Optical isolator: Key market research findings
- Growing demand for HD video transmission fuels market growth
- Telecommunications sector accounts for a majority of the market’s revenue
- Key vendors – AC Photonics, AFW Technologies, Agiltron, Aistana, Corning, DK Photonics Technology, Fiber Optic Communications, General Photonics, Opto-Link, Thorlabs, and SENKO Advanced Components
The industry specialists at Technavio predict the global market for optical isolators to grow at a CAGR of more than 6% between 2016 and 2020. The growth of the market is spurred by the rising demand for high definition end-to-end video transmission. As the demand for a high quality end-to-end video transmission increases, it also requires more number of transponders with higher bandwidth and throughput. With the increasing demand for transponders, the demand for optical isolators also increase, thereby leading to the growth of the market. During 2015, the global optical isolator market was dominated by the APAC region with a market share of over 42%. Increased penetration of low-cost 3G and 4G-enabled smartphones, coupled with high demand for internet protocol-based voice, data, and video services are some of the factors that will bode well for the market’s growth in this region during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the optical isolator segment based on the application.
“Cloud computing is becoming increasingly popular in the market. Cloud is a virtual and remote data center that stores, manages, and retrieves data or resources without requiring any infrastructure costs. Enterprises are inclined toward cloud computing for cost-cutting by eliminating investments required for storage hardware and other physical infrastructures. Cloud computing render a number of added advantages such as swiftness, scalability, viability, reliability, and a shorter time-to-market,” says Sunil Kumar Singh, Lead Analyst, Hardware & Semiconductor, Technavio Research.
The telecommunications segment accounted for almost 74% of the overall market revenue to become the key revenue generating vertical of the global optical isolator market during 2015. The primary use of optical isolators in the telecommunications sector is toassist the installation of fiber optic aerial cables outside plants or fuse fibers in underground cable installations. The telecommunications sector in developing countries such as China, Malaysia, Brazil, and India is growing at a high rate.
The key vendors in the global optical isolator market include AC Photonics, AFW Technologies, Agiltron, Aistana, Corning, DK Photonics Technology, Fiber Optic Communications, General Photonics, Opto-Link, Thorlabs, and SENKO Advanced Components. All these vendors are constantly innovating and introducing new products, which cater to many unmet needs in the market. These companies have a wide geographical presence, which further helps them sell their products worldwide. Therefore, the companies that have higher economies of scale and greater geographical presence have an edge over their competitors. They also have an advantage over their competitors due to their ability to achieve price undercuts. These vendors are investing heavily in R&D and expanding production capacity, which will also help them to overcome time-to-market pressure, resulting in the timely deployment of optical fiber cables.
A more detailed analysis is available in the Technavio report, Global Optical Isolator Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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