With the development of optical communication industry and technological progress, the demand for bandwidth is constantly increasing. Communication equipment manufacturers and communication operators will continue to increase investment in optical communication networks and equipment. So as to promote the development of optical module industry. Optical module is in the middle of the industrial chain. The upstream of optical module industry is mainly optical device industry, integrated circuit chip industry and PCB industry. Downstream is mainly communication equipment manufacturers and communication operators.

The global optical module market has maintained stable growth. The global optical module market was $5.1 billion in 2016 and $3.1 billion in 2011. From 2011 to 2016, the market of optical modules has a compound annual growth rate of 11%. It is estimated that by 2020, the market size of 2016-2020 optical modules will reach 7.1 billion US dollars, with a compound growth rate of 9%. As can be seen from the figure below, the global optical module market has maintained stable growth.

Global market size of optical modules in 2011-2020

China's optical module market revenue in 2011 is only about US $950 million. In 2015, China's optical module market revenue has developed to US $1.62 billion, which shows that China's optical module market has gradually increased. t is estimated that by 2020, the market revenue of domestic optical modules will reach 2.68 billion US dollars. Its share in the global optical module market will also rise to 37.75%. It is estimated that the revenue of China's optical module market will reach 3.697 billion US dollars in 2023. In the future, China's optical module industry will show rapid development.

2019, the first year of 5G scale network construction in the world. 5G incremental capital expenditure began to increase, which led to the development of 100G high-speed optical module. According to relevant data, the market share of 100G optical modules will reach 26.2% in 2020.

Reviewing the growth history of foreign leading optical device companies is a history of M & A. The huge cost pressure and challenging market environment accelerate the integration of optical communication device manufacturers. Foreign manufacturers continue to expand the industrial chain through acquisition and merger, and successfully complete the transformation of technology and business. To make its products cover all links of the industrial chain of optical devices and optical modules. From passive to active, from chip to module, integration and rich product lines are what almost all leading manufacturers in the industry are doing.

At present, 5G network, super high speed interconnected data center and communication cloud emerge in endlessly. 5G (wireless access) and data center (Ethernet) will promote the development of optical module market on a larger scale.