by Optical transceivers enable high-speed data transmission over fiber optic cables and are a critical component in various communication applications such as data centers, fiber-to-the-home (FTTH) networks, and cable television (CATV) networks. They convert electrical signals to optical signals and vice versa, allowing seamless transmission and reception of data. The increasing demand for high-speed internet connectivity across both residential and commercial applications is propelling the growth of fiber optic cable networks. This in turn is driving the demand for various types of optical transceivers including SFP, SFP+, XFP, CFP, QSFP, QSFP+, and other modules that support different communication protocols and speeds.
The global Optical Transceiver Market is estimated to be valued at US$ 13 Bn in 2024 and is expected to exhibit a CAGR of 3.5% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the optical transceiver market is the increasing adoption of 400G and above speeds. With the growth in data traffic and increasing demand for high-speed internet, there is a need to increase network bandwidth capacities. This is driving research and development towards higher speed optical transceiver modules capable of transmitting data at 400G and above per channel. Major market players are focusing on new product launches of 400GZR, 800G, and 1.6T modules to cater to this demand. For instance, in 2021, MultiLane launched the industry’s first 800G PAM4 optical transceiver modules. Similarly, Innolight launched 1.6T transceivers in 2022 capable of transmitting 1.6 terabits per second, becoming the highest density pluggable module available in the market. The increasing transition towards higher speeds is expected to be a major trend in the optical transceiver industry over the forecast period.
Porter’s Analysis
Threat of new entrants: Low manufacturing cost and established distribution channels create barriers for new companies to enter the optical transceiver market.
Bargaining power of buyers: Buyers have high bargaining power due to the presence of many vendors offering optical transceivers.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of component manufacturing companies.
Threat of new substitutes: No major threat of new substitutes exists currently in the optical communication market.
Competitive rivalry: The market experiences high competition due to the presence of key global and regional players.
Key Takeaways
The Global Optical Transceiver Market Size is expected to witness high growth. North America and Europe are expected to dominate the global optical transceiver market over the forecast period owing to the presence of established and developing telecommunication infrastructure in these regions.
Regional analysis :
Asia Pacific is projected to be the fastest growing region in the optical transceiver market during the forecast period. The growth of the market in Asia Pacific can be attributed to the rising internet penetration, growing broadband connectivity, and expanding fiber network in countries such as China and India.
Key players:
Key players operating in the optical transceiver market are Horizon Therapeutics Plc, Bausch Health Companies Inc, Recordati Rare Diseases Inc., Danone S.A., Lucane Pharma SA, Acer Therapeutics Inc., Ultragenyx Pharmaceutical Inc., Aeglea Biotherapeutics, Inc., Arcturus Therapeutics Holdings Inc., Orpharma Pty Ltd., Selecta Biosciences, Inc., Abbott, and Mead Johnson & Company, LLC. Horizon Therapeutics Plc offers transceivers for various networking applications including data centers.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
