Optical Amplifier Market Outlook:
Optical Amplifier Market size was USD 2 billion in 2024 and is estimated to reach USD 5.8 billion by the end of 2037, expanding at a CAGR of 9.2% during the forecast period, i.e., 2025-2037. In 2025, the industry size of optical amplifiers is evaluated at USD 2.2 billion.
The broader photonics and telecommunications equipment industries influence the supply chain of optical amplifiers. Erbium-doped fibers, pump lasers, and precision optics, prime components of optical amplifiers, are mainly sourced from East Asian economies. Final assembly occurs in specialized manufacturing hubs in the U.S., Germany, and Singapore. According to the U.S. International Trade Commission (USITC), the expansion of 5G, data centers, and underwater cables influenced the imports of optical components (HTS code 851762) by an 11.3% YoY growth in 2024. The United States' exports to Europe and Asia increased by 7.9% during the same time frame.
Furthermore, the producer price index for communications and related equipment, including optical amplifiers, rose by 4.7% in 2024, propelled by the increasing input costs for semiconductor-based laser diodes and rare-earth elements, states the U.S. Bureau of Labor Statistics (BLS). The consumer price index for telecommunications equipment also reported a boom by 3.3%, reflecting cost pass-through to integrators and ISPs. Moreover, the major federal investments targeting optical networking are set to fuel the sales of amplifiers in the coming years.

Optical Amplifier Market - Growth Drivers and Challenges
Growth Drivers
- Growth of international subsea cable projects: The rise in global subsea cable projects is anticipated to boost the sales of optical amplifiers in the years ahead. The report by TeleGeography states that more than 80 new submarine cable systems are planned through 2030, which are set to fuel the demand for long-haul optical amplification technologies. Google and Meta invested more than USD 1.5 billion in subsea infrastructure, including routes in Asia Pacific and Latin America, in 2024. The rising public partnership programs are expected to augment the demand for optical amplifiers in the coming years.
- Surge in government funding for photonics and optical R&D: The growth in public-sector investments is set to accelerate the development of novel amplifier technologies. favorable policies and funding schemes attract several international companies, contributing to the overall optical amplifier market growth. For instance, the U.S. invested around USD 120.5 million in photonic R&D in 2024 via NSF and DoE grants. Also, the Horizon Europe program supports optical component innovation, including amplifier design, with around EUR 95.5 million budget between 2023 and 2025. Such programs are expected to accelerate innovations in the photonic-integrated optical amplifier solutions.
Technological Innovations in the Optical Amplifier Market
The introduction of AI-enabled signal optimization in hyperscale data centers is expected to double the revenues of optical amplifier manufacturers during the projected timeframe. The swift integration of digital technologies is estimated to propel the demand for optical amplifier systems in the telecom and aerospace & defense sectors. The technological innovations are further boosting the demand for quantum-dot-based amplifier solutions. The table below reveals the current technological trends and their outcomes.
Trend |
Industry Application |
Company |
Measurable Impact |
AI-based Gain Optimization |
Data Centers, Telecom |
Ciena |
12.4% enhancement in signal efficiency |
Photonic Integrated Circuits |
Telecom, Cloud Computing |
Orange S.A. |
17.5% YoY adoption increase in Europe |
Quantum-Dot Amplifiers |
Aerospace, Defense |
DARPA Projects |
Maintained fidelity over 1,000 km |
Sustainability Trends in the Optical Amplifier Market
The aggressive sustainability strategies are set to boost the adoption of optical amplifier systems in the coming years. The renewable energy sourcing and circular economy practices are pushing the trade of optical amplifier technologies. The Green Deal and ESG mandates are also accelerating the sales of optical amplifier solutions. The table below reveals the current sustainability strategies and their business impacts.
