A new report from Strategy Analytics has predicted that the market for optoelectronic components, including transmission lasers, pump lasers and photodetectors, will grow to $3.9 billion (£2.4 billion) through 2013.
Entitled Fiber-Optic Optoelectronics Market 2008-2013, the report predicts that the increased adoption of tuneable lasers supporting high-speed networks will increase profitability among component makers.
High-bandwidth video services such as HDTV and VOD will require increased network capacity and translate into strong growth for InP and GaAs-based lasers and photodetectors.
Asif Anwar at Strategy Analytics said that fixed wavelength InP transmission lasers currently represent the largest share of revenue for the market.
"These will increasingly be replaced by tunable lasers, especially for linecards in high-capacity DWDM systems. Higher data rate standards will also require more advanced detector technology, for which detector chips will sell for hundreds of dollars," he commented.
It follows news that Chi Mei Optoelectronics aims to keep its market share in mainland China and expand globally amid increasing competition.