ZR+ Coherent-Optics Global Market Report 2025

The ZR+ coherent-optics market size has grown rapidly in recent years. It will grow from $1.55 billion in 2024 to $1.84 billion in 2025 at a compound annual growth rate (CAGR) of 19%. The growth during the historic period can be attributed to rising demand for high-capacity data transmission, increasing deployment of long-haul optical networks, growing need for bandwidth in telecommunication services, higher adoption of cloud-based applications, and expanding internet traffic from video streaming platforms.

The ZR+ coherent-optics market size is expected to see rapid growth in the next few years. It will grow to $3.65 billion in 2029 at a compound annual growth rate (CAGR) of 18.7%. The growth during the forecast period can be attributed to increasing demand for cost-efficient data center interconnect, higher adoption of edge computing infrastructure, growing preference for energy-efficient optical solutions, expanding need for scalable metro network capacity, and rising enterprise adoption of hybrid cloud environments. Key trends in the forecast period include advancements in coherent DSP architectures, innovation in pluggable optical transceivers, investment in high-speed optical interconnect research, developments in open optical networking standards, and innovation in low-power coherent optics designs.

The growing demand for high-bandwidth connectivity is expected to drive the expansion of the ZR+ coherent-optics market. High-bandwidth connectivity refers to internet connections capable of significantly faster data transmission speeds, which are crucial for supporting data-heavy applications and services. The demand for such connectivity is rising due to the rapid increase in internet usage, with more people requiring faster, more reliable connections for remote work, streaming, cloud services, and emerging technologies. ZR+ coherent-optics meets these needs by enabling 400 Gbps data transmission over long distances, up to 80 kilometers, providing the high-speed optical communication infrastructure necessary to handle the growing bandwidth demands in data centers and telecommunications networks. For example, in November 2024, the UK Parliament’s House of Commons Library reported that, as of January 2024, 78% of UK premises had access to gigabit-capable broadband, up from 72% in 2023, 64% in 2022, and 36% in 2021. This growth in broadband access is fueling the demand for high-bandwidth connectivity, thereby driving the growth of the ZR+ coherent-optics market.

Companies in the ZR+ coherent-optics market are also focusing on advancing technologies such as indium phosphide (InP) chip technology to enhance optical performance, extend transmission reach, reduce power consumption, and enable higher-capacity pluggable modules for data centers and telecom networks. Indium phosphide is a compound semiconductor material used to create high-speed, low-loss optical components, facilitating higher data rates, longer transmission distances, and lower power usage in coherent optical modules. For instance, in March 2025, Coherent Inc., a U.S.-based manufacturer, launched its 800G ZR/ZR+ transceiver in the QSFP-DD form factor, powered by an in-house IC-TROSA optical engine based on InP chip technology. This module supports transmission distances of over 500 km in ZR mode and beyond 1000 km in ZR+ mode, enabling high-capacity, energy-efficient pluggable solutions for metro, regional, and data center interconnect networks. It eliminates the need for external amplifiers and tunable filters, simplifying deployment and reducing the total cost of ownership for operators. The solution also leverages Coherent’s expertise in 400G coherent optics to provide a smooth migration path for service providers and address the growing demand for scalable bandwidth and IP-over-DWDM architectures in next-generation optical networks.

In July 2022, II-VI Incorporated, a U.S.-based semiconductor manufacturing company, acquired Coherent Inc. for an undisclosed amount. The acquisition combined the strengths of both companies in materials and laser systems, with the goal of creating a global leader in advanced technologies. This collaboration is expected to drive innovations in emerging applications such as 3D sensing, electric vehicles, and space commercialization, while delivering cutting-edge solutions that transform industries, empower customers, and contribute to a more connected, sustainable, and technologically advanced future. Coherent Inc. specializes in providing advanced optics and laser technologies.

Major players in the ZR+ coherent-optics market are Huawei Technologies Co. Ltd., Cisco Systems Inc., Sumitomo Electric Industries Ltd., Fujitsu Limited, NEC Corporation, Nokia Corporation, ZTE Corporation, Marvell Technology Inc., Arista Networks Inc., Juniper Networks Inc., Ciena Corporation, II-VI Incorporated, Lumentum Holdings Inc., Ribbon Communications Inc., Accelink Technologies Co. Ltd., ADTRAN Networks SE, Cambridge Industries Group (CIG), Eoptolink Technology Co. Ltd., FS.COM LIMITED, EFFECT Photonics Ltd.

North America was the largest region in the ZR+ coherent-optics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in ZR+ coherent-optics report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

The ZR+ coherent-optics market research report is one of a series of new reports that provides ZR+ coherent-optics market statistics, including ZR+ coherent-optics industry global market size, regional shares, competitors with the ZR+ coherent-optics market share, ZR+ coherent-optics market segments, market trends, and opportunities, and any further data you may need to thrive in the ZR+ coherent-optics industry. This ZR+ coherent-optics 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.

ZR+ coherent-optics is an advanced optical transmission technology designed to provide high-capacity data transport across metro and regional distances using coherent detection and digital signal processing. It allows efficient long-haul connectivity by supporting higher data rates while reducing power consumption and simplifying network architecture. The technology is deployed in pluggable optical modules, offering scalable solutions for modern high-speed communication networks.

The key components of ZR+ coherent-optics include transceivers, modules, optical fibers, amplifiers, and other elements. A transceiver is a device that converts electrical signals into optical signals and vice versa, enabling high-speed, reliable communication with integrated monitoring in advanced optical networks. They support data rates such as 100 gigabits per second (G), 200 gigabits per second (G), 400 gigabits per second (G), 800 gigabits per second (G), and higher. They are used in applications including data center interconnect, metro networks, long haul, cloud infrastructure, and other use cases, and are employed by end-users including telecommunications providers, cloud service providers, enterprises, and other organizations.

The countries covered in the ZR+ coherent-optics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The ZR+ coherent-optics market consists of revenues earned by entities by providing services such as network optimization services, managed bandwidth services, disaster recovery connectivity, high-performance computing (HPC) connectivity and 5G backhaul services. The market value includes the value of related goods sold by the service provider or included within the service offering. The ZR+ coherent-optics market also includes sales of digital signal processors (DSPS), coherent optical engines, wavelength selective switches (SWSs), optical line systems and pluggable coherent modems. 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.

This product will be delivered within 3-5 business days.