Global Optical Transceiver Market (2023 Edition): Analysis By Value and Volume, Transmitter Component Technology, Application (Datacom, Telecom), Data Rate, By Region, By Country: Market Insights and Forecast (2018-2028)
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What is Optical Transceiver?
Optical transceivers are small, yet highly powerful devices that transmit and receive data. In fibre optics, data is transmitted in pulses of light, travelling at very high speeds across extremely long distances. Optical transceivers play a key part in this fibre-optic network, converting electrical signals to light signals and vice-versa. They can be incorporated into network devices that can receive and transmit data.
Global Optical Transceiver Market Overview
The Global Optical Transceiver market showcased growth at a CAGR of 18.09% during 2018-2021. The market was valued at USD 10.34 Billion in 2021 which is expected to reach USD 38.89 Billion in 2028. The increasing investments in IT and increasing number of data centres are contributing to the overall growth of the Optical Transceiver market.
The Global Optical Transceiver Market is expected to grow in the forecast period and register a market value of USD 38.89 Billion in 2028 at a CAGR of 22.88% during the forecast period. The growing demand for usage of internet, rising demand for high-speed data transmission, and increasing demand for low-cost internet are major driving factors that are accelerating the overall market growth of the Global Optical Transceiver Market.
Fibre optical networks, enabled by improvements in optical transceivers, have effectively replaced the conventional copper cable network by enabling high bandwidth and low latency communication across cities. Implementation of 5G networks required high bandwidth fiber optical cable for secured and reliable data.
Increasing number of data center
With the growth of cloud computing, there is a greater demand for data storage and processing, which is leading to an increase in the number of data centers being built. Optical transceivers are essential components for enabling high-speed data communication within and between data center.
With advancements in technology more and more and data is being generated every day, and traditional copper-based communications links are no longer sufficient to handle this traffic. Optical transceiver offers much higher bandwidths and faster data transfer rates, making them ideal for use in data center applications.
Growing Global GDP Growth
As the global GDP grows, companies and organizations across various sectors such as telecommunications, data centers, healthcare, and military and defence among others, tend to invest more in technology infrastructure to support their operations.
For instance, with the increasing adoption of cloud computing and big data analytics, there is growing need for high-speed connectivity, which requires optical transceivers that can transmit data at rates of several gigabits per second (Gbps) or even terabits per second (Tbps).
Additionally, the proliferation of mobile devices and Internet of things (IOT) is driving the demand for high-speed data transmission over wireless networks, which further increase the demand for optical transceivers.
Segment-Wise Insights
The Datacom segment accounts for USD 5.46 Billion in 2021.
Data centre infrastructure, long-distance networks, and metro networks can now handle data speeds of 400G, 600G, 800G, and beyond thanks to the development of several technologies.
The deployment of 400GbE is increasing throughout data centre networks. To enhance bandwidth capacity and keep up with the rising demand for data, several cloud providers and telecom carriers are increasingly moving to the 800Gbps optical ecosystem. There are several configurations that 800G optical modules can handle, such as 2x 400GbE, 4x 200GbE, or 8x 100GbE.
Regional Insights
According to Azoth Analytics Estimates, the Asia Pacific accounts for the largest revenue share in 2021. The Asia Pacific area has emerged as a hub for significant investments and corporate growth on a worldwide scale. Asia markets support the advancement of 5G mobile technologies, with South Korea having already adopted them commercially and Japan and China having plans to do the same.
Additionally, Asia Pacific is a major manufacturer and supplier of electronic items, such as laptops, desktops, wearable technology, smart home security systems, game consoles, and smartphones which is boosting the demand for optical transceiver in the region.
Competitive Landscape
Global Optical Transceiver Market is fragmented with the top 5 companies accounting for a significant revenue share in the year 2021. Leading companies and brands in the market are executing different strategies and partnerships to strengthen their foothold and increase their competitiveness and product offerings in the market.
Coherent, Lumentum Holdings, Broadcom, Cisco Systems, and Sumitomo Electric Ltd. are the leading companies in the Global Optical Transceiver Market.
Leading companies in the Global Optical Transceiver Market include:
Coherent Corporation
Lumentum Holdings
Broadcom Inc.
Cisco System Inc.
Sumitomo Electric Ltd.
Intel Corporation
Arista Networks Inc.
NEC Corporation
ZTE Corporation
Juniper Network
Recent Developments in the Global Optical Transceiver Market
• April, 2023: Intel Foundry Services (IFS) and Arm make a deal that will let chip makers use the Intel 18A process to build low power compute systems on chips (SOCs). At first, the partnership will focus on designing SoCs for mobile devices. However, it also opens the door for future design work in the automotive, Internet of Things (IoT), data center, military, and government sectors.
• February, 2023: Valtix has been fully bought by Cisco. The company's job is to make network protection easier and protect cloud workloads. Valtix offers a cloud security platform for Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), and Oracle Cloud Infrastructure (OCI). This platform has features like a cloud-based firewall, web application firewall (WAF), intrusion detection systems (IDS) and intrusion prevention systems (IPS), egress filtering, and data loss prevention (DLP).
Segmentations in the Report
By Application
By Transmitter Component Technology
By Data Rate
By Region
Frequently Asked Questions
What is the expected market value of the Global Optical Transceiver Market in 2028?
Global Optical Transceiver Market is expected to be valued at USD 38.89 Billion in 2028.
At what growth rate is Global Optical Transceiver Market expected to grow in the forecast period?
During 2023-2028, Global Optical Transceiver Market is expected to grow at a CAGR of 22.88%.
Which Region dominates the Global Optical Transceiver Market?
Asia Pacific contributes the largest revenue share in the Global Optical Transceiver Market and is expected to continue in the forecast period as well.
Which are the leading companies in the Global Optical Transceiver Market?
The leading companies in Global Optical Transceiver Market are Coherent Corporation, Lumentum Holdings, Broadcom Inc., Cisco System Inc., Sumitomo Electric Ltd., Intel Corporation, Arista Networks Inc., ZTE Corporation, Juniper Network.
At what rate will China’s Global Optical Transceiver Market Grow?
During 2023-2028, China’s Global Optical Transceiver Market is expected to grow at a CAGR of 31.61%.
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