Optical Transceiver Market Forecasts to 2028 - Global Analysis By Form (SFF & SFP, QSFP, CXP, CFP, XFP and Other Forms), Data Rate (Less Than 10 Gbps, 10 Gbps to 40 Gbps, 41 Gbps to 100 Gbps and More Than 100 Gbps), Fiber Type, Wavelength, Connector, Distance, Protocol, Application and By Geography
Estimated Year Value (2022)
US $9.84 BN
Projected Year Value (2028)
US $25.39 BN
CAGR (2022 - 2028)
North America, Europe, Asia Pacific, South America, and Middle East & Africa
US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa
Highest Growing Market
According to Stratistics MRC, the Global Optical Transceiver Market is accounted for $9.84 billion in 2022 and is expected to reach $25.38 billion by 2028 growing at a CAGR of 17.1% during the forecast period. Optical transceivers are strong and compact devices that can transmit and receive data. In optical networking and communication, data is sent as light pulses across an optical fiber. The transceiver, which is used to transform electrical impulses to light signals and vice versa, is a crucial component of such a network. The operation of the transceiver is based on optical pulses created by laser diodes and electric signals processed by signal decoders between the transmitter and receiver. There are many transceivers that may be used for various purposes depending on the sort of data to be conveyed as well as the speed and distance.
According to the United Nations, over 68% of the global population is estimated to live in urban areas by 2050, fueling smarter city projects globally.
Growing demand for cloud-based services
Data centre traffic has significantly increased in recent years as a result of the proliferation of cloud applications like machine learning (ML), artificial intelligence (AI), virtual reality (VR), and augmented reality (AR), as well as the transition of Ethernet to the 400GE/800GE era. Because cloud data centres are concentrating on increasing connectivity capacity, there is an increase in demand for optical transceivers. The infrastructure of the cloud computing network is widely acknowledged to be based on cloud data centres. The demand for optical transceivers is being further increased by these enormous cloud data centres. Thus, during the projected period, this is anticipated to fuel the growth of the global optical transceiver market.
Increase in network complexity
The core, distribution layer and the access layer are some of the layers that make up data centre networks. These layers are dispersed using transceivers. The receiver units of transceivers may encounter delayed data packet delivery because the switches at these levels are regularly overloaded with data traffic. To enable compatibility and free up more space inside the network, all of these considerations lead to a requirement for more compact form factors. The current network architecture is disjointed and prioritizes joint consumer-centric approaches above domain-specific growth. To reduce network complexity, which inhibits the expansion of the optical transceiver market, businesses must adopt a creative and network-oriented strategy.
Growing demand for digital services
Over the course of the projection period, the market for optical transceivers is expected to have a number of growth opportunities due to the continuously increasing demand for digital services. A key component of modern advanced civilisation is data communications. In order to meet the continuously increasing demand for digital services around the world, optical fibre networks have shown to be promising in carrying data over long distances and delivering at a massive scale. The ongoing need for data necessitates the creation of ultra-wide bandwidth optical amplifiers, modulators, and optical fibres, which are also necessary for the implementation of 5G. As a result, in the years to come, this is anticipated to present market participants with a lucrative opportunity.
Changing customer demands for portable devices and better speeds
Optical transceivers have made it possible for electrical devices to communicate with one another more effectively and transfer data at a faster rate. However, as sectors shift their emphasis to creating smaller, more portable devices, it becomes increasingly difficult for optical transceiver producers to keep up with the changing needs. The network's complexity and performance penalty can both be decreased by producing smaller components. The creation of new products and technologies drives the market, thus the producers of optical transceivers devote a certain portion of their profits to the research and development of the relevant technology. As a result of the uncertain life cycle of produced technology or products, all these aspects make it difficult to standardise from the application's point of view.
