As the Ministry of Industry and Information Technology issued 5G commercial licenses to China Telecom, China Mobile, China Unicom and China Radio and Television. 5G network over the next five years (fifth generation) mobile communication technology rapid development will become hot spot in the field of information and communication, bearing network construction and upgrade the first push light telecommunication network devices demand will continue to increase, at the same time, the era of cloud computing data center network demand explosive growth, domestic expansion of Internet companies, led by the BAT into IDC demand, The demand for high-speed optical modules such as 25 GBIT/s and 100 GBIT/s optical modules increases rapidly.

Factors that promote the rate upgrade of optical modules are as follows: On the one hand, the "Broadband China" strategy requires 100 Mbit/s optical fiber to be connected to homes, which increases the pressure of optical interfaces from the access layer to all levels of optical interfaces from bottom to top, promoting the demand for high-rate optical modules. With the deployment of 5G, operators need to deploy wider bandwidth for high-traffic data applications, such as telemedicide, VR, and 4K video. Therefore, mobile network layers must have higher rates, which also promotes the application of 25G SFP28 optical modules and 100G QSFP28 optical modules.

In addition to the huge demand for optical modules on carrier networks, the accelerated construction of cloud computing data centers requires 25G optical modules and 100G optical modules. In terms of traffic model, traditional data centers are oriented north-south (interactions between clients and servers), while cloud data centers are oriented east-west (exchanges between internal servers). From the technical point of view, the leaf-spine network architecture is introduced to improve the data transmission rate inside the data center.

Currently, 25G optical modules and 100G optical modules are commercially available in data centers and are expected to become mainstream applications in the future. From the perspective of the market, the total capital expenditure of the Top5 Internet service providers in the us is about 42 billion dollars, which is close to the capital expenditure of the Chinese operator market. Therefore, the demand for 100G optical modules brought about by the construction and transformation of the global data center network will be large in scale, and the high-speed optical module market will remain prosperous.

In the 4G network era, optical modules benefit from operators' optical network upgrade, cloud computing data center demand explosion and data center all-optical demand growth trend, especially 10G optical modules. In the 5G network era, 25G optical modules and 100G optical modules will continue to grow due to application demand.