MARKET OVERVIEW- ASIA-PACIFIC OPTICAL SPECTRUM ANALYZER MARKET
An optical spectrum analyzer is an instrument that quantifies and displays the power of an optical light source over a given wavelength range. Three key parameters that are measured by an optical spectrum analyzer are the wavelength, power level, and optical signal-to-noise ratio (OSNR). Optical spectrum analyzers are ideal instruments for laser modes analysis, very high-resolution spectroscopic measurements, telecommunication device and system tests and other applications. A growing use of 5G technology coupled with high growth in IT and telecommunications industry in emerging and advanced economies are key factors expected to drive the demand for optical spectrum analyzers. Countries like China and India have one of the most efficient IT industries across the globe, and as the adoption of technology is increasing in these countries, the telecommunication sector is also growing. Furthermore, the rise in technological advancements in the IT and telecommunications sectors is anticipated to provide lucrative growth opportunities for key players operating in the market.
MARKET DRIVERS
The growth of the Optical Spectrum Analyzer market is driven by rise in use of 5G technology in several applications. According to a new report from ABI Research, the deployment of 5G private networks in Asia Pacific is expected to reach revenues of $13 billion in 2028, up from $732 million in 2022. ABI Research also anticipates that revenues from 5G network slicing deployments in the region will grow from $151 million this year to $12 billion by 2028. According to TECHWIRE ASIA, 5G subscriptions in the Southeast Asia and Oceania region are anticipated to reach around 620 million by end-2028, meaning 5G will become the leading technology in terms of subscriptions, with a penetration rate of 48%. The number of 5G subscriptions in the region is projected to reach almost 30 million in 2022. Thus, high growth in 5 G technology has improved the efficiency of sending mails, watching videos, social media, and others, creating demand for optical spectrum analyzers. Moreover, automobile manufacturers are integrating 5G network in government-approved driverless vehicles and connected cars. This is expected to further fuel market growth over the estimated time period.
MARKET OPPORTUNITIES
The market is expected to have new opportunities with the rapid growth of the IT and telecommunication sector, as telecommunication is considered to be one of the major end-users of optical spectrum analyzers. The International Data Corporation (IDC) estimates that in 2021, spending on telecommunications services and pay-TV services in APAC will jump from $494 billion in 2020 to $505 billion. Moreover, after the COVID pandemic, the role of digitalization has been increased in the economy. It is expected to contribute to the growth of the market.
MARKET RESTRAINTS
Optical spectrum Analyzers can be based on very different operation principles. Some of them utilizes wavelength-dependent diffraction angles, while others contain some type of interferometer. A mainly acceptable wavelength resolution can be achieved by using a Fabry–Pérot interferometer as wavelength-tunable bandpass filter. A fundamental limitation of Fabry–Pérots is that they have a quite limited free spectral range. Thus, such instruments are not appropriate as universal optical spectrum analyzers. It is expected to have a negative impact on the growth of the market.
MARKET GROWTH CHALLENGES
The maintenance of optical spectrum analyzers involves a significantly high cost. This is expected to be a key economic challenge. Furthermore, the COVID-19 pandemic has emerged as a major challenge for the growth of the market. Also, the lack of investments in technology sector among some of the underdeveloped nations in Asia is expected to act as a major challenge for the growth of the market.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the Asia-Pacific Optical Spectrum Analyzer market including, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. A growing use of 5G technology has led to a rise in demand for optical spectrum analyzers, and therefore, the market is expected to witness growth at a specific CAGR from 2023-2029.
ASIA-PACIFIC OPTICAL SPECTRUM ANALYZER MARKET SEGMENTAL OVERVIEW
Asia-Pacific Optical Spectrum Analyzer market comprises of different market segments like product type, mode type, end-users and country.
ASIA-PACIFIC OPTICAL SPECTRUM ANALYZER MARKET BY PRODUCT TYPE
On the basis of product type, the Asia-Pacific Optical Spectrum Analyzer market consists of key segments like
The benchtop segment is expected to gain the majority of market share over the forecast period. The growth of the segment can be attributed to high performance capability of benchtop optical analyzers combined with spatial power distribution for visualization offered by benchtop optical spectrum analyzers. Additionally, the benchtop OSA’s have a wide range of wavelength starting from 600 nm to 1700 nm that makes them an ideal choice for use in IT and telecom industries. Additionally, factors like high resolution and precision, highest wavelength accuracy (10pm) and repeatability, stability (10mdB), high amplitude accuracy (0.5 dB), low polarization dependence (50mdB) fast sweep speeds to maximize throughput and their flexible settings are likely to support the growth of the segment.
Also, the portable segment is expected to witness high growth over the forecast period. High flexibility offered by portable optical spectrum analyzers is a key factor driving the growth of the segment.
ASIA-PACIFIC OPTICAL SPECTRUM ANALYZER MARKET BY MODE TYPE
By mode type, the Asia-Pacific Optical Spectrum Analyzer market includes segments like
- Spectrometer Mode
- Wavelength Meter Mode
The spectrometer mode segment is expected to lead the market over the forecast period. Spectrometer mode provides detailed, accurate, and precise information about the spatial distribution of optical power in a wave. These types of devices show detailed information in the form of a graph, where wavelength resides on the horizontal part also known as X-axis and power density resides on vertical part called Y-axis.
The wavelength meter mode segment is expected to witness high growth over the forecast period. The wavelength meter mode is receiving high demand from the IT and telecom industries, semiconductors and electronic industries, energy and utility industries, healthcare and hospitals as it helps in the short time detection of minimal errors if present in a particular wavelength.