Many nations were afflicted by the COVID-19 epidemic, which led to the implementation of strict rules in some of those nations. Hardware manufacturers encountered manufacturing limitations as a result of the disrupted semiconductor supply chain and restrictions on international imports. Additionally, a number of vendors saw the pandemic's negative effects in the form of decreased sales. As a result, it is anticipated that throughout the forecast period, these unfavourable pandemic-related circumstances will restrain the expansion of the global optical transceiver market. However, once the pandemic scenario returns to normal, the market is likely to resume growing.
The single mode fiber segment is expected to be the largest during the forecast period
The single mode fiber segment is estimated to have a lucrative growth, due to the rising investment in undersea and long-distance network services. As a result, combining numerous signals for transmission across a single optical fibre enables the transfer of data over such vast distances. Furthermore, the demand for single-mode optical fibre cables will rise in response to the growing requirement for long-distance data transmission.
The telecommunication segment is expected to have the highest CAGR during the forecast period
The telecommunication segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the increase in urban cities desire for internet and connectivity access. With the demand for faster internet and improved connection, the telecommunications sector is expanding quickly, necessitating the use of effective and robust optic test equipment. As a result, the sector is anticipated to have significant growth in the near term.
Region with highest share:
Asia Pacific is projected to hold the largest market share during the forecast period. Asia Pacific is one of the developing markets for optical transceivers. The rising use of smartphones, an increase in internet users, rising connectivity, expanding network infrastructure, and an increase in high bandwidth-intensive applications are the main factors driving the expansion of the optical transceiver market share in the APAC region. The APAC area has evolved into a global hub for sizable investments and corporate growth.
Region with highest CAGR:
North America is projected to have the highest CAGR over the forecast period, owing to the rising use of cutting-edge technology like 5G networks, big data analytics, and cloud computing. The development of North American technology significantly contributes to the region's dominance in the optical transceiver industry. Through large expenditures in R&D, major enterprises in the area are also contributing significantly to the market growth. This area also has a number of important firms in the optical communication sector, as well as cutting-edge data centre infrastructure that supports market expansion.
Key players in the market
Some of the key players profiled in the Optical Transceiver Market include Broadcom, Sumitomo Electric Industries, Lumentum Holdings Inc, Accelink, Fujitsu Optical Components, Applied Optoelectronics, Innolight, Finisar Corporation, Reflex Photonics Inc, Juniper Networks Inc, ZTE Corporation, FOCI, Neophotonics, Cisco, Intel, Huawei, Perle Systems, Smartoptics, Source Photonics and Chengdu Shuhan Technology.
In December 2020, InnoLight demonstrated the industry’s first 800G pluggable OSFP 2xFR4, OSFP DR8 plus and QSFP-DD800 DR8 plus light modules via video at the ECOC2020 online show.
In October 2020, Fujitsu Optical Components expanded the portfolio of next-generation 400G pluggable coherent transceivers. The company announced the release of a 400G ZR+ transceiver that enabled coherent WDM transmission greater than 120 km (74.5 miles) in the same form factors (QSFP56-DD and OSFP) as its 400G ZR transceiver. Both these transceivers used advanced coherent technology to enable higher bandwidth capacity and lower cost per bit compared to 100G WDM technology.
In August 2020, Chengdu Shuhan Technology (China) and InnoLight joined hands together and announced four major application solutions at exhibit CIOE 2020. This included a comprehensive product line for interconnection within and between data centers; optimized solutions for 5G prequels, mid-pass and backhaul; coherent optical communication module; and improved market layout to provide access network high-speed optical device optical modules a full range of solutions.
