The key elements of value chain include raw material suppliers, components manufacturers, Original
equipment manufacturers, distributors and end users.
The distributors stage consist of channel partners, resellers, direct sales partners and vendors that
are involved with sales and distribution of photonic systems. Ibsen Photonics A/S of Denmark make
efficient use of Distributors spread across Russia, Singapore, China, India, Taiwan and Israel to meet
Customers evolving requirement.
Optical component vendor have witnessed massive price reduction in their market. The
manufacturers have incurred loss due to high fabrication cost and low selling price. Besides, the
market is also competitive.
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Component Insights
The market can be segmented based on use of different components such as Optical waveguides,
lasers, optical modulators, Wavelength-Division multiplexing and photodetectors. Among these, the
WDM segment is expected to dominate the component arena in terms of size by 2025. WDM filter is
used in current electronics and current fibers.
The excess use of Internet worldwide, where WDM filter plays vital role will push the growth in data
communication segment.
Product Insights
The market subdivision on the types of products includes Optical waveguides, lasers, optical
modulators, WDM and photodetectors. In 2015, the Active optical Cables (AOC) was largest segment
in terms of size. The use of AOC enables user to transfer data at a high rate over a long distance
through photonics technology.
AOC are cost effective as compared to traditional optical modules and provide smooth installation for
high-performance computing. In terms of CAGR the optical multiplexer segment can be fastest
growing segment from 2016 to 2025.