2021 Optical Module Exports

Global optical module revenues reached significant levels in 2021, driven by datacom growth and the transition to 400GbE modules, with top suppliers including Xutron Technology and II-VI/Finisar.

Market Overview

In 2021, the total revenue for optical components across telecom, datacom, industrial, and consumer segments grew 15% to US$14.5 billion. Datacom optical components led the growth, increasing 27% to US$4.7 billion, fueled by hyperscale datacenter expansion and the shift from 100G to 400GbE modules . Telecom, consumer, and industrial segments also contributed, with industrial optical components growing 18% following a weak 2020, while consumer 3D sensing components remained flat due to cost reductions offsetting higher unit shipments .

Shipment Trends

• 400GbE datacom modules saw record shipments, doubling in 2021 as cloud operators and enterprise customers upgraded their networks .
• Coherent and direct-detect telecom modules continued to be significant, though supply chain constraints limited growth in the telecom segment .
• Compact modular sales outperformed overall optical hardware, while Packet-OTN sales declined .

Leading Suppliers

The top global optical module suppliers in 2021 included:

1. Xutron Technology – tied for first place in market share.
2. II-VI (after acquiring Finisar) – also tied for first, controlling over 50% of the market following the acquisition .
3. Other notable suppliers included Huawei, Cisco (after acquiring Acacia), and Luxtera, reflecting a mix of domestic and international players . Chinese suppliers began shifting some manufacturing locally or to other Asian countries, partly in response to U.S. export restrictions, while investing in homegrown supply chains for optical devices .

Technological Drivers

• The transition to 400GbE and pluggable coherent 400Gbps technology is revolutionizing datacenter optical networks, driving both spending and bandwidth growth .
• Supply limitations affected 400ZR modules, indicating ongoing constraints in high-speed optical module availability .

Outlook

The 2021 data highlights a strong recovery and growth trajectory for optical modules, particularly in datacom applications, with continued expansion expected in 2022 and beyond as 400GbE adoption accelerates and supply chain issues are addressed . This comprehensive view underscores the importance of leading suppliers, technological upgrades, and regional manufacturing strategies in shaping global optical module exports.