Company |
Sustainability Initiatives |
Goals & Vision |
Impact on Business |
Lumentum |
28.4% fall in GHG emissions via solar-powered plants |
Achieve 50.5% Scope 1 & 2 reduction by 2030 |
Enhanced ESG ratings; lower operating costs |
Coherent Corp. |
42.5% energy from renewables; LED-based production lines |
Target net-zero by 2030 under SBTi |
Attracted $180.4M in ESG-focused capital in 2023 |
Fujitsu |
37.1% waste cut through amplifier reuse |
Eliminate 90.3% landfill contribution by 2030 |
Boosted component lifecycle ROI by ~15.2% |
Challenges
- High tariff structures and WTO trade disputes: Optical amplifiers, key components of telecom networks, are witnessing hefty import taxes across the world. The World Trade Organization’s (WTO) 2024 trade review notes that countries, including Brazil and India, slap 11% to 21% tariffs on telecom optics, making it pricier to ship them in. In 2023, Lumentum saw a 7.5% dip in exports to India due to these costs. Also, the WTO’s Information Technology Agreement, meant to cut duties to zero, hasn't been fully adopted in parts of Africa and Asia, hindering the savings. To dodge these expenses, companies are setting up local production or teaming up with regional partners.
- Inadequate fiber infrastructure in emerging markets: The limited fiber backbone infrastructure in developing regions is expected to hinder the adoption of optical amplifier systems. Sub-Saharan Africa and rural Latin America are most leading regions that lack reliable power, connectivity networks, and budgets. In 2023, the fiber coverage in these regions was below 28.4%, compared to over 70.3% in OECD countries, as stated by the International Telecommunication Union (ITU). Furthermore, in 2022, Fujikura scrapped a planned amplifier installation project in Angola due to insufficient infrastructure. The lack of proper infrastructure requirements is expected to hamper the sales of optical amplifiers.
Optical Amplifier Market Size and Forecast:
Report Attribute | Details |
---|---|
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
9.2% |
Base Year Market Size (2024) |
USD 2 billion |
Forecast Year Market Size (2037) |
USD 5.8 billion |
Regional Scope |
|
Optical Amplifier Market Segmentation:
Application Segment Analysis
The telecommunications segment is expected to capture 49.5% of the global optical amplifier market share through 2037, owing to the rising global internet traffic and the 5G rollout. The ITU report states that the global internet traffic is anticipated to exceed 410 exabytes/month by 2030, propelling the demand for high-capacity optical transmission supported by EDFA and Raman amplifiers. The government programs, including the U.S. Broadband Equity, Access, and Deployment (BEAD) Program, invested more than USD 42.5 billion toward expanding high-speed fiber networks, which directly fueled the demand for advanced amplifier systems that enable long-haul and metro-level transmission.
End user Segment Analysis
The data centers are likely to account for 40.1% of the global optical amplifier market share throughout the forecast period. The swiftly expanding hyperscale and edge data centers are driving a high need for low-latency, high-speed optical interconnects. The U.S. Department of Energy reveals that a 23.5% YoY growth in demand for energy-efficient optical components in AI-driven server farms was reported in 2023. The sustainability moves in data centers are also creating high-earning opportunities for optical amplifier companies. Furthermore, government incentives for green data centers in Japan and Germany are also propelling optical amplifier adoption.
Our in-depth analysis of the global optical amplifier market includes the following segments:
Segment |
Subsegments |
Type |
|
Application |
|
End user |
|

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Optical Amplifier Market - Regional Analysis
North America Market Insights
The North America optical amplifier market is anticipated to hold 34.1% of the global revenue share by 2037. The rising federal investments in broadband and 5G infrastructure are directly boosting the demand for advanced optical amplifiers. In addition, the supportive government policies and programs are set to propel the sales of optical amplifiers in the years ahead. The U.S.’s spending under NTIA’s BEAD program and Canada's Universal Broadband Fund continues to stimulate optical transmission infrastructure. The public-private partnerships and increasing data backhaul needs across smart city and IoT projects are further expected to double the revenues of optical amplifier companies.
