This is the company global market forecast of consumption of external optical modulators, which are deployed/used by Telecommunication and related commercial service providers in transmission links. 

Optical modulators encode information onto optical transmissions by converting electronic data signals to optical pulses. The years of coverage, in this report, are:  2010-2015. This report provides the modulator market forecasts in terms of Quantity (number of units), Average Selling Prices per unit and Consumption Values.  

The fiber optics industry is now observing an increase in the consumption of the transmitter/receiver optical communication links that facilitate a strong environment for the use of modulators.  This report presents the forecast data for the following regions, plus a Global summary:

-           Americas (North America, Central and South America)

-           Europe (Western & Eastern Europe, plus Middle Eastern countries)

-           Asia Pacific (APAC)

Company independent trend analysis points out that there will be 100Gbps links deployed within the timeframe of this analysis (2010-2015); however, mid- to late in the forecast period.  Coherent detection is the trend that operators are accepting, relative to deployment of 100Gbps links and beyond. 

America held a slight relative market share lead in global consumption value of optical modulators in 2010, with about 42 percent relative market share in telecommunication, Internet (ISP) and related commercial optical communication applications.  The American region will increase slightly slower in terms of annual growth (2010-2015), therefore, is forecast to slip from the leadership role in 2015, giving away from the impressive build-out in the APAC region, led by China especially.   

Modulators are a critical part of DWDM network infrastructures that are expanding to support increasing bandwidth requirements.  The 2010-2015 forecast period will include technology advances and lower cost options for optical modulators in response to the need for more affordable optical transmission links. Modulators used in 40-Gbit/sec links for higher-speed networks are expected to demonstrate dramatic growth. We also expect America to take the (consumption value) lead in the deployment of even faster 100G links during the forecast period.  Worldwide consumption value (all categories) is forecast to increase at a pace of 24 percent per year over the 2010-2015 timeline.

Consumption volume (quantity/unit) trends of optical modulators in commercial communication network applications show that the APAC will maintain the lead in volume consumption.  It is important to note that the APAC region tends to report a lower average selling price for their modulator consumption. 

During the forecast period, bandwidth expansion demands will push for new network links, incorporating Metro Core, Metro/Access, Long Haul, WDM, OADM and other system-based deployments. 

There are several types of modulators, discussed in this study report. However, current optical transmission systems, there are primarily two types of external modulators used extensively: “Electro-Optic” and “Electro-Absorption.”  Modulators either directly modulate the optical beam as it is generated at the optical source or externally modulate the optical beam after it has been generated (this study covers externally modulation). 

In this report, the optical modulator market is presented in segments:

·                     Electro-Absorption (EA) Type

·                     Electro-Optical (E-O) Type

The consumption of specific types of optical modulators used in fiber optic communication links is determined by the customer’s specifications. These specifications often lead to preferences of optical modulator technology type (EA or EO).   Also, based on customer requirements of optical transmission bit-rates and the research and development (R&D) time allotted to each technology type, Company has forecast consumption trends by transfer data rates. The data presented in this report details optical modulator use by the following:

·                     2.5-Gbps

·                     10-Gbps

·                     40-Gbps

·                     “Other” data transfer rates

1. Executive Summary1-1

1.1  Optical Communication Modulator Market Forecast1-1

1.2  Competitive Market Share 1-17

1.3  Fiber Optic Networks – Overview1-21

1.4  Fiber Optics Industry: Decade-to-Decade1-59

2.Regional Market Forecast  (America, EMEA and APAC) – Optical Modulators 2-1

3.Optical Modulator Technology 3-1

3.1 Overview3-1

3.2Modulator Definition 3-34

4.Optical Communication Trends4-1

4.1 Fiber Network Technology Trends  4-1

4.2 Components 4-18

4.2.1  Overview4-18

4.2.2  Transmitters and Receivers 4-19

4.2.3  Optical Amplifiers4-20

4.2.4  Dispersion Compensators4-21

4.2.5  Fiber Cable4-22

4.3 Devices and Parts 4-24

4.3.1  Overview4-24

4.3.2  Emitters and Detectors 4-25

4.3.3  VCSEL & Transceiver Technology Review4-26

4.3.4  Optoelectronic Application-Specific Integrated Circuits (ASICs) 4-35

4.3.5  Modulators4-35

4.3.6  Packages4-39

4.3.7  Optoelectronic Integrated Circuits4-39

5. Methodology5-1

5.1 Research and Analysis Methodology5-1

5.2 Assumptions of Fiber Optic Component Global Market Forecast5-5

6. Definitions6-1

6.1   Acronyms, Abbreviations, and General Terms 6-1

7  Market Forecast Data Base – Overview and Tutorial7-1

7.1 Overview7-1

7.2 Tutorial7-3

Excel – Data Base Worksheets: Complete Market Forecast (2010-2015)

