Optical Transceiver Market Expected to Reach $27.25 Billion By 2030

According to a new report published by Allied Market Research, titled, “Optical Transceiver Market By Form Factor, Data Rate, Fiber Type, Distance, Wavelength, Connector, and Application: Global Opportunity Analysis And Industry Forecast, 2021–2030,” the optical transceiver market size was valued at $7.18 billion in 2020, and is projected to reach at $27.25 billion by 2030, growing at a CAGR of 15.1% during the forecast period.

An optical transceiver module is the essential part of optical communication devices. It utilizes fiber optical technology to send and receive data through completing the process of optical signal, electrical signal, and optical signal conversion.

Some of the prime drivers of the global optical transceiver industry are 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 cost associated with optical cable networking act as major barrier for the optical transceiver market growth. Conversely, rise in adoption of AI & IoT and rise in deployment of VoIP, LTE, and 5G networks are expected to create lucrative opportunities for the market growth during the forecast period.

COVID-19 Impact Analysis

COVID-19 not only impacted the operations of the various optical transceiver manufacturers companies, but also affected the budget of end users. However, the negative impact of COVID-19 on the optical transceiver market trends is expected to be there for a short period of time, and by early 2021 the market is anticipated to observe robust recovery rate along with the extensive demand for optical transceiver products in post pandemic. This is due to the fact that a growing number of market players are reassessing their strategies and coming up with quick responses to stabilize their supply chain.

Region wise, North America holds a significant share in the global optical transceiver market. U.S. holds the major market share, owing to the presence of leading market players and higher rate of technology adoption in the region.

Key Findings of the Study

• In 2020, the 41 Gbps to 100 Gbps segment accounted for maximum revenue, and is projected to grow at a notable CAGR of 15.9% during the optical transceiver market forecast period.
• The single mode fiber segment accounted for more than 55.0% of the optical transceiver market share in 2020.
• The data center segment of the market is projected to grow at a CAGR of 16.6% during the forecast period.
• Europe contributed major share in the market, accounting for more than 35.0% share in 2020.

The key players profiled in the report include 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. Market players have adopted various strategies, such as product launch, collaboration & partnership, joint venture, and acquisition to expand their foothold in the optical transceiver market analysis.