ASIA-PACIFIC OPTICAL SPECTRUM ANALYZER MARKET BY END-USER
The Asia-Pacific Optical Spectrum Analyzer market finds major end-users like
- IT and Telecommunication
- Medical and Healthcare
- Energy and Utilities
- Automotive
- Aerospace and Defense
- Semiconductors and Electronics
- Others
The IT and telecommunication segment is expected to lead the market during the forecast period. In the IT and telecommunications sector, optical spectrum analyzers are used in
places where dense wavelength division multiplexing (DWDM) is used to provide high data bandwidth over fiber optics.
The semiconductors and electronics segment is expected to witness high growth over the estimated time period. An increasing demand for optical spectrum analyzers in semiconductors is a major factor driving the growth of the segment.
ASIA-PACIFIC OPTICAL SPECTRUM ANALYZER MARKET BY COUNTRY
The Asia-Pacific Optical Spectrum Analyzer market is studied for the following countries:
- China
- Japan
- India
- Rest of Asia-Pacific
China is expected to dominate the market over the forecast period. China is known to be one of the largest manufacturers of the semiconductors and the production of semiconductor is also growing with the increased demand for electronics in the country. This is expected to drive the growth of the market in the region. According to data released by China’s National Bureau of Statistics (NBS), China produced 359.4 billion ICs in 2021, up 33.3 per cent year in 2020. It marked a significant acceleration from 2020, when China’s IC output rose 16.2 per cent to 261.3 billion units. A report issued by the US-based Semiconductor Industry Association (SIA) forecast that China’s semiconductor industry could account for 17.4 per cent of global sales by 2024, up from 9 per cent in 2020, if its current momentum is maintained.
India is expected to witness high growth over the forecast period. The rise in adoption of 5G technology and high spending on 5G technology by the government as well as private organizations are key factors driving the demand for optical spectrum analyzers in India. For instance, according to a GSMA report, the telecom carriers in India are reportedly expected to invest around $19.5 billion in the development of advanced infrastructure for 5G by 2025. The report showcased that the 5G could benefit the Indian economy by 455 billion USD between 2023 and 2040, or more than 0.6 per cent of the GDP forecast for 2040, reflecting the large number of 5G use cases that could be implemented in the main sectors of India's economy. Thus, high investments in 5G technology is anticipated to drive the growth of the market in the region.
COVID-19 IMPACT ANALYSIS ON THE ASIA-PACIFIC OPTICAL SPECTRUM ANALYZER MARKET
Axiom MRC provides a 360-degree analysis of micro and macro-economic factors with regard to the Asia-Pacific Optical Spectrum Analyzer market. The report involves an exclusive study on COVID-19 impact analysis. In addition, the report also includes a complete analysis of changes in the Asia-Pacific Optical Spectrum Analyzer market, expenditure, and economic and international policies on the supply and demand side. The report also studies the impact of pandemics on Asia-Pacific economies, international trade, business investments, GDP, and the marketing strategies of key players present in the market.
The outbreak of the COVID-19 virus has become a global healthcare emergency where the impact of COVID-19 has significantly affected the health, economy, and society. The spread of COVID-19 has severely disrupted trade and supply chains between the countries, leading to a negatively influence on the global economy. Most companies have been affected to by the challenges, and the effects of the health crisis are expected to continue for many months to come. Government imposed temporary or permanent shut down of several manufacturing facilities has affected the growth of the market to a significant extent. Various industries such as semiconductors, automotive, aerospace, and others, suffered a great loss during the pandemic. Also, the spectrum auction for 5G services was postponed by several governments across the world, which has hindered market growth. On the other hand, IT and telecommunication industry has witnessed great internet traffic. This is expected to drive the demand for optical spectrum analyzers in the upcoming years.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the Asia-Pacific Optical Spectrum Analyzer market is majorly focused on expanding the growth of optical spectrum analyzer industry in Asia-Pacific region with new product innovation, and business expansion. The presence of a range of manufacturers operating in optical spectrum analyzer sector has led to the growing demand for the market. Besides, the market offers a range of products in different applications to fulfil the requirements of consumers, which is further contributing to healthy growth in the market.
The key players studied in the market are
- Yokogawa Test & Measurement Corporation (Japan)
- Thorlabs Inc. (United States)
- Viavi Solutions, Inc (United States)
- EXFO Inc. (United States)
- Anritsu Corporation (United States)
- Baysec (United States)
- Apex Technologies (France)
- Aragon Photonics (Spain)
- Finisar Corporation (United States)
- New Ridge Technologies (United States)
- ID Photonics GmbH (Germany)
- keysight (United States)
- Light Machinery (Canada)
- Optoplex (United States)
RECENT DEVELOPMENT:
August 2021: Yokogawa Test & Measurement Corporation had developed the AQ6380 optical spectrum analyzer. The new model is intended for optical spectrum measurements with high wavelength resolution, and a wide dynamic range in optical communication wavelength bands ranging from 1200 to 1650 nanometres (nm). The AQ6380 benchtop Analyzer employs dispersion spectroscopy and is the industry's first instrument of its kind to achieve a wavelength resolution of 5 picometers (pm).
April 2019: Anritsu announced the sales launch of the new Spectrum Analyzer MS9740B which has been developed for evaluating the output characteristics of optical active devices used by optical communications systems. The MS9740B keeps the same measurement-sensitivity performance, functions, and size as the predecessor MS9740A while shortening measurement processing times by 50%.
