Optical Transceiver Market

Optical Transceiver Market Size, Share, Growth (2023-2028)

Optical Transceiver Market USD 11.14 billion by 2028 from USD 5.09 billion in 2023, recording a CAGR of 13.46% during the projection period.

Optical Transceiver Market overview:

Optical transceivers are integrated circuit chip (IC) that transmits & receives data through the fiber optic cable instead of an electrical wire. A fiber optic cable can carry the high speed and large volumes of data in an efficient way by using light beams and pulses along with reliable, transparent wires. Specialized semiconductor materials like indium phosphide and gallium arsenide are used to make an optical transceiver, which is smaller in size and consumes a negligible amount of power.These optical transceivers play an essential role in the efficient functioning of the networks. The reduced prices of transport of the data over the web are the primary reason for the growth of the optical transceiver market, all around the world. Also, because of its reduced maintenance cost, the adoption rate of optical transceivers compared to the other conventional transceiver devices is growing. The ability to support the large bandwidth, which is an essential need in the network infrastructure that demands high speeds like the broadband internet connections, is a crucial advantage. And the other benefits of employing these optical transceivers include that they update the data center networks & the communication networks and improve traffic management by enhancing the speed limit. In mobile communication networks, these optical networks play a vital role. The growth of the popularity of the target market is attributed to the rising demand for high speed and reliable mobile communication networks.

Recent Developments

• Applied Optoelectronics, Inc., a leading provider of fiber-optic access network products, has announced the release of their high power and narrow linewidth laser, which are designed for the Light Detection and Ranging (LIDAR) applications, majorly for automotive use.

• Sumitomo Electric Industries, a major player of the optical transceiver market, is now developing its part of the project for building offshore wind farms off Akita Port and Noshiro Port in Akita Prefecture–the first large-scale commercial offshore wind project in Japan.

Optical Transceiver Market Drivers and Restraints

Increasing penetration of internet & data traffic, growing demand for smartphones & other connecting devices along with the increased adoption of cloud computing are the major drivers for the growth of the global optical transceiver market. Also, the growth of this internet penetration traffic is resulting in the higher adoption, and a rise in sales of optic fiber cables owing to which there is a need for these optical transceivers is assumed to lead to the growth of the target market over the forecast period.However, the expense factor that was involved while deploying these optical networks is a significant factor that was hampering the optical transceiver market's growth.

Optical Transceiver Market Segmentation

By Form Factor

• SFF & SFP

• SFP+ & SFP28

• QSFP

• QSFP+QSFP14

• QSFP28

• CFP, CFP2

• CFP4

• XFP

• CX

By Wavelength

• 850 nm Band

• 1310 nm Band

• 1550 nm Band

• Other850 nm Band

• 1310 nm Band

• 1550 nm Band

By Data Rates

• Less Than 10 Gbps

• 10 Gbps to 40 Gbps

• 41 Gbps to 100 Gbps

• More Than 100 Gbps

By Type

• Single-mode

• Multi-mode

By Distance

• Less than 1Km

• 1 Km to 10 Km

• 11 Km to 100 Km

• More Than 100 Km

By Connector

• LC

• SC

• MPO

• RJ-45

By Application

• Telecommunication

• Data Center

• Enterprise

Optical Transceiver Market Regional Analysis:

• North America

• Europe

• Asia-Pacific

• South America

• Middle East & Africa

In the regional analysis of the Global Optical Transceiver Market, North America held a significant share of the target market's revenue. The growth of the business in this region is attributed to the presence of developed countries like the U.S. and is also expected to continue its dominance during the outlook period.

The optical transceiver market in the Asia Pacific region is anticipated to grow at a higher CAGR over the forecast period. This growth of the market owes to the increasing demand for these networks from emerging economies such as China and India.

Optical Transceiver Market Key Players

1. FIT Hong Teng Limited (Taiwan)

2. Lumentum (US)

3. Sumitomo Electric Industries Ltd (Japan)

4. Accelink (China)

5. Applied Optoelectronics (US)

6. Fujitsu Optical Components (Japan)

7. Innolight (China)

8. Mellanox (Israel)

9. NeoPhotonics (US), Ciena (US)

10. Cisco (US)

11. Hisense Broadband (China)

12. Intel (US)

13. NEC (Japan)

14. Perle Systems (Canada)

15. Reflex Photonics (Canada)

16. Smartoptics (Norway)

17. Solid Optics (US)

18. Source Photonics (US)