Publisher Summary This chapter presents an analysis of the market forces contributing to the present trends in the amplification segment. Current market drivers include the traffic growth in the core network, the move to narrower channel spacing in the metro area networks, and rapid introduction of reconfigurable optical add/drop multiplexers (ROADMs) and 40 Gb/s and 100 Gb/s channels. It also highlights the emerging market for the single-channel amplifiers in the access PON and high-power amplifiers in the CATV distribution fiber to the x (FTTx) networks. There is considerable pricing pressure on the amplifier suppliers, and the emergence of network equipment vendors from east Asia has posed even an greater challenge. The control of key components and ability to make higher functional modules combining amplifiers, for example with dispersion compensating modules (DCMs), WSSs, etc., has prevented new entrants to the amplifier supplier market. At the same time, there is a crowding of the amplifier vendor space and not yet enough consolidation. In summary, the author points out that while the amplifier market is in an evolutionary phase characterized by both steady growth and significant commercial challenges, there are opportunities for innovation and room for entrants with novel solutions.