The Optical Modulators Market was valued at USD 29.06 billion in 2020, and it is expected to register a CAGR of 6.83%, during the period of 2021-2026.
Amid the covid-19 pandemic, the world’s largest investors are focusing on the digital infrastructure market, citing high demand for capital to boost the data economy. The growth of hyperscale computing has boosted the investment interest in data centers globally. Communications, servers, and many other electronic systems depend on high-speed serial transceivers and optical modulators, which are forming the backbone of networks and the Internet.
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Just as a transistor acts as a switch for the electronic signals, an electro-optic modulator act as a switch for the optical signals. Optical communication primarily uses light, so the modulator’s function is to turn on and off the light that is sending a stream of binary signals over optical fibers.
Today’s long and medium-range communication networks primarily rely on the optical fiber links, where encoding the electrical signals into a near-infrared modulated light is an essential function that was traditionally realized by the discrete electro-optical modulators. The rapidly rising trend of carrying information over much shorter distances combined with the foreseen microelectronics copper interconnect bottleneck has pushed the researchers to move toward silicon as an alternative photonic material.
This is owing to its capacity to meet the rapidly increasing demand for higher bandwidth technologies, via energy-efficient, ultra-fast, small footprint optical networks-on-chip, and cost-effectiveness. This resulted in the combination of the complementary-metal-oxide-semiconductor compatible materials such as germanium and very recently the inclusion of graphene with the silicon enabled high bandwidth electro-absorption modulators.
Today’s soaring demand for increasing the data transmission rate motivates a great challenge to improve the spectral efficiency of fiber-optical channels. To achieve higher spectral efficiency, exploiting an advanced coded modulation scheme is inevitable. This, coupled with advances in the telecommunication industry, has increased the adoption of optical modulators in Optical Communication. Optical fibers, conceived for fast communication on long distances, are also developing in manifold other industrial and commercial sectors, widening the applicative potentialities of photonic technologies.
Further, with the advent of optical fiber networks globally, the size, performance and power consumption of the lithium niobate modulators are becoming a crucial factor to be considered for telecoms operators, especially when the data centers and base stations are being forecast to be among the largest electricity users across the telecoms industry.
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