- In Q2 2022, the global optical module market scale continues to grow
According to the latest statistics from LightCounting, the global optical module market size in Q1 and Q2 in 2022 reach 2.016 and 2.235 billion US dollars respectively. In the first half of 2022, the global optical module market scale increases by 25.17% year-on-year, and the scale in Q2 increases by 23.18% year-on-year and 10.86% quarter-on-quarter. LightCounting pointed out in the report that worries about the continued downturn of the global economy are still an important factor affecting the growth of optical module demand.
Figure 1: Quarterly data update of global optical module market size
- In the telecom market,the market share of DWDM modules reached a new high
With the mass shipment of 400ZR and 400ZR+ modules, the global DWDM optical module market share in Q1 and Q2 in 2022 will be 440 and473 million dollars respectively, up 95.86% and 85.59% year-on-year, 7.74% and7.51% quarter-on-quarter respectively.
Sales growth of FTTx optics accelerated in 2021, and this trend continued in the first half of 2022. Sales of wireless front-haul optical modules are recovering at the same time.
Figure 2: Optical module sales revenue in telecom market ($million)
- Datacom Market: Demand for 200G Optical Modules Grows, Overall Market Demand to Be Recovered
In 2022, the global market share of Ethernet optical modules in Q1 and Q2 will be 1.112 and 1.207 billion dollars respectively. Although the sales revenue of Q2 is lower than the highest record of Q4 in 2021, it increases by 12.00% year-on-year and 8.60% quarter-on-quarter.
Demand for Fibre Channel optical modules declines in 2022, while demand for AOC devices remains stable.
Figure 3: Optical module sales revenue in the datacom market ($million)
The LightCounting research report pointed out that demand for 400G DR4 in Amazon and industry-wide demand for 100G LR4 have declined in early 2022. In Q2 2022, the demand for 100G data communication optical modules rebounds, and the demand for 200G optical modules maintains steady growth. Among them: sales revenue of 100G optical module is 408 million US dollars, a year-on-year increase of -17.04% and a quarter-on-quarter increase of 10.67%; 200G optical module sales revenue is $230 million, an increase of 622.57% year-on-year and a quarter-on-quarter increase of 31.65%; 400G optical module sales revenue is $358 million, a year-on-year increase of 21.53% and a quarter-on-quarter increase of -2.39%.
Figure 4: Sales revenue of Ethernet optical module market segment ($million)
- Industry Trends: Downstream Investment Growth Slows Down, Supply Chain Problems Still Exist
In the first half of 2022, the capital expenditures of cloud vendors and telecom operators around the world have maintained growth, but there are signs of slowing growth in Q2. For the first time since Q3 2020, the growth rate of capital expenditures of cloud vendors is below 20%. The growth rate of capital expenditure of telecom operators has slowed down compared to the second half of 2021. In terms of supply chain, many companies such as II-VI and Ciena said that the problem still exists and may continue. Supply chain problems are still one of the main factors affecting the industry’s prosperity.