Optical Transceivers Market - Forecasts from 2023 to 2028

The global optical transceivers market is estimated to be valued at US$7.671 billion in 2021.

GROWTH DRIVERS:

GROWING INVESTMENTS IN 5G BASE STATIONS

The demand for optical communication network equipment is expected to increase due to expanding 5G technology and the growing deployment of 5G base stations. Optical fiber networks help transmit data over longer distances and deliver it on an enormous scale. Hence, investments in deploying 5G base stations are also expected to drive market growth for the optical transceiver market. For instance,

• In 2020, Ericsson delivered the USA’S first 5G base station to Verizon (among the country's three main 5G telecom operators). The base station was manufactured in Ericsson’s new 5G production factory, which was established in Texas. Ericsson’s smart factory is expected to bring the 5G revolution to the country.
• In July 2020, Qualcomm announced an investment of $ 97.1 million in India’s Jio Platform. The acquisition was undertaken to roll out advanced 5G infrastructure and services for the Indian audience.

EMERGING OPPORTUNITIES IN THE GLOBAL OPTICAL TRANSCEIVERS MARKET

NRZ

The 5g optical transceiver is segmented by modulation format into NRZ, PAM4, and hybrid. Due to growing investments and partnerships, NRZ is expected to hold a major proportion during the anticipated period. For instance

Coherent Optical Transceivers

By technology, the 5G optical transceiver is divided into coherent and direct detection optical transceivers. With the exponential increase of cloud computing, internet, and mobile networks, there is an increasing need for high-speed, low-energy-consumption optical communication components. Furthermore, the growing number of product launches by companies and the rising developments in their existing product portfolio is anticipated to surge the demand for the coherent optical transceiver market.

GEOGRAPHICAL PRESENCE

The global optical transceivers market comprises major countries undertaking various measures to secure their 5G network. Some major countries include the USA, Japan, South Korea, Spain, China, Switzerland, and Germany. The countries have undertaken various measures, complementing the overall market growth. For instance,

• In November 2022, BB Backbone Corp. completed an IP over DWDM transmission experiment, employing 400ZR transceivers in an established commercial network environment linking with their Tokyo POPs and Fuchu Data Center. To confirm this experiment, ARISTA 400ZR and Arista 7280R3 series routers were used to connect data centers in Tokyo and IDC Frontier's Tokyo Fuchu Data Center through two additional sites, with data transmission of 80 km to 90 km.
• In March 2023, OES Solutions introduced two new Digital Coherent Optical (DCO) transceiver modules for access network applications, namely the 100G/200G CFP2 DCO and 100G QSFP-DD DCO, both of which have an EDFA booster amplifier and an adjustable optical filter. The C-band adjustable DWDM modules are displayed at OE Solutions' stand during OFC 2023 in San Diego, California (USA).
• In September 2022, Source Photonics launched a range of 25G and 50G PON optical network unit (ONU) and optical line terminal (OLT) optical transceivers at the ECOC 2022 event in Basel, Switzerland.

MAJOR PLAYERS IN THE MARKET:

Some of the leading players in the market include Nokia, Keysight Technologies, Anritsu, and Cisco among others. These firms have undertaken various business strategies such as product launches, investments, and partnerships to expand their product offerings. For instance,

• In May 2020, Nokia launched its WaveFabric Elements range of photonic chips, devices, and subsystems, which includes the Photonic Service Engine V, a fifth-generation coherent digital signal processor family (PSE-V).
• In May 2020, Keysight Technologies unveiled the Ixia AresONE 400GE High Performance, a low-cost test solution that enables data center operators to use 400 Gigabit Ethernet (GE) enabled test ports to connect to and test older 100GE network equipment. The new test solution is based on connecting PAM4 signaling to 100GE non-return-to-zero (NRZ) networking equipment ports through Credo's HiWire Active Electrical Cable (AEC) technology. It also supports signaling rate speed-shifting and forward error correction (FEC) conversions
• In September 2021, Fibermall officially announced the release of 50G SFP56 FR/LR transceivers for 5G fronthaul transmission systems at the 2021 China International Optoelectronic Exposition and conducted a product performance solution by giving a live demonstration. It includes 50G PAM4 modulation techniques for optical signals and 1x50G PAM4 with 2x25G NRZ as modulation techniques for electrical signals.
• In June 2022, FiberMall introduced a DWDM system based on the QSFP-DD-400G-DCO-ZR/ZR+ coherent transceiver. This approach inserts 400G ZR/ZR+ coherent transceivers on the switch and achieves DCI DWDM transmission via optical layer transmission. The use of this solution will aid in reducing the network complexity of data center interconnection (DCI), increase transmission system reliability, realize high-capacity transmission, and lower system power consumption and cost. This product has DCI, 5G backhaul applications, edge networks, MAN, and other areas.
• In September 2022, InnoLight's first 100G QSFP-DD optical module portfolio for 5G backhaul and aggregation applications was launched by Marvell and InnoLight. The new InnoLight coherent module family, which is driven by the Marvell DenebTM Coherent DSP, is the latest cooperation in the businesses' long-standing strategic relationship to deliver revolutionary optical transceivers in a variety of form factors to the market.
• In March 2023, Coherent Corp., a leader in optical communication system components and subsystems, announced that it would demonstrate an optical transceiver module able to operate at 200 Gbps per optical channel and an optical multimode at 50 Gbps NRZ at OFC. These pluggable and co-packaged modules represent the data networking industry's next generation of 800 Gbps and 1.6 Tbps optical modules in single-mode and multimode applications.

MARKET SEGMENTATION:

The global optical transceivers market has been analyzed through the following segments:

By Modulation Format

• NRZ
• PAM4
• Hybrid (NRZ/PAM4)

By Data Rate

• < 100G
• 100G
• 200G
• 400G

By Technology

• Direct detection
• Coherent

By Geography

• Americas
• United States
• Others
• Europe, the Middle East, and Africa
• Germany
• UK
• Others
• Asia Pacific
• China
• Japan
• South Korea
• Others