PUBLISHER: The Business Research Company | PRODUCT CODE: 1668472
PUBLISHER: The Business Research Company | PRODUCT CODE: 1668472
An optical transceiver serves as a compact and potent interconnect device vital for transmitting and receiving data in the form of light pulses across optical fibers within optical networking and communication setups. Capable of operating at high speeds and traversing extensive distances, it facilitates the conversion of electrical impulses into optical signals and vice versa.
Two primary types of optical transceivers exist such as single-mode fiber and multimode fiber. A single-mode fiber transceiver, contained within an optical module, manages data transmission over single-mode optical fiber cables. This allows for high-bandwidth signal transmission across extensive distances. Diverse protocols such as Ethernet, fiber channel, CWDM, DWDM, FTTx, among others, rely on connectors such as LC, SC, MPO, and RJ-45 connectors. Leveraging different wavelengths such as long-range, extended-range, and short-range, these transceivers find application in data centers and telecommunications for their versatility and efficiency.
The optical transceiver market research report is one of a series of new reports from The Business Research Company that provides optical transceiver market statistics, including optical transceiver industry global market size, regional shares, competitors with an optical transceiver market share, detailed optical transceiver market segments, market trends and opportunities, and any further data you may need to thrive in the optical transceiver industry. This optical transceiver market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The optical transceiver market size has grown rapidly in recent years. It will grow from$11.29 billion in 2024 to $12.81 billion in 2025 at a compound annual growth rate (CAGR) of 13.4%. The growth in the historic period can be attributed to Internet expansion, bandwidth demand, upgrade to higher data rates, telecommunication network upgrades, fiber optic network deployments, and data center expansion
The optical transceiver market size is expected to see rapid growth in the next few years. It will grow to $23.76 billion in 2029 at a compound annual growth rate (CAGR) of 16.7%. The growth in the forecast period can be attributed to a focus on energy efficiency, advancements in silicon photonics, expansion of smart cities, global increase in broadband access, enhanced security, and encryption requirements. Major trends in the forecast period include pluggable optical modules, advancements in optical connectivity, wavelength division multiplexing (WDM), long-reach and metro networks, and edge computing deployments.
Rising data traffic is anticipated to drive the growth of the optical transceiver market. Data traffic, or network traffic, refers to the amount of data moving across a computer network at any given time, divided into packets and sent over the network before being reassembled by the receiving device. Optical transceivers are essential in high-data-traffic settings for transmitting and receiving data between networks. For instance, in 2023, Priori Data GmbH, a German data analytics firm, reported an increase in mobile traffic share, rising from 35.53% to 46.11% in 2023. Thus, the growth in data traffic is fueling the expansion of the optical transceiver market.
The increasing adoption of 5G networks is projected to drive growth in the optical transceiver market. As the fifth generation of cellular technology, 5G provides significantly faster speeds, lower latency, and greater capacity than previous generations. Optical transceivers are essential components in 5G infrastructure, supporting the high-speed, low-latency transmission of large data volumes. For example, the GSM Association, a UK-based organization that unites the mobile ecosystem, reported in March 2022 that global 5G connections were expected to reach 1 billion by 2022, with projections rising to 2 billion by 2025. Consequently, the growing adoption of 5G is fueling the expansion of the optical transceiver market.
Technological advancements are a prevailing trend shaping the optical transceiver market. Companies in this sector prioritize innovation to enhance product capabilities and maintain market presence. For instance, in March 2023, Quantifi Photonics introduced the O-band Coherent Optical Receiver and VISIQ Coherent Signal Analysis Software. Their O-band receiver leverages coherent optical tech for cost-effective and energy-efficient data transfer between distant data centers.
Leading companies in the optical transceiver market are focusing on developing innovative products, such as hot-pluggable optical transceivers, to strengthen their competitive advantage. A hot-pluggable optical transceiver allows insertion or removal from a network device without needing to power down the device. For instance, in 2023, Gigalight, a China-based optical communications company, introduced the GIGALIGHT 32GFC SFP28 ER optical transceiver module, designed for use in data center storage area networks (SANs). This high-performance module supports a data rate of 32 Gbps for Fibre Channel applications and can cover distances up to 30 km over single-mode fiber, making it ideal for long-distance connections in data centers.
In August 2022, Lumentum Holdings Inc., a US-based investment firm that designs and manufactures innovative optical and photonic products, acquired NeoPhotonics Corporation for an undisclosed amount. This acquisition aims to create the digital transformation of work and life, which is driving relentless growth in the volumes and performance of cloud and network infrastructure. NeoPhotonic Corporation is a US-based designer and manufacturer of advanced hybrid photonic integrated optoelectronic modules and subsystems, and optical transceivers.
Major companies operating in the optical transceiver market include Coherent Corp., Accelink Technology Co. Ltd., Huawei Technologies Co. Ltd., Broadcom Inc., Source Photonics Inc., Hisense Broadband Inc., Juniper Networks Inc., Cisco Systems Inc., Fujitsu Optical Components Limited, Lumentum Holdings Inc., Sumitomo Electric Industries Ltd., Perle Systems, Fiber Optic Communications Inc., Arista Networks Inc., ZTE Corporation, Applied Optoelectronics Inc., Infinera Corporation, Intel Corporation, InnoLight Technology Co. Ltd., Hisilicon, Eoptolink Technology, Molex LLC, NeoPhotonics Corporation, HUBER+SUHNER Cube Optics AG, NADDOD Pte. Ltd., Reflex Photonics Inc., Oclaro Inc., Finisar Corporation, Acacia Communications Inc., Ciena Corporation
North America was the largest region in the optical transceiver market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global optical transceiver market during the forecast period. The regions covered in the optical transceiver market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the optical transceiver market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The optical transceiver market consists of sales of different rate optic transceivers such as 100GBase, 40GBase, 10GBase, 1000Base, and 100Base, in wave lengthens such as 850nm, 1310nm, and 1550nm. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Optical Transceiver Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on optical transceiver market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for optical transceiver ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The optical transceiver market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.