Optical Transceiver Global Market Report 2024

The optical transceiver market has grown rapidly in recent years. It will grow from $10.06 billion in 2023 to $11.54 billion in 2024 at a compound annual growth rate (CAGR) of 14.7%. During the historic period, growth can be credited to several key factors. The expansion of the internet, coupled with escalating bandwidth demands, fueled the need for higher data rates. Telecommunication networks underwent substantial upgrades, alongside widespread deployment of fiber optic networks. Additionally, the expansion of data centers contributed significantly to this growth trajectory.

The optical transceiver market is expected to see rapid growth in the next few years. It will grow to $20.06 billion in 2028 at a compound annual growth rate (CAGR) of 14.8%. Anticipated growth in the forecast period is expected to stem from several focal points. There's a notable emphasis on energy efficiency, alongside advancements in silicon photonics technology. The expansion of smart cities, coupled with a global increase in broadband access, also contributes significantly, driven by heightened security and encryption demands.

The surge in optical transceiver market growth is driven by the escalating data traffic across networks. Data traffic signifies the volume of data transmitted over networks, divided into packets and reassembled upon receipt. Optical transceiver devices facilitate high-speed data transmission in environments with substantial data flow. For instance, in 2021, global internet traffic surpassed 3 zettabytes, and by 2022, it hit 150,000 GB per second, marking a significant surge from 156 GB in 2002.

The anticipated expansion of the optical transceiver market is attributed to the widespread adoption of 5G networks. 5G, the latest cellular technology, offers faster speeds and increased capacity. Optical transceivers are pivotal in transmitting vast data volumes at high speeds and low latency in the 5G infrastructure. Reports indicate an estimated 1 billion 5G connections in 2022, projected to rise to 2 billion by 2025.

Technological advancements are a prevailing trend shaping the optical transceiver market. Companies in this sector prioritize innovation to enhance product capabilities and maintain market presence. For instance, in March 2023, Quantifi Photonics introduced the O-band Coherent Optical Receiver and VISIQ Coherent Signal Analysis Software. Their O-band receiver leverages coherent optical tech for cost-effective and energy-efficient data transfer between distant data centers.

The competitive edge in the optical transceiver market is pursued through innovative product development. Leading companies focus on offerings such as hot-pluggable optical transceivers, enabling insertion/removal from network devices without powering down. For instance, May 2021, VIAVI Solutions launched Fusion JMEP 10, the industry's inaugural 10 GbE smart SFP+ transceiver. It simplifies network performance monitoring, deployment, and troubleshooting, minimizing downtime and costs. This compact, hot-pluggable solution is easily deployable in existing SFP+ ports, offering an affordable Ethernet testing alternative.

In August 2022, Lumentum Holdings Inc., a US-based investment firm that designs and manufactures innovative optical and photonic products, acquired NeoPhotonics Corporation for an undisclosed amount. This acquisition aims to create the digital transformation of work and life, which is driving relentless growth in the volumes and performance of cloud and network infrastructure. NeoPhotonic Corporation is a US-based designer and manufacturer of advanced hybrid photonic integrated optoelectronic modules and subsystems, and optical transceivers.

Major companies operating in the optical transceiver market report are Coherent Corp., Accelink Technology Co. Ltd., Huawei Technologies Co. Ltd., Broadcom Inc., Source Photonics Inc., Hisense Broadband Inc., Juniper Networks Inc., Cisco Systems Inc., Fujitsu Optical Components Limited, Lumentum Holdings Inc., Sumitomo Electric Industries Ltd., Perle Systems, Fiber Optic Communications Inc., Arista Networks Inc., ZTE Corporation, Applied Optoelectronics Inc., Infinera Corporation, Intel Corporation, InnoLight Technology Co. Ltd., Hisilicon, Eoptolink Technology, Molex LLC, NeoPhotonics Corporation, HUBER+SUHNER Cube Optics AG, NADDOD Pte. Ltd., Reflex Photonics Inc., Oclaro Inc., Finisar Corporation, Acacia Communications Inc., Ciena Corporation.

North America was the largest region in the optical transceiver market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global optical transceiver market during the forecast period. The regions covered in the optical transceiver market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the optical transceiver market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Two primary types of optical transceivers exist such as single-mode fiber and multimode fiber. A single-mode fiber transceiver, contained within an optical module, manages data transmission over single-mode optical fiber cables. This allows for high-bandwidth signal transmission across extensive distances. Diverse protocols such as Ethernet, fiber channel, CWDM, DWDM, FTTx, among others, rely on connectors such as LC, SC, MPO, and RJ-45 connectors. Leveraging different wavelengths such as long-range, extended-range, and short-range, these transceivers find application in data centers and telecommunications for their versatility and efficiency.

The optical transceiver market research report provides optical transceiver market statistics, including optical transceiver industry global market size, regional shares, competitors with an optical transceiver market share, detailed optical transceiver market segments, market trends and opportunities, and any further data you may need to thrive in the optical transceiver industry. This optical transceiver 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.

The optical transceiver market consists of sales of different rate optic transceivers such as 100GBase, 40GBase, 10GBase, 1000Base, and 100Base, in wave lengthens such as 850nm, 1310nm, and 1550nm. 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.


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