Optical Transceiver Market

Optical Transceiver Market Outlook – 2030

The global optical transceiver market size was valued at $7.18 billion in 2020, and is projected to reach $27.25 billion by 2030, registering a CAGR of 15.1% from 2021 to 2030. 

The data center segment has been positively impacted by the COVID-19 pandemic outbreak.

Optical transceiver is a powerful, small device that can transmit as well as receive data. In optical communication and networking, data is sent via an optical fiber in the form of pulses of light. The transceiver is an important part of such network, as it is used to convert electrical signals to light signals and vice versa. Depending on the type of data to be transported as well as the speed and distance, various transceivers are available for different tasks.

Surge in data traffic due to increased internet usage acts as the prime factor that drives the growth of the optical transceiver industry. Furthermore, increase in number of data centers accelerates the optical transceiver market growth rapidly. Moreover, increase in demand for advanced network equipment due to COVID-19 pandemic, which is opportunistic for the market growth. 

Increase in deployment of VoIP, LTE, and 5G networks is expected to notably contribute toward the expansion of the optical transceiver market. However, high investment associated with optical cable networking act as a major restraint of the optical transceiver market growth. On the contrary, rise in adoption of AI and IoT is expected to offer remunerative opportunities for expansion of the market during the forecast period. 

COVID-19 Impact Analysis 

The global optical transceiver industry has been significantly impacted by the COVID-19 outbreak. The production facilities of the electronics and semiconductors industries were halted, owing to the slowdown and unavailability of the workforce across the globe. COVID-19 outbreak has caused a significant and protracted drop in manufacturing capacity, owing to unavailability of workers and raw materials, travel bans, and facility closures led to slowdown in the growth of the optical transceiver market in 2020.

Segment Overview

The global optical transceiver market is segmented into form factor, data rate, fiber type, distance, wavelength, connector, application, and region. On the basis of form factor, the market is fragmented into SFF, SFP, QSFP, CFP, XFP, and CXP. The QSFP segment dominated the market, in terms of revenue in 2020, and is expected to follow the same trend during the forecast period. By data rate, the market is segregated into less than 10 Gbps, 10 Gbps to 40 Gbps, 41 Gbps to 100 Gbps, and more than 100 Gbps. The more than 100 Gbps segment was the highest revenue contributor in 2020, and is anticipated to garner significant market share during the forecast period. Depending on fiber type, the market is bifurcated into single mode fiber and multimode fiber. 

The market share for the single mode fiber segment was highest in 2020, however, the multimode fiber is expected to grow at a high CAGR from 2021 to 2030. As per distance, the market is segregated into less than 1 km, 1-10 km, 11-100 km, and more than 100 km. The market share for the 11-100 km segment was the highest in 2020, while the more than 100 km segment is expected to grow at the highest CAGR from 2021 to 2030.

According to wavelength, the market is fragmented into 850 nm band, 1310 nm band, 1550 nm band, and others. The 1310 nm band segment dominated the market, in terms of revenue, in 2020, and is expected to follow the same trend during the forecast period. On the basis of connector, the market is differentiated into LC connector, SC connector, MPO connector, and RJ-45. The LC connector segment dominated the market, in terms of revenue in 2020, and is anticipated to witness significant market share during the forecast period. The applications covered in the study include telecommunication and data center. The market share for the telecommunication segment was highest in 2020, whereas the data center is expected to grow at a high CAGR from 2021 to 2030.

Region wise, the optical transceiver market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and Rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). The North America optical transceiver market is expected to grow at the highest rate during the forecast period. 

Top Impacting Factors

Significant factors that impact growth of the optical transceiver market include increase in number of data centers, surge in data traffic due to increased internet usage, and increase in demand for advanced network equipment due to COVID-19 pandemic. However, high investment associated with optical cable networking hampers the market growth. On the contrary, rise in adoption of AI & IoT and increase in deployment of VoIP, LTE, and 5G networks are expected to offer lucrative opportunities for the expansion of the optical transceiver market during the forecast period.

Competitive Analysis

Competitive analysis and profiles of the major optical transceiver market players, such as Arista Networks Inc., Broadcom Inc., Cisco Systems, Inc., Fujitsu Optical Components Limited, and Huawei Technologies Co. Ltd., Juniper Networks, Inc., Lumentum Operations LLC, NEC Corporation, Sumitomo Electric Industries Ltd., and ZTE Corporation are provided in this report. These key players have adopted strategies, such as product portfolio expansion, mergers & acquisitions, agreements, regional expansion, and collaboration, to enhance their market penetration.

Key Benefits for Stakeholders

• This study comprises analytical depiction of the optical transceiver market along with the current trends and future estimations to depict the imminent investment pockets.
• The overall optical transceiver market analysis is determined to understand the profitable trends to gain a stronger foothold.
• The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
• The current optical transceiver market forecast is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the market.
• The report includes the optical transceiver market share of key vendors and market trends.

 Optical Transceiver Market Report Highlights