologies like 5G are likely to support edge computing. 5G has low latency, high capacity, fast speeds, and high bandwidth, which solve network connectivity issues for technology-based devices. Telecom operators, device manufacturers, and government bodies are investing heavily in upgrading the telecom network infrastructure, with 5G already being tested in various countries. With improved performance and reduced energy consumption, 5G will enable large-scale, high-bandwidth IoT deployments, which will require efficient communication devices. The demand for advanced optical components, including optical modulators, is expected to increase during the forecast period. The rise in data traffic due to IoT devices, big data analytics, and online content consumption will increase the need for high-speed and high-bandwidth networks, leading to the growth of the optical modulators material market.
This report extensively covers market segmentation by type (fiber-coupled optical modulators materials and free-space optical modulators materials), application (telecommunications, data centers, CATV, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Additional factors such as an increasing number of data centers, and an increasing number of FTTH homes and subscribers.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Optical Modulators Materials Market Driver
The increasing number of FTTH homes and subscribers is notably driving the market growth. In fiber to the home (FTTH), an optical fiber network, which enables high-speed internet access along with faster video and voice services, is installed and connected from a central point to individual buildings, homes, and offices. With the increasing need for faster Internet, the demand for fiber optics is also rising. FTTH offers end-users higher bandwidth, which will support video, voice, and robust Internet services.
The above-mentioned examples show that there is significant demand for FTTH connections. More customers are expected to opt for fiber optic connections for broadband services, which will reduce the need for customer premises equipment (CPE) and distribution point unit (DPU) devices, as fiber optic cables offer higher Internet speeds. This is expected to drive the demand for optical modulators, which, in turn, will drive the growth of the market during the forecast period.
Significant Optical Modulators Materials Market Trend
The development of high-speed optical fibers is the key trend in the market. Increasing demand for high-speed Internet has led to the adoption of high-capacity optical fibers. Data transmission has evolved in terms of speed and capacity. These optical fibres are bundled together to achieve higher transmission capacity.
Thus, with an increasing need for optical fibre components, such as optical modulators, several market participants are working in collaboration to release products and solutions to develop the ecosystem of high-speed optical network technology. Thus, the increasing adoption of high-speed fiber optics will lead to higher demand for optical modulators, which will subsequently spur the demand for optical modulator materials during the forecast period.
Major Optical Modulators Materials Market Challenge
Limitations of optical fibers and the optical modulator is the major challenge impeding the market growth. In general, copper cabling has been widely used in the deployment of network infrastructure to provide Internet connectivity to homes, enterprises, and other end-users. Traditionally, copper cable lines are used for communication purposes. However, the data transfer speed of copper cables is less than that of fiber optics. However, replacing copper cables with fiber optics is an expensive and time-consuming process.
As a result, companies are focusing on using G. Fast chipsets that can be installed in DPU and CPE devices, making use of the existing copper cabling. Thus, instead of laying fiber optic cables, the data capacity of the existing copper cables can be increased using G. Fast chipsets. This further hinders the adoption of optical fiber communication and impacts the growth of the global optical modulators and the global optical modulators material market.
Key Optical Modulators Materials Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Optical Modulators Materials Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Otto Chemie Pvt. Ltd. - The company offers optical modulator solutions such as high performance X ray crystals. The company is engaged in the production of chemicals, speciality, research and fine chemicals, solvents, crystal optics and nanotechnology products.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the fiber-coupled optical modulator material segment will be significant during the forecast period. Fiber-coupled optical modulators are ideal for amplitude or phase modulation of laser light. The increasing development of laser technology and the increasing need for frequency stabilization of laser devices are extraordinary factors for the growth of the market.
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The fiber-coupled optical modulator material segment was valued at USD 12,709.47 million in 2017 and continued to grow until 2021. The increasing use of electro-optical modulators in research and development, the rapid growth of Internet traffic, and the increasing attraction of the population to the Internet are boosting the global market. A modulator plays a very important role in fiber-optic networks; an electro-optical modulator acts as a switch for optical signals. This is due to its ability to meet the rapidly growing demand for higher bandwidth technologies using energy efficient, high speed, small footprint optical networks on a chip and cost efficiency. Such factors will boost the growth of the segment as well as the global market during the forecast period.
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APAC is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In 2022, APAC was the largest geographical segment of the global optical modulator material market. Growing demand for optical modulators from CATV, telecommunication, and data center applications is expected to drive the use of optical modulator materials during the forecast period. Industries such as telecommunications and digital media have witnessed a surge in their customer base in APAC, mainly due to the growing Internet penetration in the region. Furthermore, the increase in the number of small and medium-sized enterprises (SMEs) and start-ups is driving the digital network in APAC. Telecommunication service providers are also working on developing network infrastructure for new data centres in the region.
The increasing investments and developments by colocation service providers and hyperscale to boost their computing capacities in the region are primarily driving the growth of the market in APAC. In addition, the demand for higher bandwidth from industries such as manufacturing, healthcare, energy, and utilities will drive the number of data centres in the region during the forecast period. APAC is one of the major growth regions for data centers.
The outbreak of COVID-19 led to the imposition of complete lockdowns in the region. However, the initiation of vaccination drives led to the lifting of lockdowns and the resumption of manufacturing activities, including the manufacturing of optical modulator material in APAC. Thus, the regional optical modulator material market is expected to grow during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Optical Modulators Materials Market Scope |
|
Report Coverage |
Details |
Page number |
156 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.84% |
Market growth 2023-2027 |
USD 10,328.85 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.6 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 42% |
Key countries |
US, Japan, China, Taiwan, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bluebean Optical Tech Ltd., Caston Inc., Claser Photonics Inc., Core Optronics Co. Ltd., Cristal Laser SA, Crystech Inc., Dayoptics Inc., EKSMA Optics, Fabrinet, Fuzhou Hundreds Optics Inc., Fuzhou Farview Optics Co. Ltd., Gamdan Optics Inc., HC Photonics Corp., II-VI Inc., Inrad Optics Inc., Laseroptik GmbH, Otto Chemie Pvt. Ltd., Raicol Crystals Ltd., Gooch and Housego Plc, and Edmund Optics Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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