Global

                                    America

EMEA

                                    APAC

List of Figures

1.1.1  Full-band tunable high-dynamic-range transmitter engine  1-2

1.3.1  Access Network Elements 1-22

1.3.2  North America Multiprotocol Label Switching (MPLS)1-37

1.3.3  North America Internet Access1-38

1.3.4  FTTP PON Architecture 1-40

1.3.5 Next-Generation Wholesale Broadband Network1-43

1.4.1  Evolution of Research Emphasis during Technology Life Cycle 1-67

2.1 DP-QPSK Receiver (Supporting 100-Gbps) 2-6

3.1.1 10-Gbit/s directly modulated DFB laser and scope to network system3-10

3.1.2 Directly Modulated Analog Laser Module  3-11

3.1.3 Structures of a LN Modulator)3-14

3.1.4    "ZERO" and "ONE" Driving Voltage of the LN Modulator 3-15

3.1.5Electrical Digital Signals are Transformed into Optical Digital Signal  3-16

3.1.6Changes in the "phase" of optical signals by applying voltage3-17

3.1.7Reducing DC Drift 3-18

3.1.8Reducing DC Drift, Continued3-19

3.1.9 Bias Control Configuration by TAP Coupler and PD Integrated Modulator3-20

3.1.10   Y-Combiner Junction 3-21

3.1.11  Main Optical output and Monitor signal 3-21

3.1.12  40 Gbps Lithium Niobate (LiNbO3) Optical Modulator3-23

3.1.13  40Gbps LN optical modulator with 1.8V drive voltage 3-22

3.1.14 Polymer Modulator Designed for 100G RF Photonics & Optical Communications 3-24

3.1.15  Electroabsorption Modulator Structure Illustration3-27

3.1.16  Pigtailed EA-Based Fiber Optic Module3-28

3.1.17  EML Line Drawing3-29

3.1.18  Configuration Using a PEM for Measurement Application3-31

3.2.1 High-Speed Laser Diode Modules  3-37

3.2.2 Injection Laser with EA modulator3-38

3.2.3 External Modulation, General Circuit 3-39

4.3.3.1   Genealogy of VCSELs 4-28

4.3.3.2   Typical Intra-Office Interconnections4-32

4.3.7.1   Trend of Transceiver Packaging Density, Gigabits/Cubic Inch  4-45

5.1.1 Market Research & Forecasting Methodology 5-3

List of Tables

1.1.1  Optical Communication Modulator Global Forecast, By Region ($, Million) 1-5

1.1.2  Optical Communication Modulator Global Forecast, By Region (Quantity, K)1-5

1.1.3  Global Forecast of Optical Communication Modulators, by Type ($, Million)1-12

1.1.4  Global Forecast of Optical Communication Modulators, by Type (Quantity, K) 1-13

1.1.5  Global Forecast of Optical Communication Modulators, by Bit-Rate ($, Million) 1-15

1.1.6  Global Forecast of Optical Communication Modulators, by Bit-Rate (Quantity, K)1-15

1.1.7Global Forecast of Optical Communication Modulators, by Bit-Rate (ASP, $ Each) 1-16

1.2.1  Market Share (%) of Leading Optical Modulator Competitors1-17

1.3.1Minimum & Ideal Speeds Necessary for Popular Applications1-28

2.1  American Forecast of Optical Communication Modulators, by Type ($, Million)2-9

2.2  American Forecast of Optical Communication Modulators, by Type (Quantity, K)2-9 

2.3  EMEA Forecast of Optical Communication Modulators, by Type ($, Million)  2-10

2.4  EMEA Forecast of Optical Communication Modulators, by Type (Quantity, K) 2-10

2.5  APAC Forecast of Optical Communication Modulators, by Type ($, Million)2-11

2.6  APAC Rim Forecast of Optical Communication Modulators, by Type (Quantity, K)  2-11

2.7 American Forecast of Optical Communication Modulators, by Bit-Rate ($, Million) 2-12

2.8 American Forecast of Optical Communication Modulators, by Bit-Rate (Quantity, K)  2-12

2.9 EMEA Forecast of Optical Communication Modulators, by Bit-Rate ($, Million) 2-13

2.10 EMEA Forecast of Optical Communication Modulators, by Bit-Rate (Quantity, K) 2-13

2.11 APAC Forecast of Optical Communication Modulators, by Bit-Rate ($, Million)  2-14

2.12 APAC Forecast of Optical Communication Modulators, by Bit-Rate (Quantity, K)  2-14

2.13List of Countries – APAC Region  2-15

3.1.1 Key Performance Indicators and Measurements of Modulation Coding Technologies3-26

3.2.1  Sample Acousto-Optic Modulator Specifications3-35

7.1.1  Optical Modulator Data Base Categories, by Technology Type7-1

7.1.2  Optical Modulator Data Base Categories, by Associated Transmitter Bit-Rate7-2