• SFF & SFP
• Other Forms
Data rates Covered:
• Less Than 10 Gbps
• 10 Gbps to 40 Gbps
• 41 Gbps to 100 Gbps
• More Than 100 Gbps
Fiber Types Covered:
• Multi-mode Fiber
• Single-mode Fiber
• 850 nm Band
• 1310 nm Band
• 1550 nm Band
• Other Wavelengths
• Registered Jack - Type 45 (RJ45)
• Multi-Fiber Push On (MPO)
• Subscriber Connector (SC)
• Lucent Connector (LC)
• Other Connectors
• Less Than 1 Km
• 1 to 10 Km
• 11 to 100 Km
• More Than 100 Km
• Fiber Channel
• Dense Wavelength Division Multiplexing (DWDM)
• Coarse wavelength division multiplexing (CWDM)
• Other Protocols
• Data Center
• Other Applications
• North America
o Rest of Europe
• Asia Pacific
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
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All the customers of this report will be entitled to receive one of the following free customization options:
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• Competitive Benchmarking
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Table of Contents
1 Executive Summary
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
3 Market Trend Analysis
3.6 Application Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Optical Transceiver Market, By Form
5.2 SFF & SFP
5.7 Other Forms
6 Global Optical Transceiver Market, By Data Rate
6.2 Less Than 10 Gbps
6.3 10 Gbps to 40 Gbps
6.4 41 Gbps to 100 Gbps
6.5 More Than 100 Gbps
7 Global Optical Transceiver Market, By Fiber Type
7.2 Multi-mode Fiber
7.3 Single-mode Fiber
8 Global Optical Transceiver Market, By Wavelength
8.2 850 nm Band
8.3 1310 nm Band
8.4 1550 nm Band
8.5 Other Wavelengths
9 Global Optical Transceiver Market, By Connector
9.2 Registered Jack - Type 45 (RJ45)
9.3 Multi-Fiber Push On (MPO)
9.4 Subscriber Connector (SC)
9.5 Lucent Connector (LC)
9.6 Other Connectors
10 Global Optical Transceiver Market, By Distance
10.2 Less Than 1 Km
10.3 1 to 10 Km
10.4 11 to 100 Km
10.5 More Than 100 Km
11 Global Optical Transceiver Market, By Protocol
11.2 Fiber Channel
11.4 Dense Wavelength Division Multiplexing (DWDM)
11.5 Coarse wavelength division multiplexing (CWDM)
11.7 Other Protocols
12 Global Optical Transceiver Market, By Application
12.2 Data Center
12.5 Other Applications
13 Global Optical Transceiver Market, By Geography
13.2 North America
13.3.6 Rest of Europe
13.4 Asia Pacific
13.4.5 New Zealand
13.4.6 South Korea
13.4.7 Rest of Asia Pacific
13.5 South America
13.5.4 Rest of South America
13.6 Middle East & Africa
13.6.1 Saudi Arabia
13.6.4 South Africa
13.6.5 Rest of Middle East & Africa
14 Key Developments
14.1 Agreements, Partnerships, Collaborations and Joint Ventures
14.2 Acquisitions & Mergers
14.3 New Product Launch
14.5 Other Key Strategies
15 Company Profiling
15.2 Sumitomo Electric Industries
15.3 Lumentum Holdings Inc
15.5 Fujitsu Optical Components
15.6 Applied Optoelectronics
15.8 Finisar Corporation
15.9 Reflex Photonics Inc
15.10 Juniper Networks Inc
15.11 ZTE Corporation
15.17 Perle Systems
15.19 Source Photonics
15.20 Chengdu Shuhan Technology
List of Tables
1 Global Optical Transceiver Market Outlook, By Region (2020-2028) ($MN)
2 Global Optical Transceiver Market Outlook, By Form (2020-2028) ($MN)
3 Global Optical Transceiver Market Outlook, By SFF & SFP (2020-2028) ($MN)
4 Global Optical Transceiver Market Outlook, By QSFP (2020-2028) ($MN)
