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Increasing Internet Traffic Drives Optical Modulators Market| Technavio
[May 18, 2018]

Increasing Internet Traffic Drives Optical Modulators Market| Technavio


The global optical modulators market is expected to grow at a CAGR of around 8% during the period 2018-2022, according to Technavio market research analysts. The migration from copper to optic fiber is a key factor driving the market's growth. Copper fiber uses electrical impulses to send information across long distances. This leads to large attenuations that cause distortion of data. Copper wires can easily be tapped, which can lead to security issues and challenges. Optic fibers are inexpensive, lightweight, non-flammable, and can carry higher bandwidths than copper wires. With the increasing adoption of optical fibers, the demand for optical modulators is also increasing as they are an integral part of the fiber optics network.

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Technavio has published a new market research report on the global optical modulators market from 20 ...

Technavio has published a new market research report on the global optical modulators market from 2018-2022. (Graphic: Business Wire)

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In this report, Technavio has highlighted the increase in Internet traffic as one of the key emerging trends in the global optical modulators market:

Increase in Internet traffic

When fiber optics technology is used for transmission of data, there is very low attenuation because it is not affected by electromagnetic interference. Fiber optics provide accessibility, agility, and high speeds. These basic provisions are required for data services such as video calling and online gaming. The massive explosion of data occurring because of advanced applications, faster network, and bandwidth-heavy media content has resulted in heavy Internet traffic. With the growing requirement for cloud computing and data warehousing, the traffic is expected to increase. Consequently, the increasing traffic is going to be a burden on the existing infrastructure.

"An important reason for the increasing Internet traffic is the growing number of smartphones in the market. Most people require mobile phones to support their online needs. With the arrival of 4G and the deployment of 5G by 2020, there will be more people going online, and this number is set to rise every year. The growing number of smartphone users will lead to a huge increase in the use of the Internet, which will lead to an increase in the Internet traffic. This growth rate will require the use of better infrastructure to support it, which will drive the need to develop networks that will be able to support high transmission speeds," says a senior analyst at Technavio for research on embedded systems.

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Global optical modulators market segmentation

This market research report segments the global optical modulators market into the following applications (telecommunications, data centers, and CATV) and key regions (the Americas, APAC, and EMEA).

In 2017, the optical modulators market was dominated by the telecommunications segment, which accounted for over 72% of the market share. This was owing to the fiber-optic aerial cables outside plants and fiber-optic links in underground cable installations around the world.

In 2017, the global optical modulators market was dominated by APAC that accounted for over 56% of the revenue share. APAC dominated the market due to the high consumption of optical modulators in countries such as China, where these are used in fiber-optic networks. APAC was followed by the Americas, where the US was the major revenue contributor.





 

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