The Optical Transceiver Market is estimated to be valued at US$ 11.28 Bn or Mn in 2023 and is expected to exhibit a CAGR of 12.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Optical transceivers are devices that transmit and receive information in the form of optical signals over optical fiber. They play a vital role in fiber-optic communication systems used across various industries including telecommunication, data center, and storage area networks. Major product types include SFP, SFP+, QSFP, QSFP+, OSFP and more. They are used for Ethernet connectivity, InfiniBand, Fibre Channel connectivity applications among enterprises and data centers.
Market Dynamics:
Increasing deployment of 5G infrastructure globally is a major factor driving the growth of optical transceiver market. 5G network requires extensive fiber connectivity to establish high speed broadband access network and mobile edge computing infrastructure. This is fueling the demand for optical transceivers across telecom sector. Additionally, rising investments in construction of hyperscale data centers worldwide is also boosting the adoption of optical transceivers for intra and inter data center connectivity. Rapid growth in data traffic and data center IP traffic is propelling data center operators to increase their storage capacity and server density which in turn is driving the optical transceiver market.
Segment Analysis
The optical transceiver market consists of two major segments – optical transceiver modules and optical transceivers. Optical transceiver modules dominate the market as it can enable plug-and-play functionality and hot-swappable capability in data centers. The modules help in reducing troubleshooting efforts and enables easy replacement of components.
PEST Analysis
Political: The demand for increased network bandwidth and data communication is driving governments across the world to focus on digitalization initiatives. This is positively impacting the optical transceiver market.
Economic: Optical transceivers offer cost-effective high-speed data transfer. This makes them an economical solution for network infrastructure upgrades and expansion plans of various industries.
Social: Rising internet penetration, growth of OTT platforms, and increasing data usage are propelling the need for advanced networking infrastructure. This is fueling the optical transceiver market.
Technological: Advancements in connectivity technologies such as 5G and cloud computing are promoting innovations in optical components. Emerging technologies like 100G and 400G Ethernet are assisting faster communication.
Key Takeaways
The Global Optical Transceiver Market Growth is expected to witness high, exhibiting 12% CAGR over the forecast period, due to increasing demand for high-speed data transmission from 5G implementation and rising internet traffic. Asia Pacific dominates the market and is expected to grow at the fastest rate due to rapid digital transformation, growing investments into network infrastructure by telecom operators, and expansion of hyperscale data centers in China and India.
Key players operating in the optical transceiver market include HUBER+SUHNER, Cube Optics AG, II-VI Incorporated, Broadcom Inc., Accelink Technologies, Huawei Technologies Co. Ltd., Lumentum Operations LLC (Lumentum Holdings), Source Photonics (Redwood Capital), Sumitomo Electric Industries Ltd., Reflex Photonics Inc., and Fujitsu Optical Components Limited. Huawei and II-VI Incorporated capture a major share due to their extensive product portfolio and widespread geographical presence.
Regional analysis
Asia Pacific is projected to grow at the highest CAGR during the forecast period. This is attributed to the rising fiber optic communication networks, increasing investments by governments in digital connectivity projects, and rapid industrialization. China dominates the regional market and is expected to continue its dominance due to the expansion of hyperscale data centers and 5G deployment.
Key players related content
Key players operating in the optical transceiver market include HUBER+SUHNER, Cube Optics AG, II-VI Incorporated, Broadcom Inc., Accelink Technologies, Huawei Technologies Co. Ltd., Lumentum Operations LLC (Lumentum Holdings), Source Photonics (Redwood Capital), Sumitomo Electric Industries Ltd., Reflex Photonics Inc., and Fujitsu Optical Components Limited. Huawei and II-VI Incorporated capture a major share due to their extensive product portfolio and widespread geographical presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it