GaAs and InP underpin high growth fiber optic networks

BOSTON, USA: In the growing fiber optic analog IC market, silicon, SiGe, GaAs and InP technologies all have different strengths with compound semiconductor technologies being used more in the higher value, higher growth segments.

The Strategy Analytics study, “Device Opportunities in the Fiber Optic Analog IC Market: 2008-2013,” outlines growth projections for fiber optic analog ICs -– TIAs (transimpedance amplifiers), laser drivers and post/limiting amplifiers.

Legacy networks (<2.5Gbps) currently dominate volume in the market, but will represent the slowest growth over the forecast period. Driven by continued demand for bandwidth, 10Gbps networks are predicted to become the de facto standard, showing a 20 percent CAGR from 2011-2013. Augmenting this trend toward higher speed networks will be strong growth of 40Gbps networks.

“The fiber optic market is set to weather the storm better than most communications markets because the capital expense of laying fiber is already in place, while demand for more and faster bandwidth seems insatiable,” observed Asif Anwar at Strategy Analytics.

“We expect GaAs- and InP-based laser drivers and TIAs to be key enabling technologies for the rollout of higher speed 10Gbps, 40Gbps and 100Gbps networks.”

Market demand for fiber optic analog ICs will benefit from consumers and businesses increasing their use of bandwidth-intensive applications including;

* Internet Protocol (IP) applications of voice, video and data,
* High-bandwidth video services, like HDTV (high definition TV) and VOD (video-on-demand),
* Enterprise storage networks,
* Higher bandwidth backhaul from high growth 3G and 4G wireless standards.