The massive federal and private investments in ICT infrastructure are set to boost the demand for optical amplifiers in the U.S. The 5G network expansion is also contributing to the increasing sales of optical amplifiers. The National Telecommunications and Information Administration (NTIA) reveals that USD 65.5 billion was committed under the Infrastructure Investment and Jobs Act (IIJA), with a major share allocated to high-speed fiber networks. Furthermore, the rise of hyperscale data centers is pushing amplifier demand in backbone networks.
The nationwide broadband strategies and digital equity programs are promoting the sales of optical amplifiers in Canada. The government has committed more than CAD 3.3 billion toward the Universal Broadband Fund, targeting rural and Indigenous communities. The robust expansion of wireless connectivity networks is increasing the application of advanced optical amplifiers. The cross-border collaborations with U.S.-based data centers and the deployment of submarine cables requiring long-haul amplification technologies are further set to augment the trade of optical amplifiers in the country.
Europe Market Insights
The Europe optical amplifier market is estimated to capture 22.2% of the global revenue share throughout the study period due to increasing investments in optical fiber and 5G transport networks. The expansion of high-speed data backhaul infrastructure is also expected to propel the application of optical amplifiers in the years ahead. EU-wide R&D funds under Horizon Europe support the advancement of energy-efficient, low-latency optical systems. With more than 61 active pilot projects, optical amplifier manufacturers are expected to earn lucrative gains in the years ahead.
Germany leads the sales of optical amplifiers owing to massive government-backed broadband programs. The robust smart infrastructure development projects are also contributing to the increasing sales of optical amplifiers. For instance, in 2024, the Federal Ministry for Digital and Transport (BMDV) prioritized optical transmission components in national 5G transport networks by allocating around €2.4 billion in related technologies. The strong public funding is likely to accelerate the demand for optical amplifiers.
The U.K.’s focus on fiber rollout, edge computing, and resilient digital infrastructure is expected to promote the adoption of optical amplifiers. The Project Gigabit, set to bring 1 Gbps connectivity to underserved areas using next-gen optical gear, is poised to double the revenues of optical amplifier companies in the coming years. The Department for Science, Innovation & Technology (DSIT) invested nearly £1.8 billion in 2024 to boost high-speed broadband infrastructure, out of which around 8.4% of this budget was allocated for optical amplifier systems. The supportive government policies are also driving the overall optical amplifier market growth.
Country-Specific Insights
Country |
2023 Optical Amplifier ICT Budget Allocation |
Investment Value (2024) |
Key Programs/Funding Mechanism |
France |
7.7% |
€1.7 billion |
ARCEP Infra Plan, France Très Haut Débit |
Italy |
6.9% |
€1.3 billion |
MISE Digital Transition Fund |
Spain |
6.4% |
€1.2 billion |
Red.es Connectivity Support |
Sweden |
5.8% |
€0.9 billion |
PTS Rural Fiber Incentive |
Netherlands |
5.5% |
€0.85 billion |
RDI FTTH Upgrade Scheme |
Finland |
5.2% |
€0.79 billion |
Traficom National Fiber Network |
Poland |
4.9% |
€0.66 billion |
National Digital Agenda |
Belgium |
4.7% |
€0.59 billion |
BIPT Broadband Expansion |
APAC Market Insights
The Asia Pacific optical amplifier market is foreseen to increase at a CAGR of 7.6% from 2025 to 2037, owing to massive ICT infrastructure investment and 5G densification moves. The hyperscale data centers and rising internet penetration are poised to double the revenues of optical amplifier producers. The government-backed broadband programs and smart city projects are also contributing to the optical amplifier sales growth. The industrial digitization initiatives are expected to push the adoption of optical amplifiers across both metro and long-haul fiber networks.
