Event:
Recently, lightcounting released the latest report: “the emerging market for pam4 and coherent DSPs”, which updated the market data of pam4 and related DSP optical chips in 2021 and made a market forecast for 20222027.
Comments:
The optical communication chip market will maintain 18% growth in the next five years
Lightcounting’s latest forecast: from 2022 to 2027, the optical communication chip market will maintain a compound annual growth rate of 18%, and the total sales will increase from about US $2.4 billion in 2022 to more than US $5.4 billion. Ethernet and DWDM have become the fastest-growing market segments, contributing most of the market share.
From 2016 to 2018, the optical communication IC chipset market showed a downward trend. The sales of DWDM chipsets decreased from 2016 to 2018 due to the use of low-cost pluggable 100g modules instead of high-cost on-board solutions in the DWDM field. In addition, the competition among DWDM transmission equipment suppliers worsened, resulting in the decline of product gross profit margin and aggravating the decline of sales.
In 2022, the sales volume of pam4 chips will surpass that of related DSP chips
From 2016 to 2020, the sales of relevant DSP chips far exceeded that of pam4 chips. This situation will change significantly in 2021. The delay of telecom operators’ infrastructure projects and the replacement of on-board solutions with pluggable DWDM modules accelerated the decline of related product sales in 2021. Thanks to the mass deployment of 400g optical modules by Internet companies such as Amazon, the sales of pam4 chipsets almost doubled in 2021. Lightcounting predicts that by 2022, the sales of pam4 chips will exceed that of related DSP chips.
Data center industry drives the growth of high-end optical chip industry
According to the statistical data from 2016 to 2021 and the forecast data from 2022 to 2027, the data center industry continues to drive the growth of the optical module industry. Among them, the pam4 chip with the fastest growth is mainly used for high-speed short-range optical modules, which corresponds to the internal interconnection scenario of IDC; Coherent DSP optical module is mainly used for OTN equipment, data center interconnection and optical transmission network of telecom operators. The development of data center industry driven by yuancosmos, industrial digitization and Eastern digital and Western computing will drive the continuous growth of optical module industry.
Suggested concern
It is suggested to pay attention to the leading enterprises in the field of optical modules and optical devices in China: Zhongji Innolight Co.Ltd(300308) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Advanced Fiber Resources (Zhuhai) Ltd(300620) , Broadex Technologies Co.Ltd(300548) , Huagong Tech Company Limited(000988) , Accelink Technologies Co.Ltd(002281) , Eoptolink Technology Inc.Ltd(300502) , Cig Shanghai Co.Ltd(603083) , etc.
Risk tips
Systemic risk; Industry promotion is less than expected risk.
