EML (Electro-absorption Modulated Laser) Market Trend, Share, Growth, Size and Forecast 2030

EML (Electro-Absorption Modulated Laser) Industry Prospective:

The global EML (electro-absorption modulated laser) market size was worth around USD 507.12 million in 2022 and is predicted to grow to around USD 1220 million by 2030 with a compound annual growth rate (CAGR) of roughly 11.86% between 2023 and 2030.

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The report delves deeper into several crucial aspects of the global EML (electro-absorption modulated laser) market. It includes a detailed discussion of existing growth factors and restraints. Future growth opportunities and challenges that impact the EML (electro-absorption modulated laser) market are comprehensively addressed in the report.

EML (Electro-Absorption Modulated Laser) Market: Overview

An electro-absorption modulated laser (EML) is an integral part of optoelectronics or the field of optical telecommunications. Like other counterparts, it uses light waves to transmit information across distances with minimum to zero signal strength. EML is a form of integrated electro-optic converter that has become highly popular in telecommunication systems and is considered an integral part of efficient web-based communication. EML is produced using a single chip and is as a laser diode merged with an electro-absorption modulator (EAM). When functioning, the laser diode segment performs under a continuous-wave condition. Output optical signals are generated by applying input voltage on/off signals to the EAM. As opposed to directly modulated lasers (DML), EML does not change properties during the modulation process and showcases several advantages over DML including longer-distance transmission and higher speeds as they have smaller chromatic dispersion. It is important to note that EMLs frequency response depends on EAM capacitance allowing high operating speed.

Key Insights:

• As per the analysis shared by our research analyst, the global EML (electro-absorption modulated laser) market is estimated to grow annually at a CAGR of around 11.86% over the forecast period (2023-2030)
• In terms of revenue, the global EML (electro-absorption modulated laser) market size was valued at around USD 507.12 million in 2022 and is predicted to grow to around USD 1220 million, by 2030.
• The electro-absorption modulated laser market is projected to grow at a significant rate due to the growing investment in 5G and advanced telecommunication systems
• Based on end-user segmentation, telecommunication was predicted to show maximum market share in the year 2022
• Based on application segmentation, Data Center Interconnection (DCI) Network was the leading application in 2022
• On the basis of region, North America was the leading revenue generator in 2022

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EML (Electro-Absorption Modulated Laser) Market: Growth Drivers

Rising investment in 5G and advanced telecommunication systems to drive market growth

The global EML (electro-absorption modulated lasers) market is projected to grow owing to the rising investments in 5G and advanced telecommunication systems as the increasing technological global development demands cutting-edge communication systems. In July 2023, Reliance Jio, India’s most dominant telecom operator, announced its intention to invest USD 1.7 billion in a collaboration with Nokia. The company has already invested close to USD 2.1 billion in a partnership with Ericsson. These measures are expected to help Reliance build a strong foothold in the regional 5G sector. Western countries have been at the forefront of revolutionizing telecom systems and this is further attested by Apple’s recent announcement to invest more than USD 400 billion in its latest deal with Broadcom. Apple is expected to start producing 5G radio frequency components within the US as it aims to steadily decouple with China.

Growing revenue in the data center industry to drive higher growth

The growing investment toward building world-class data centers could further contribute to a higher growth rate in the EML industry. These units deploy an extremely large network of connected computer servers which allows companies to leverage the benefits of remote data storage. In January 2023, Microsoft, a global tech giant, announced that it would be expanding its data center investment in the Hyderabad region of India. Following these announcements, the company has increased the number of data centers to be built from 3 to 6 and each unit will serve nearly 100 MW of Information Technology (IT) load on average.

EML (Electro-Absorption Modulated Laser) Market: Restraints

High cost of production of EML and performance limitations to restrict market expansion

EML devices are considered less expensive than DML when they are in use. However, the cost of producing EML is higher when compared to other diode lasers. One of the main reasons is the use of EAM which also adds to the overall complexity of operating the device. In addition to this, EML fails to justify its cost when severe performance limitations are considered. This includes high dependence of the wavelength on the electro-absorption effect as well as the changing temperatures. Typically under ideal conditions, EML can function in a temperature range of 32°F to 158°F however, factors including manufacturing quality and design can cause changes in the temperature range.