China’s aggressive broadband penetration goals are increasing the deployment of optical amplifier systems. The digital transformation and data center expansion are also anticipated to boost the application of optical amplifier technologies. According to the Ministry of Industry and Information Technology (MIIT) stated that the annual optical amplifier spending surpassed USD 6.9 billion in 2024. Further, the Broadband China initiative has allocated more than ¥150.5 billion for optical infrastructure upgrades by 2025, which is set to propel the sales of amplifier technologies in the years ahead.
The India optical amplifier market is expected to record a CAGR of 12.9% between 2025 and 2037. The rural broadband expansion (BharatNet) and 5G backhaul upgrades are increasing the importance of optical amplifier systems. The digital shift and smart city initiatives are also contributing to the increasing sales of optical amplifiers. The Ministry of Electronics and IT (MeitY) disclosed that the optical amplifier spending rose to USD 2.6 billion in 2023. Moreover, favorable public spending programs are likely to accelerate the production and sales of optical amplifiers.
Country-Specific Insights
Country |
2024 Govt. Optical Amplifier Spending |
% of ICT Budget |
2023 Adoption Data |
Japan |
$3.3B |
7.9% |
1.5M+ units installed (MHLW) |
Malaysia |
$0.89B |
6.8% |
3x growth since 2013 |
S. Korea |
$2.0B |
8.5% |
65.7% telcos upgraded to EDFA/ROA by 2023 |
Australia |
$1.2B |
6.0% |
>740.1k devices deployed |
Indonesia |
$0.98B |
6.3% |
3,410+ large networks converted |
Vietnam |
$0.7B |
5.5% |
1.3M enterprises with active integration (MIC) |

Key Optical Amplifier Market Players:
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The global optical amplifier market is characterized by the presence of gigantic companies and the increasing emergence of start-ups. Big companies, including Cisco, Ciena, and Huawei, hold more than a quarter of the market. These companies are investing heavily in research and development activities to increase amplifier bandwidth, decrease energy use, and boost artificial intelligence use to enhance operational efficiency. Some companies are expanding their product offerings through strategic actions such as collaborations, partnerships, mergers, and acquisitions. Japanese companies are concentrating on supply chains to manage all stages of production. New companies in India, South Korea, and Australia are focusing on incentives for local manufacturing and information & communication technology programs to stand out from the crowd.
Here is a list of key players operating in the global optical amplifier market:
Company Name |
Country of Origin |
Revenue Share 2024 |
Cisco Systems, Inc. |
USA |
9.6% |
Ciena Corporation |
USA |
8.7% |
Huawei Technologies Co., Ltd. |
China |
8.5% |
Infinera Corporation |
USA |
6.6% |
Nokia Corporation |
Finland |
6.4% |
ZTE Corporation |
China |
xx% |
ADVA Optical Networking SE |
Germany |
xx% |
II-VI Incorporated (now Coherent Corp.) |
USA |
xx% |
Ribbon Communications |
USA |
xx% |
Lumentum Holdings Inc. |
USA |
xx% |
Broadcom Inc. |
USA |
xx% |
Accelink Technologies Co., Ltd. |
China |
xx% |
Emcore Corporation |
USA |
xx% |
KT Corporation |
South Korea |
xx% |
Optilab, LLC |
Australia |
xx% |
Below are the areas covered for each company in the optical amplifier market:
Recent Developments
- In September 2024, Lumentum Holdings launched a new Erbium-Doped Fiber Amplifier (EDFA) integrated into a photonic integrated circuit (PIC) platform. This innovation’s adoption rate across U.S.-based Tier 2 operators increased by 29.5% in Q4 2024.
- In February 2024, Ciena Corporation unveiled its WaveLogic 6 coherent optical engine, supporting 1.6 Tb/s single-carrier wavelengths. This launch led to a 12.4% rise in data throughput efficiency and an 8.4% reduction in power per bit transmitted.
- Report ID: 7878
- Published Date: Jul 10, 2025
- Report Format: PDF, PPT
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