Optical Spectrum Analyzer Market Size and Share Analysis by Type (Portable, Handheld, Benchtop), End Use (Telecommunications, Healthcare, Consumer Electronics) - Global Industry Growth Forecast to 2030

Market Overview

The optical spectrum analyzer market size stood at $326.6 million in 2021, and it is expected to grow at a compound annual growth rate of 6.8% during 2021–2030, to reach $588.8 million by 2030. The growth can be primarily ascribed to the rising demand for these analyzers and developments in the consumer electronics, healthcare, and telecommunications sectors.

Numerous businesses and organizations now demand superior optical measurements for both R&D and manufacturing, due to the surging range of optics-related applications. As a result, significant industry players have adopted advanced distribution channels to fulfill the increasing need for optical spectrum analyzers.

The OSA has a wide range of applications in the IT & telecommunications, medical & healthcare, and other sectors. Therefore, customizing the product to meet the needs of a given application is probably going to be a strategic move that supports the demand for optical spectrum analyzers. In addition, the significant rise in the number of internet users, both commercially and residentially, enforced operators to meet the growing requirement for high bandwidth. This further aided the operators to invest in testing solutions such as analyzers.

Development of 5G Technology Is a Major Market Driver

The evolution in the 5G network technology is expected to accommodate a substantial increase in data demands from users of mobile and other cloud-connected devices. Thus, the development in the technology over the past years has allowed the extensive usage of the millimeter wave frequency spectrum to encounter the challenges of high-speed and lower frequency communications. With the rising need for millimeter components, manufacturers are now developing devices and affordable components with new semiconductor materials. Thus, due to the enhancements in 5G and millimeter wave technologies, new wireless networks are projected to be built to cater to the requirements of high-speed communications. This drives the demand for OSAs.

Moreover, in developing countries of the African, Asian, and LATAM regions, there is an increasing need for cost-effective 5G solutions with a high dynamic range and innovative features to improve the quality of connections. Thus, due to the development of 5G technology, the demand for analyzers is surging in emerging markets. In addition, with an increase in infrastructure growth and complex networks across the world, the optical spectrum analyzer market size is expected to grow in the coming years.

Healthcare Category To Witness Highest Growth Rate

The market for optical spectrum analyzers in the healthcare sector, based on end use, is expected to advance with the highest growth rate, of around 8%, during the forecast period. This is due to the rising manufacturing and R&D of biomedical equipment, material processing systems, consumer products, short-wavelength lasers, and passive devices in the sector.

In the last few decades, the healthcare sector has seen major advancements, due to the increasing research and government funding initiatives. Currently, in healthcare and medical applications, such as lab-on-a-chip and patient-centered medicine, fiber optics are frequently employed, where endoscopy is gaining high traction, which, in turn, is likely to boost the utilization of OSAs in R&D and manufacturing of medical equipment.

Moreover, due to the development in the healthcare industry and the increase in the elderly population, the demand for medical devices for disease treatment is increasing. Thus, these factors are boosting the need for OSAs.

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Telecommunications Sector Dominates the Optical Spectrum Analyzer Market Share

The telecommunications sector accounts for the largest revenue share in the market. The rapidly developing telecom landscape, the increasing adoption of 5G communications, and the surging R&D of more advanced telecom networks for the future are boosting the adoption of optical spectrum analyzers in the telecom industry. Also, OSAs are of great importance to telecom equipment manufacturers, owing to their wide range of applications in the industry mostly in R&D and field applications.

As per the telecommunications laws globally, telecom equipment requires to pass several tests, such as wavelength, power level, dynamic range, and optical signal over noise ratio, to qualify for market entry. Thus, telecom equipment manufacturers use OSAs to test their systems. Also, market players in the industry continuously release the next generation of more powerful and higher-resolution OSA chips, and network operators replace the previous versions of devices in their networks. Hence, these factors drive the market growth.

Future Opportunities for Market Players

Market players are participating in R&D activities and launching new products to meet the surging consumers’ needs.

• Analyzer, such as the Yokogawa Test & Measurement Corporation’s AQ6377, delivers a genuine step-change, enabling researchers to work with various pulse lengths and repetition rates.
• AP207x Series for telecommunications applications is equipped with a high resolution of 5 MHz/0.04 pm, 20 MHz/0.16 pm, and other optical bandwidth resolutions from 140 MHz to 250 GHz.
• EXFO Inc. launched the 5GPro OSA, which offers exact visibility into 5G NR and 4G/LTE environments to examine FR2 (mmWave) and FR1(sub-6 GHz) bands using a single, field-upgradeable technology.
• In the healthcare sector, Quantum cascade lasers are increasingly used for medical spectroscopy diagnostics.

North America Is Major Contributor to Optical Spectrum Analyzer Market Sales

North America has emerged as a highly lucrative market for OSAs, in terms of technology, research, and advancement, owing to the presence of several key players in the region, developed economy, and the advancement in 5G technology. Moreover, major service providers are moving toward launching new devices that support the technology. Also, companies are highly investing in the telecom sector to improve their position. For instance, Rogers Communications invested $2.5 billion in the 5G spectrum, Bell Canada spent $2.1 billion, and TELUS invested $1.95 billion. Thus, these factors are driving the demand for OSAs in the region, which is expected to rise at a CAGR of over 5% during the forecast period.

Key Players in the Market for Optical Spectrum Analyzers Are:

• ID Photonics GmbH
• VeEX Inc.
• Timbercon Inc.
• APEX Technologies
• Luna Innovations Incorporated
• Aragon Photonics Labs. S.L.U.
• Optoplex Corporation
• Yokogawa Electric Corporation
• EXFO Inc.
• Viavi Solutions Inc.

Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Type

• Portable
• Handheld
• Benchtop

Based on End Use

• Telecommunications
• Healthcare
• Consumer Electronics

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.