Optical modules are one of the keys to the operation of data centers. With the gradual implementation of the national strategy of "numbering the east and counting the west", compared with the red ocean market of optical fiber and cable, optical modules have long been in the blue ocean market due to their ultra-high update iteration rate.

This article will analyze whether the optical module track has more room for growth, and explore the investment value of leading companies. For the full report of this article, please go to the "Huazi Research" WeChat public account "Nuggets Optical Communication Track - Optical Modules".

Dongfeng has come, optical modules are going to enter the fast lane?

China is the largest country in the optical module market. According to incomplete statistics from the CDCC, the number of existing data center racks in China will be about 5 million by the end of 2021, and the number of new racks will be 850,000 in the past year. In previous years, the average annual growth rate of the number of domestic data center racks was about 30%. This year, due to the impact of the Eastern Digital and Western Computing Project, compared with the 25% growth rate under the influence of the epidemic in 2021, due to the accelerated construction of data centers and the downward pressure on the economy, the 2022 A conservative estimate of the annual rack growth rate is 30% to 6.5 million racks, with 1.5 million new racks added.