5 Global Optical Transceiver Market Outlook, By CXP (2020-2028) ($MN)
6 Global Optical Transceiver Market Outlook, By CFP (2020-2028) ($MN)
7 Global Optical Transceiver Market Outlook, By XFP (2020-2028) ($MN)
8 Global Optical Transceiver Market Outlook, By Other Forms (2020-2028) ($MN)
9 Global Optical Transceiver Market Outlook, By Data Rate (2020-2028) ($MN)
10 Global Optical Transceiver Market Outlook, By Less Than 10 Gbps (2020-2028) ($MN)
11 Global Optical Transceiver Market Outlook, By 10 Gbps to 40 Gbps (2020-2028) ($MN)
12 Global Optical Transceiver Market Outlook, By 41 Gbps to 100 Gbps (2020-2028) ($MN)
13 Global Optical Transceiver Market Outlook, By More Than 100 Gbps (2020-2028) ($MN)
14 Global Optical Transceiver Market Outlook, By Fiber Type (2020-2028) ($MN)
15 Global Optical Transceiver Market Outlook, By Multi-mode Fiber (2020-2028) ($MN)
16 Global Optical Transceiver Market Outlook, By Single-mode Fiber (2020-2028) ($MN)
17 Global Optical Transceiver Market Outlook, By Wavelength (2020-2028) ($MN)
18 Global Optical Transceiver Market Outlook, By 850 nm Band (2020-2028) ($MN)
19 Global Optical Transceiver Market Outlook, By 1310 nm Band (2020-2028) ($MN)
20 Global Optical Transceiver Market Outlook, By 1550 nm Band (2020-2028) ($MN)
21 Global Optical Transceiver Market Outlook, By Other Wavelengths (2020-2028) ($MN)
22 Global Optical Transceiver Market Outlook, By Connector (2020-2028) ($MN)
23 Global Optical Transceiver Market Outlook, By Registered Jack - Type 45 (RJ45) (2020-2028) ($MN)
24 Global Optical Transceiver Market Outlook, By Multi-Fiber Push On (MPO) (2020-2028) ($MN)
25 Global Optical Transceiver Market Outlook, By Subscriber Connector (SC) (2020-2028) ($MN)
26 Global Optical Transceiver Market Outlook, By Lucent Connector (LC) (2020-2028) ($MN)
27 Global Optical Transceiver Market Outlook, By Other Connectors (2020-2028) ($MN)
28 Global Optical Transceiver Market Outlook, By Distance (2020-2028) ($MN)
29 Global Optical Transceiver Market Outlook, By Less Than 1 Km (2020-2028) ($MN)
30 Global Optical Transceiver Market Outlook, By 1 to 10 Km (2020-2028) ($MN)
31 Global Optical Transceiver Market Outlook, By 11 to 100 Km (2020-2028) ($MN)
32 Global Optical Transceiver Market Outlook, By More Than 100 Km (2020-2028) ($MN)
33 Global Optical Transceiver Market Outlook, By Protocol (2020-2028) ($MN)
34 Global Optical Transceiver Market Outlook, By Fiber Channel (2020-2028) ($MN)
35 Global Optical Transceiver Market Outlook, By Ethernet (2020-2028) ($MN)
36 Global Optical Transceiver Market Outlook, By Dense Wavelength Division Multiplexing (DWDM) (2020-2028) ($MN)
37 Global Optical Transceiver Market Outlook, By Coarse wavelength division multiplexing (CWDM) (2020-2028) ($MN)
38 Global Optical Transceiver Market Outlook, By FTTx (2020-2028) ($MN)
39 Global Optical Transceiver Market Outlook, By Other Protocols (2020-2028) ($MN)
40 Global Optical Transceiver Market Outlook, By Application (2020-2028) ($MN)
41 Global Optical Transceiver Market Outlook, By Data Center (2020-2028) ($MN)
42 Global Optical Transceiver Market Outlook, By Telecommunication (2020-2028) ($MN)
43 Global Optical Transceiver Market Outlook, By Enterprise (2020-2028) ($MN)
44 Global Optical Transceiver Market Outlook, By Other Applications (2020-2028) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
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