The global Optical Transceiver Market is estimated to be valued at US$ 11.28 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.
The optical transceiver market refers to the devices that are used to transmit and receive data signals over fiber optic cables. Optical transceivers convert electrical signals into optical signals and vice versa. They consist of laser diodes to transmit data and photodiodes to receive data. Optical transceivers provide various benefits such as high-speed data transmission, long transmission distances, immunity to interference, and lower power consumption. They find widespread applications in the telecommunication sector for fiber-to-the-home (FTTH) broadband services, 5G wireless networks, and data centers. The increasing demand for higher bandwidth and faster data transmission is boosting the adoption of optical transceivers.
Market key trends:
One of the key trends in the optical transceiver market is the increasing deployment of 5G networks. 5G networks require high-speed transmission and capacity to support technologies such as augmented reality and autonomous vehicles. This is driving the demand for advanced optical transceivers with breakthrough capabilities. Manufacturers are focusing on developing pluggables and coherent transceivers to support high data rates of 5G networks. Furthermore, the growing adoption of artificial intelligence, Internet of Things, and cloud computing is augmenting the need for data center expansions. Data centers heavily rely on optical networks and transceivers for connectivity and data transmission, thus supporting the market growth.
Threat of new entrants: The optical transceiver market requires high research and development costs for new technologies which poses a barrier for new companies. Bargaining power of buyers: Buyers have moderate bargaining power as there are many established players providing optical transceiver solutions. Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of component manufacturing resources. Threat of new substitutes: There are limited substitutes for optical transceivers used in fiber optic communication systems. Competitive rivalry: Established players compete on the basis of technological innovations and quality.
The Global Optical Transceiver Market Demand is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing demand for high bandwidth and rise in fiber optic communication networks.
The Asia Pacific region is expected to dominate the optical transceiver market during the forecast period. This is attributed to factors such as growing internet connectivity, increasing adoption of 5G technology, and expansion of fiber optic communication networks 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 Technologies Co. Ltd. and II-VI Incorporated are anticipated to be the leading players in the optical transceiver market.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it