Optical Transmitters Market Demand and Insights by 2027

February 8, 2021

Information can be transmitted in various ways. An optical transmitter is one half of a communications system, where the other half would be an optical receiver. Producing an optical signal is the purpose of an optical transmitter.
Various other similar transmission methods use electrical signals, e.g. Ethernet or USB cables, or radio transmissions such as AM or FM radio. There are two categories of optical transmission: guided-wave or free-space, and unguided. Guided transmission media are cables such as twisted pair cables, coaxial cables, and fiber optic cables.
Fiber optic cable is the commonly used guided wave optical transmission systems. Under this system, light is transmitted through the fiber. The fiber uses total internal reflection to keep the light trapped inside.

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The optical transmitter market is primarily driven by the wide usage of optical transmission technology in remote controls of various electrical and electronic devices. Increase in adoption of optical communications is also driving the market.
Semiconductor optical transmitters are designed to be compact, efficient, and reliable to operate in an optimal wavelength range. They are directly modulated at high frequencies.
Optical transmitters are also used in the inter satellite communication that is also called free space communication (FSO)
They also offer significant advantages such as low weight and greater power savings, thereby enabling easier, faster, and reliable transmission of information. This provides immense opportunities for usage of optical transmitter systems in electronics and electrical devices.

The optical transmitters market is expanding significantly due to the increase in demand for higher bandwidth and high bit rate with the growth in penetration of Internet across the globe. The fiber optical technology is also advancing continuously.
Implementation of Fiber to x (FTTx) broadband in developing countries due to the rise in demand for broadband services and applications is estimated to boost the optical transmitter market
Government initiatives in developing countries and telecommunication deregulation across the globe are also likely to augment the demand for optical transmitters. Growth in the smartphones market and rise in demand for LTE and 4G services are also projected to propel the market in the near future.

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Telecom is estimated to be a rapidly growing end-use industry of the global optical transmitter market. Fiber optical communication network and optical transmitters are required for the transmission and receipt of signals.
In terms of revenue, the telecom industry has been expanding due to the rise in usage of optical transmitters, since optical transmitters are required for fiber optical communication. Demand for new information services, including data, Internet, and broadband services, is combined with the supply of innovative information technological equipment such as optical transmitters in order to transfer the information at a faster pace.
The current era of information technology is known as the ‘tera era’ in the telecom industry, as the demand for terabit-per-second information speed and terabyte information storage is high. This demand can be met with the use of technologically advanced optical transmitters, as these transmitters can provide faster and uninterrupted information transmission.
Thus, increase in demand for high speed information transmission in the telecom industry is expected to be a vital factor driving the global optical transmitter market

In terms of region, the global optical transmitters market can be divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
Asia Pacific is likely to witness the maximum demand for optical transmitters from 2019 to 2027. Major manufacturers of optical transmitters have been investing significantly in China, especially in the telecommunication components manufacturing sector in the country
Leading manufacturers of optical transmitters have extensive distribution networks along with deep product penetration. They have become increasingly international in their activities since the onset of globalization. Several manufacturers of optical transmitters have vertically integrated in the manufacture of optical transmitters.

The global optical transmitters market was highly fragmented in 2018. Key manufacturers operating in the global market are: