(1) Optical module
The optical module is the core component of optical communication equipment and one of the fundamental building blocks of the physical layer in optical communication systems. The optical module is mainly composed of optical components (optical transmitter, optical receiver), functional circuits, and optical interfaces. The optical communication system undergoes two signal conversions during information transmission. The transmitting end converts the electrical signal into an optical signal through a laser, which is then transmitted through an optical fiber to the receiving end. The receiving end then converts the optical signal back into an electrical signal through a detector. The signal transmission process of optical communication system is as follows:
The main function of an optical module is to achieve the conversion between optical signals and electrical signals in optical communication. Its structure is as follows:
Source: White Paper on 5G Bearer Optical Modules
The downstream fields of optical modules mainly include the telecommunications market and the data communication market. The demand in the telecommunications field is mainly influenced by the iteration of communication technology. The upgrading and iteration of communication technology requires the construction of a new generation of network infrastructure, which will drive the growth of market demand for optical modules. For example, in 5G optical communication systems, the cost of optical modules in system equipment can reach 50% -70%. The construction of 5G base stations brings incremental demand for forward, intermediate, and return optical modules. For the data communication market, its demand is mainly driven by the growth of global data traffic and the construction of Internet manufacturers' data centers. It is obviously affected by the capital expenditure of Internet manufacturers. In recent years, the growth momentum is strong.
According to LightCounting's forecast, the global market size of optical modules is expected to maintain a growth rate of 22% CAGR from 2024 to 2029, and is expected to exceed 37 billion US dollars by 2029; From the perspective of the Chinese market, the size of the Chinese optical module market is expected to reach around 60.6 billion yuan in 2024, and is projected to reach 67 billion yuan by 2025. With the development of A1 and data centers, the continuous expansion of the fiber optic access market, the promotion of 5G technology, and the development of emerging industries driving the development of the optical communication market, all contribute to the explosive growth of the optical module industry.
In the future, with the rapid development of global cloud computing and AI, it is expected that data traffic will experience explosive growth. According to LightCounting's prediction, the market share of digital optical modules will increase from 55% in 2020 to 77% in 2026. The data communication market will become the main driving force for the development of the optical module market.
(2) Optical components
Optical devices refer to various components and equipment used for transmitting, receiving, modulating, amplifying, splitting, measuring, and detecting light. Optical devices are the foundation of the optical communication industry, and their performance dominates the upgrading and replacement of optical communication networks.
According to whether an external power source is needed to drive, optical devices can be further divided into passive optical devices and active optical devices. Optically active devices require external energy input, such as electronic excitation, current drive, etc., to provide energy supply. They have the ability to emit and amplify optical signals, generate and modulate optical signals, and play a role in signal enhancement and regulation. They are key components that make up optical modules; Passive optical devices do not require external energy input, and the energy required for their operation comes from the optical signal itself. They are mainly used to achieve basic functions such as transmission, distribution, and modulation of optical signals. The common categories of optical devices are as follows:
