MARKET OVERVIEW- EUROPE OPTICAL SPECTRUM ANALYZER MARKET
An optical spectrum analyzer quantifies and displays the power of an optical light source over a given wavelength range. Optical spectrum analyzers are ideal instruments for laser modes analysis, very high-resolution spectroscopic measurements, telecommunication device and system tests and other applications. The rise in demand for faster and more reliable communication networks across different industries is a key factor driving the demand for optical spectrum analyzers in Europe. Also, high investments in 5G technology are anticipated to drive the growth of the market in the region. Furthermore, the rise in technological advancements in IT and telecommunications sector in European nations like Germany, France, U.K etc. are anticipated to provide lucrative growth opportunities for key players operating in the market.
MARKET DRIVERS
The growth of the Europe Optical Spectrum Analyzer market is driven by the rise in use of 5G technology. The GSMA Mobile Economy Europe 2022 report predicts that by 2025, the average adoption of 5G across Europe will hit 44%, with the UK and Germany expected to have the highest 5G adoption rates in Europe at 61% and 59% respectively. In 2021, 474 million people in Europe (86% of the population) were subscribed to mobile services, and this is expected to grow to 480 million by 2025. The majority of countries in Europe have now deployed commercial 5G services, and nearly two thirds of operators in the region have launched 5G networks. By 2025, there will be 311 million 5G connections across Europe, a 44% adoption rate. According to European Telecommunications Network Operators’ Association, Europe recorded its highest investment effort in four years, hitting €52.5bn in Capital Expenditure (CapEx) in 2020. Similarly, the share of Europeans reached by 5G has now doubled from 30% in 2020 to 62% in 2021. 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. Telecommunications is Europe’s leading technology business, with an added value of €141.5 billion per year. The sector is accelerating due to the adoption of advanced technologies like 5G, edge computing, cloud, Artificial Intelligence, IoT, cybersecurity among others.
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 mostly 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, stringent EU regulations in the telecommunication sector are anticipated to negatively impact the growth of the market.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the Europe 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 rise in demand for optical spectrum analyzers, and therefore, the market is expected to witness growth at a specific CAGR from 2023-2029.
EUROPE OPTICAL SPECTRUM ANALYZER MARKET SEGMENTAL OVERVIEW
Europe Optical Spectrum Analyzer market comprises of different market segments like product type, mode type, end-users and country.
EUROPE OPTICAL SPECTRUM ANALYZER MARKET BY PRODUCT TYPE
On the basis of product type, the Europe Optical Spectrum Analyzer market consists of key segments like
The benchtop segment is expected to gain the major market share over the forecast period. The growth of the segment can be attributed to high performance capability and 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 & 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.
EUROPE OPTICAL SPECTRUM ANALYZER MARKET BY MODE TYPE
By mode type, the Europe 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 the X-axis, and power density resides on the vertical part, called the 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 short time detection of minimal errors if present in a particular wavelength.
EUROPE OPTICAL SPECTRUM ANALYZER MARKET BY END-USER
The Europe 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 key factor driving the growth of the segment.
EUROPE OPTICAL SPECTRUM ANALYZER MARKET BY COUNTRY
The Europe Optical Spectrum Analyzer market is studied for the following countries:
- Germany
- U.K
- France
- Italy
- Spain
- Rest of Europe
Germany is expected to dominate the market over the forecast period. Rising investments in 5G technology are expected to drive the growth of the market in the country. For instance, in March 2021, Apple announced plans to invest over $1.2 billion in R&D and a new European silicon design center in Munich, Germany, with a focus on 5G and future wireless technologies.
U.K is expected to witness high growth over the forecast period. High investments in 5G technology is anticipated to drive the growth of the market in the region. For instance, in December 2022, the UK government outlined its intentions to invest in driving 5G and 6G development with the support of £110 million ($135m) worth of investment. This will see three UK universities awarded £28 million ($34m) to help design and develop 5G and 6G network technology with selected vendors.
COVID-19 IMPACT ANALYSIS ON THE EUROPE OPTICAL SPECTRUM ANALYZER MARKET
Axiom MRC provides a 360-degree analysis of micro and macro-economic factors with regard to the Europe 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 market, expenditure, and economic and international policies on the supply and demand side. The report also studies the impact of pandemics on Europe economies, international trade, business investments, GDP, and the marketing strategies of key players present in the market.
The spread of COVID-19 has severely disrupted trade and supply chains between the countries, leading to a negatively influence on the global economy. Various industries such as semiconductors, automotive, aerospace, and others suffered a great loss during the pandemic. Also, the spectrum auction for 5G services were 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 Europe Optical Spectrum Analyzer market is primarily focused on expanding the growth of the optical spectrum analyzer industry in Europe with new product innovation, business expansion, and the increasing presence of a range of manufacturers operating in the 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 further contributes 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:
June 2021: Viavi Solutions Inc. (VIAVI) had introduced the mOSA Module, adding optical spectrum analysis to the VIAVI Multiple Application Platform (MAP) Optical Manufacturing Test system. The mOSA complements existing VIAVI solutions for optical power measurement, switching and signal conditioning, and test automation, further enhancing the industry's most comprehensive test portfolio for the development and manufacturing of optical communications technology.
June 2021: Bristol Instruments announced offering software that converts 438 Series Multi-Wavelength Meter into a high-resolution optical spectrum analyzer. The model 438 offered the most accurate, effective, and adaptable WDM wavelength testing currently available, owing to features like high precision, measurement rate up to 10 Hz, and a wide operational range of 1000 to 1680 nm.
