ELECTRO-ABSORPTION MODULATOR MARKET ANALYSIS

Market Challenges And Opportunities

Factors driving growth of the global electro-absorption modulator market:

Due to the transmission capacity of several gigahertz, absorptions modulator can be used for optical fiber communication. Increasing demand for optical fiber communication in the telecommunication industry is expected to drive growth of the global electro absorptive modulator market over the forecast period 2019-2027. According to Coherent Market Insights’ analysis, the global fiber optics market was valued for US$ 4.63 Bn in 2018 and it is expected to reach US$ 8.56 Bn by 2027. Thus, increasing demand for fiber optic for data transmission in the telecommunication industry is expected to drive the global electro-absorptive modulator market in the forecast period 2019-2027.

Moreover, electro-absorption modulator can be combined with distributed feedback laser diode on single chip to use as data transmitter in the form of a photonic integrated circuit. Increasing demand for photonic integrated circuits is expected to drive the global electro absorptive modulator market growth in the forecast period. According to Coherent Market Insights’ analysis, global photonic Integrated Circuit (IC) market was valued US$ 372.32 million in 2016 and is expected to reach US$ 2497.23 million by 2023 exhibiting a CAGR of 32.2% from 2016 to 2023.

Apart from commercial use, electro-absorptive modulator is significantly used in research industries. For instance, electro-absorptive modulator is used for vertical-cavity surface-emitting laser (VCSEL) for high frequency laser operations. According to Coherent Market Insights’ analysis, the Vertical Cavity Surface Emitting Laser (VCSEL) market is expected to register a CAGR over 19.6% over the forecast period (2019 - 2027). Thus, increasing demand from research industries is expected to create lucrative growth opportunities for key players in the market.

Market Drivers

Restraints