Optical Performance-Monitoring Module Global Market Report 2025

The optical performance-monitoring module market size has grown rapidly in recent years. It will grow from $1.74 billion in 2024 to $1.99 billion in 2025 at a compound annual growth rate (CAGR) of 14.7%. The growth during the historic period can be attributed to increasing internet traffic, expansion of data centers, rising demand for high bandwidth, growth of telecom networks, and regulatory compliance requirements.

The optical performance-monitoring module market size is expected to see rapid growth in the next few years. It will grow to $3.4 billion in 2029 at a compound annual growth rate (CAGR) of 14.3%. The growth during the forecast period can be attributed to higher cloud adoption, expansion of 5G deployment, growing use of video streaming, increasing enterprise digitalization, and rising demand for low-latency networks. Key trends in the forecast period include advancements in optical signal processing, innovation in AI-driven network monitoring, investment in photonic integrated circuit development, developments in software-defined optical networking, and innovation in edge optical monitoring solutions.

The proliferation of cloud computing is expected to drive the growth of the optical performance-monitoring module market. Cloud computing refers to a model that provides on-demand network access to shared, configurable computing resources that can be rapidly provisioned and released with minimal management effort. The adoption of cloud computing is growing due to digital transformation efforts, with more organizations migrating their IT infrastructure to cloud platforms to enhance scalability, reduce costs, and improve operational efficiency. As enterprises move to distributed cloud infrastructure, the demand for optical performance-monitoring modules increases, as these modules are essential for monitoring and optimizing the high-speed optical fiber connections that ensure reliable data transmission between cloud servers and data centers. For example, according to Eurostat, a Luxembourg-based government agency, 45.2% of EU enterprises used cloud computing services such as internet-based software, computing power, or storage in 2023, marking a 4.2 percentage point increase from 2021. Therefore, the growing adoption of cloud computing is fueling the growth of the optical performance-monitoring module market.

Companies operating in the optical performance-monitoring module market are focused on developing advanced solutions such as ultrahigh-resolution spectral scanning to improve network monitoring accuracy and support higher data rates. Ultrahigh-resolution spectral scanning is a technique that analyzes individual frequency components of an optical signal, enabling networks to monitor signal quality, optimize performance, and ensure reliable long-distance, high-speed transmission. For instance, in September 2022, Coherent Corp., a US-based semiconductor and optical communications technology company, launched its ultrahigh-resolution optical channel monitor (UHR-OCM) for embedded performance monitoring in optical transport systems transmitting at up to 800G and beyond. The module uses advanced coherent receiver and tunable laser technologies to provide fine-resolution spectral scans, polarization-specific spectral content, and precise optical signal-to-noise ratio (OSNR) measurements. This helps optimize network performance in real-time and ensures reliable high-speed, long-distance transmission. The UHR-OCM is designed to support next-generation transport systems, such as reconfigurable optical add-drop multiplexers (ROADMs), offering the precision needed to manage densely packed multicarrier super-channels. Its compact form factor allows for easy integration into modern node-on-a-blade platforms, making it ideal for service providers looking to scale network capacity while maintaining optimal performance.

In July 2022, II-VI Incorporated, a US-based semiconductor manufacturing company, acquired Coherent Inc. This acquisition enables II-VI and Coherent to combine their expertise in materials and laser systems, creating a global leader in materials, networking, and lasers. The move expands their market reach and accelerates innovation across the industrial, communications, electronics, and instrumentation sectors. Coherent Inc. specializes in optical performance-monitoring modules, which play a crucial role in the growing demand for high-performance optical networks.

Major players in the optical performance-monitoring module market are Sumitomo Electric Industries Ltd., Arista Networks Inc., Keysight Technologies Inc., Ciena Corporation, Yokogawa Electric Corporation, II-VI Incorporated, Lumentum Holdings Inc., Jenoptik AG, ADTRAN Holdings Inc., Viavi Solutions Inc., Anritsu Corporation, FS (Fiberstore), Santec Corporation, Luna Innovations Incorporated, Optoplex Corporation, M2 Optics, OptiWorks Inc., BaySpec Inc., AP Sensing GmbH, Guilin Tryin Technology Co. Ltd.

North America was the largest region in the optical performance-monitoring module market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in optical performance-monitoring module report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

The optical performance-monitoring module market research report is one of a series of new reports that provides optical performance-monitoring module market statistics, including optical performance-monitoring module industry global market size, regional shares, competitors with the optical performance-monitoring module market share, optical performance-monitoring module market segments, market trends, and opportunities, and any further data you may need to thrive in the optical performance-monitoring module industry. This optical performance-monitoring module market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

An optical performance-monitoring (OPM) module is a specialized device used in fiber-optic networks to continuously measure, track, and analyze signal quality and overall transmission performance across various network channels. It monitors critical parameters such as optical power levels, wavelength stability, bit-error rates, and signal-to-noise ratio to ensure optimal and reliable network operation under changing conditions. The module identifies degradations, anomalies, or faults in the optical signal, enabling proactive maintenance, network optimization, and reducing the risk of service interruptions or data loss.

The primary components of optical performance-monitoring modules include hardware, software, and services. Hardware in optical performance monitoring refers to physical devices that capture and measure optical signals to maintain network performance. They support network types such as wavelength division multiplexing (WDM), synchronous optical network (SONET) or synchronous digital hierarchy (SDH), optical transport network (OTN), and other network configurations. They are employed in applications including optical network monitoring, data center monitoring, telecommunication, enterprise networks, and other use cases, and are used by end-users including telecom operators, cloud service providers, enterprises, and other organizations.

The countries covered in the optical performance-monitoring module market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The optical performance-monitoring module market consists of revenues earned by entities by providing services such as managed services, remote monitoring and diagnostics, software and analytics platforms, software licensing and upgrades, warranty services, customization and integration services. The market value includes the value of related goods sold by the service provider or included within the service offering. The optical performance-monitoring module market also includes sales of optical power meters, optical time-domain reflectometers (OTDRs), optical loss test sets (OLTS), optical light sources, remote fiber test systems (RFTS), and optical spectrum analyzers (OSAs). Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.