At present, 4G Long-Term Evolution (LTE) base stations mainly use 10G optical modules, while 5G network deployment, especially in front-end transmission, 25G optical modules have become the first choice. As the fifth generation of mobile communication technology, the advent of the 5G era has brought the 25G optical module market to a new peak of development.

The 4G network is mainly composed of three parts, namely EPC (core network), BBU (baseband processing unit) and RRU (radio remote unit). In the 5G network architecture, it divides the original 4G BBU into CU (Centralized Unit) and DU (Distributed Unit), making full use of the advantages of virtualization and centralized control of base station deployment. At the same time, the 5G network combines the physical layer functions of the radio frequency part and the baseband part of the 4G network with the antenna part to form a multifunctional AAU. Therefore, the existing 4G infrastructure only covers fronthaul and backhaul, while the upgraded 5G network infrastructure adds midhaul to 4G.

In the 5G network, the CU and DU separated from the BBU structure will increase the overall demand for optical modules in the 5G era, which is expected to reach 1.8 times that in the 4G era. Lightcounting's market report pointed out that in the past few years, with the unprecedented expansion of the wireless front-end market, the demand for 25G optical modules has skyrocketed. By 2020, 25G and 100G optical transceivers are ready for mainstream deployment in order to keep up with the rapid pace of 5G commercial services and applications. By then, the demand for 25G optical modules is expected to reach 1 million, while the market demand for 40G optical modules will gradually decline. It is expected that by 2021, major operators will make active preparations for infrastructure and systems, thereby promoting the transformation from 4G to 5G. By then, the demand for 25G optical modules is expected to reach 2 million. In the future, the demand for 25G optical modules in data centers, wireless networks, access networks and transmission networks will rise to a new critical point.