Dublin, Jan. 21, 2026 (GLOBE NEWSWIRE) -- The "Optical Modulators - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The global optical modulators market is poised for significant growth, expanding from USD 6.67 billion in 2025 to USD 17.45 billion by 2031, with a compound annual growth rate of 17.41% from 2026 to 2031.
Driven by rising demand for faster data transmission facilitated by 800 G and 1.6 T optics, hyperscale data-center expansions, and early-stage quantum-computing networks, the market is seeing increased focus on developing phase-stable, low-drive-voltage modulators for thermal efficiency in co-packaged optics.
Advancements in thin-film lithium niobate and silicon photonics are reshaping cost structures, while integrated modulators are becoming mainstream, supported by demand for 100 Gbaud and above optical engines in switch ASIC developments. Emerging economies are bolstering their 5G and fiber-to-the-home infrastructure, enhancing deployment of modulators in the 50-100 Gbps range.
Market Trends and Developments
- Infrastructure Investments: Increased investments in optical-fiber communication have driven a surge in 800 G transceiver shipments, indicating cloud service providers' commitment to optimizing cost-per-bit metrics.
- 5G and FTTH Deployment: Nations like India showed dramatic increases in fiber deployments with the 5G rollout, underpinned by supportive policies. This surge indicates increased demand for modulators apt for high-volume production.
- Technological Challenges: Pushing symbol rates beyond 100 Gbaud faces challenges like thermal management and packaging complexities, with advanced materials being explored to address these issues.
Segment Analysis
Phase modulators dominated the market with a 37.65% share in 2025 due to their essential role in coherent detection. However, integrated modulator chips are anticipated to grow at an 18.05% CAGR, driven by their role in reducing power and latency within co-packaged optics. Silicon photonics is set to accelerate at an 18.25% CAGR, capitalizing on CMOS fabs' capacity for high-volume production, while lithium niobate maintains a strong foothold due to its superior properties.
Geographical Insights
Asia-Pacific, with 38.35% market share in 2025, is propelled by China's transceiver ecosystem and India's rapid infrastructure expansion. North America continues to demand innovative solutions, particularly from hyperscale operators and defense sectors. Europe's steady network upgrades and the diversification into automotive and industrial applications are also noteworthy contributors to market dynamics.
The report includes comprehensive insights into market drivers and restraints, alongside a thorough analysis of segments by product type, material platform, data-rate class, application, and geography. Detailed forecasts are presented in terms of value (USD), offering a robust outlook on the market's journey forward.
Featured Companies
- Lumentum Holdings Inc.
- Fujitsu Optical Components Ltd.
- Thorlabs Inc.
- Hamamatsu Photonics K.K.
- Lightwave Logic Inc.
- Gooch and Housego PLC
- APE Angewandte Physik and Elektronik GmbH
- AA Opto-Electronic SAS
- Conoptics Inc.
- L3Harris Technologies Inc.
- AMS Technologies AG
- Sumitomo Electric Device Innovations USA Inc.
- iXblue Photonics (Exail)
- Ciena Corporation
- Civicom Photonics
- HyperLight Corp.
- Keysight Technologies Inc.
- ThinkPhotonics Ltd.
- Optilab LLC
- Mellanox Technologies (NVIDIA Photonics)
Key Topics Covered
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET LANDSCAPE
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Impact of Macroeconomic Factors
4.7 Technological Outlook
4.8 Porter's Five Forces Analysis
5 MARKET SIZE AND GROWTH FORECASTS (VALUE)
5.1 By Product Type
5.2 By Material Platform
5.3 By Data-Rate Class
5.4 By Application
5.5 By Geography
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles
7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK
7.1 White-space and Unmet-need Assessment
For more information about this report visit https://www.researchandmarkets.com/r/51w0wn
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