EML (Electro-Absorption Modulated Laser) Market: Opportunities

Growing applications in space communication to create higher growth opportunities

With the growing interest of world leaders and governments in space exploration activities, the players operating in the electro-absorption modulated laser industry  are likely to come across higher growth opportunities. Since EML can work efficiently even for longer distances without any reduction in quality, they have found extensive use in deep space communication. This includes establishing communication with satellites and rovers orbiting the Earth or other closer space objects. In a bid to expand partnerships between state-owned space facilities and commercial operations, in April 20222, the National Aeronautics and Space Administration (NASA) granted over USD 278.5 million to 6 US-based satellite communication providers including Kuiper Government Solutions (KGS) LLC, SpaceX, Inmarsat Government Inc., and others. The recent satellite launches by China and India including Chandrayaan-3 could boost the space programs being conducted in Asian countries further fueling EML demand.

EML (Electro-Absorption Modulated Laser) Market: Challenges

Increasing research & development by providers of alternate technologies to challenge market expansion

One of the key challenges faced by the global EML industry is the existence and increasing research or innovation activities undertaken by providers of alternative technologies. This includes options such as DML, External Cavity Lasers (ECLs), Silicon Photonics, Mach-Zehnder Modulators (MZMs), and external modulators. Some advantages of DMLs include lower power consumption which assists in improving energy efficiency along with design simplicity which is in contrast to EMLs which are known to be highly complex.

EML (Electro-Absorption Modulated Laser) Market: Segmentation

The global EML (electro-absorption modulated laser) market is segmented based on end-users, type, distribution channel, application, and region.

Based on end-users, the global market segments are IT & network management, telecommunication, research & measurements, and others. The highest share was held by the telecommunication segment in 2022 mainly due to the extensive use of EML in establishing smooth communication across longer distances. EMLs are used for their ability to transfer high-bandwidth communication without compromising on the transfer quality. In 2022, the US telecom industry was valued at USD 430 million as per estimates.

Based on type, the electro-absorption modulated laser industry is divided into module products, chip products, and component products. The module products segment managed to generate the highest growth rate in 2022. These products are equipped with ancillary components including a monitor photodiode and laser driver in a single unit. They are also considered easier to use as they showcase simplified integration processes. In September 2022, Coherent Corp, introduced 200 Gbps indium phosphide (InP) EMLs meant for high-speed data center transceivers.

Based on application, the global electro-absorption modulated laser market segments are metropolitan area network, long-distance telecommunications network, and data center interconnection (DCI) network). In 2022, the highest revenue-generating segment was the DCI network unit. These facilities connect several large data centers thus allowing efficient data sharing. Several tribes of DCI networks including higher power efficiency, transmission over long distances, and compatibility with high data rates have resulted in higher growth. By 2026, the DCI network market is expected to reach over USD 17.5 billion.

EML (Electro-absorption Modulated Laser) Market: Report Scope

EML (Electro-Absorption Modulated Laser) Market: Regional Analysis

North America to register the highest growth during the projected period

The global EML (electro-absorption modulated laser) market will be led by North America during the forecast period propelled by the extensive growth in the US telecommunication market fueled by increasing research & development programs to produce innovative and progressive communication systems. The country is home to some of the largest technical giants that have undertaken breakthrough research initiatives to meet the growing demand for 5G and 4G networks. AT&T, one of the largest telecom companies in the world, is located in the US. Recently, the company rolled out 5G+ across the country. The technology has a faster response time as compared to most of its competitors. Additionally, in April 2023, the present US government announced the launch of the Public Wireless Supply Chain Innovation Fund. It is expected to invest USD 1.5 billion toward the development of interoperable and open networks. Asia-Pacific is expected to register higher growth during this forecast period. The rising demand for faster communication, the growing number of EML producers, and rising investment in space exploration activities could drive regional market growth.

EML (Electro-Absorption Modulated Laser) Market: Competitive Analysis

The global EML (electro-absorption modulated laser) market is led by players like:

• Finisar Corporation
• Lumentum Holdings Inc.
• NeoPhotonics Corporation
• Fujitsu Limited
• Kaiam Corporation
• Sumitomo Electric Industries Ltd. (Japan)
• Source Photonics Inc.
• II-VI Incorporated
• Elenion Technologies LLC
• u2t Photonics AG
• Innolume GmbH
• Broadcom Inc

The global EML (electro-absorption modulated laser) market is segmented as follows:

By End-Users

• IT & Network Management
• Telecommunication
• Research & Measurements
• Others

By Type

• Module Products
• Chip Products
• Component Products

By Application

• Metropolitan Area Network
• Long-Distance Telecommunications Network
• Data Center Interconnection (DCI) Network)

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa