According to data, the optical module market in 2019 is expected to be 6.7 billion U.S. dollars, and telecommunications products account for 44.7%. Prior to this, due to the sharp decline in the global 4G construction speed, the optical module market for telecommunications fell 11.7% and 3.3% in 2017 and 2018, respectively.

In 2021, 5G is expected to bring a new round of growth to the optical module industry. According to the network architecture of the "5G Technology Development White Paper", the ratio of CU (central unit) to DU to macro base station is 1:6:48. One of the DU and CU requires 4 optical modules, which are 50G/100G. 200G/400G optical modules are required to connect the CU to the convergence layer and the core network. According to the predicted number of macro base stations and the amount of single base station, some organizations estimate that the overall optical module demand (2019-2028) brought by domestic 5G construction will be 28.4 billion yuan, of which 25G optical modules account for 77.1%; it is expected to reach it in 2021 Peak 6.9 billion yuan, CAGR 132.6% from 2019 to 2021; of which, the demand for 25G optical modules is 17.66 million, and the scale is 5.26 billion yuan, accounting for 76.2%.

The overall optical module industry has experienced three periods of high growth in the past 10 years, and the industry is expected to return to growth in 2019. Looking back at the development of the global optical module industry in the past 10 years, the overall market grew rapidly in 2011, 2014 and 2016. Among them, the telecommunications and data communication markets maintained rapid growth in 2014, due to the large-scale construction of China's 4G network and the upgrade of data centers to 40G; the telecommunications market was sluggish in 2016, and the data communication market grew faster, mainly due to products The massive demand brought by the upgrade to 100G. It is expected that in the second half of 2019, the data center will be gradually upgraded to 400G, superimposed on the scale of 5G network construction, and the overall optical module industry is expected to return to growth.