Optical module welcomes the explosion! Optical communication core base, fully organized faucet

Tech 2023-07-01 00:21:05 Source: Network

The Optical module is a device for photoelectric signal conversion and transmission. As an important part of data transmission, it is an indispensable technical base for optical communication and plays the role of communication cornerstone

The Optical module is a device for photoelectric signal conversion and transmission. As an important part of data transmission, it is an indispensable technical base for optical communication and plays the role of communication cornerstone.

With the implementation of application scenarios such as artificial intelligence and intelligent driving, the demand for computing power and data traffic is accelerating, and the construction of data centers will accelerate. Driven by high data rate module applications, large cloud services and national telecom operators, the Optical module market will enter a new growth cycle.

Overlapping the continuous upgrading of downstream data communication and telecom applications, telecom operators and cloud manufacturers started a new round of capital expenditure cycle, and the demand for Optical module capacity and technical difficulty continued to increase. The mainstream capacity has reached 100G, 400G and 800G are in the process of deployment.

According to Yole's prediction, the revenue generated by the optical module market is expected to reach US $20.9 billion in 2026, showing a trend of both volume and price rising# Optical module#

Global Optical module market space forecast (unit: billion dollars):

Source: Yole

Overview of Optical module industry

Optical communication empowers thousands of industries, and the market prospects are very broad.

According to industry research database data, the optical communication industry chain is mainly divided into two categories of products: one is optical communication equipment, modules, and devices, and the other is the fiber optic cables that the company mainly engages in.

Among them, fiber optic cables play a role in signal transmission in optical communication networks, while optical communication equipment and modules mainly play a role in signal reception, transmission, and processing# Optical communication#

The Optical module is the core component to complete the photoelectric conversion in the optical communication system, which is composed of optical devices, functional circuits and optical interfaces.

Among them, optical devices are the key components of the Optical module, including optical emission components (including lasers) and optical receiving components (including photodetectors), which respectively realize the function of Optical module to convert electrical signals into optical signals at the transmitting end and optical signals into electrical signals at the receiving end.

Optical module can be classified according to transmission rate, multiplexing technology, applicable optical fiber type and packaging form.

The model name of Optical module is generally: transmission speed+wavelength+transmission distance+single mode/multi-mode+package type.

Classified by transmission rate, it can be divided into 10Gb/s, 25Gb/s, 40Gb/s, 100Gb/s, 200Gb/s, 400Gb/s, etc. The higher the transmission rate, the higher the technical difficulty.

According to the classification of multiplexing technology, it can be divided into time division multiplexing system and Wavelength-division multiplexing system.

According to the type of fiber, it can be divided into single mode fiber and multimode fiber. Single mode fiber is suitable for remote communication, while multimode fiber is suitable for short distance communication.

According to the packaging form, it can be divided into SFP, SFP+, SFP28, QSFP+, QSFP28, and QSFP-DD.

Structure diagram of Optical module:

Source: White Paper of 5G Bearing Optical module

In order to meet the multi-source protocols of the industry Standards organization, the packaging forms of Optical module are diversified. SFP represents the packaging type of Optical module below 10G, SFP+and XFP represent the packaging type of 10G Optical module, SFP28 represents the packaging type of 25G/32G Optical module, QSFP+represents 40G/56G Optical module, and QSFP28 represents the packaging type of 100G Optical module.

Classification of Optical module:

According to Lightcounting data, it is estimated that after 2022, although 100G Optical module will still be the mainstream model in demand, with the continuous increase of capital expenditure of overseas cloud manufacturers, 200G/400G/800G silicon Optical module is expected to continue to carry out industry iteration, and the high-speed Optical module shipments may increase significantly.

Optical module industry chain

The upstream of Optical module includes optical chips, optical devices, electrical chips, etc. There are many suppliers in the optical device industry, but the high-end optical devices are still mainly provided by foreign suppliers# Optical chip#

The downstream of the Optical module industry mainly includes telecom operators, Internet and cloud computing enterprises, etc. The operation fields of Optical module products cover Internet services, telecommunications market and other industries.

To search for industry data, use line search: line search | industry research database

Optical module industry chain

Source: Sullivan, Xingxingcha

Market pattern of Optical module

According to Yole data, the global Optical module market is relatively fragmented. American enterprises occupy about 45% of the market, Chinese optical module manufacturers occupy more than 40% of the global market, and Japanese enterprises occupy about 8% of the market. The market competition is fierce, and the overall market concentration is low.

Major foreign enterprises in the Optical module industry include Finisar (acquired by II-VI), Molex and AOI, etc.

China's optical module manufacturers have risen rapidly in the past decade and have occupied a major share in the world.

According to LightCounting statistics, from 2010 to 2022, among the top ten Optical module manufacturers in the world, Chinese enterprises will grow from one to six. Zhongji Xuchuang (mainly based on telecommunications), Guangxun Technology (mainly based on data communication), New Yisheng (telecommunications+data communication market), Huawei, Hisense Broadband, and Huagong Zhengyuan rank among the top in terms of market share. Manufacturers such as Hongteng Technology, Cambridge Technology, Bochuang Technology, and Taichenguang have a certain market share.

The market share of optical module manufacturers in China exceeds 40%:

Source of data; "Top 100 Most Competitive Enterprises of China Optical Communications", China Galaxy Securities, bank check

With the development of technology, the R&D and production expansion threshold of the Optical module industry has been continuously improved. Advanced technologies in all links of the industrial chain have been obtained through acquisition and other means, and the concentration and scale competitiveness advantages have been continuously improved. Many manufacturers have conducted mergers and acquisitions.

Acquisition and merger of Optical module manufacturers:

Source: Optical Communication Home, Xingxingcha

Since entering the 400G era, the global Optical module market competition pattern has changed significantly.

In the high-end Optical module market of Datacom, new products of domestic manufacturers were rapidly launched, and the gap between the certification speed of domestic manufacturers and overseas leading manufacturers was significantly narrowed, and they successively entered the upstream supply chain of major customers. The domestic second tier manufacturers led the change in the pattern.

With the rapid catching up of domestic Optical module manufacturers, compared with overseas Optical module manufacturers, their cost advantages continue to increase, and overseas cloud service providers have greater motivation to cultivate domestic second tier manufacturers that can catch up technically and have more room for cost reduction.

In terms of policies, in recent years, China has issued a series of policies to support the development of the Optical module industry, including increasing the national support for research and development funds for common key technologies of optoelectronic chips, rapidly improving the localization rate of core devices and cultivating large enterprises with international competitiveness. At the same time, relevant government departments have vigorously supported the reconstruction of 5G networks and the upgrading of data centers, increasing the market demand for Optical module.

In the long run, as the Moore's Law of Light approaches its limit, advanced packaging technologies such as silicon optical technology and CPO are expected to become the main focus of industrial competition in the future. The speed of product iteration, forward-looking technology layout and downstream customer resources will become the key to the further success of Optical module companies in the future.

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