With the acceleration of global digitalization, the demand for computing power is growing at an unprecedented rate. As a key component of data transmission, optical modules are ushering in the first period of their development.
First, the investment in computing power network has increased, and the optical module market is good.
In recent years, the capital expenditure of operators in the telecom market on computing power networks has shown a moderate growth trend. Giants such as China Mobile, China Telecom, and China Unicom have increased their investment in the field of computing power networks. This trend indicates that the optical module market will usher in a broader space for development.
Second, the growth rate of the data communication market is significant, and the demand for optical modules continues to be strong.
The rapid development of the data communication market has brought a steady stream of impetus to the optical module industry. The capital expenditure growth rate of the four major cloud vendors in North America is as high as 30%.77%, data center construction is in full swing. At the same time, the popularization of the leaf-spine network architecture has further promoted the growth of the number of optical modules and the increase in speed.
Third, the AI arms race has begun, and the iterative upgrade of optical modules has accelerated.
The rise of AI applications such as ChatGPT has sparked an AI arms race on a global scale. Behind the model upgrade iteration is the training and inference of massive data, which requires the network interconnection within the data center to keep up with the pace. As a result, the demand for high-speed optical modules has surged, which has promoted the rapid development of the industry.
Fourth, new technology solutions are emerging to lead the future of the industry.
In the era of computing power, the energy consumption of data centers is becoming increasingly prominent. Upgrading optical transceiver technology requires not only increasing speed, but also addressing challenges such as power consumption and cost. New technologies such as LPO, CPO, silicon photonics and thin-film lithium niobate are expected to become breakthroughs in the industry and lead the optical module industry to a new peak.