The global optical transceiver market is predicted to witness substantial growth in coming years owing to rising demand for fiber optics network. Optical transceiver is a device that transmits and receives signals over network using common circuitry. The device is also known as fiber optic transmitter and receiver as it is used for converting light pulse into an electrical signal and vice versa. It consists of a receiver and transmitter operating in a single module. Both the components have their own path for flow of current to offer transmission in both the directions. Electric current transmitted through the device gets converted into optical output via light emitting diode (LED) or laser diode.
Growing adoption of optical transceiver devices over traditional devices owing to reduced maintenance cost of the former can propel market growth in future. Rising demand for high speed broadband connections can fuel demand for devices that support large bandwidth, which could, in turn, stimulate market expansion. Regular updates in communication and data center networks to improve traffic management by enhancing speed limit can also fuel product demand. Increasing use of smart phones and other connecting devices can spur product demand for advanced communication network. Growing need for reliable and high speed communication network can further stimulate market growth.
Increasing network complexity is likely to restrain market growth. Rising adoption of advanced infrastructures, such as internet of things (IoT), can also obstruct market growth in coming years. However, rising demand for data centers in developing countries can create lucrative opportunities in the market.
The market can be segregated on the basis of type, data rate, wavelength, and application. SFP, SFF, CFP, QSFP, and CXP are the key device types. On the basis of data rate, the market can be classified into greater than 100gigabit per second (Gbps), greater than 10 Gbps and less than 40 Gbps, greater than 40 and less than 100 Gbps, and less than 10 Gbps. Varied wavelengths associated with the device include 1310 nm, 1550nm, and 850nm. Leading applications associated with these devices include enterprises, telecom, and data center.
North America is a prominent region in the market owing to rising demand for superior communication network. Increasing deployment of 100G transceivers to create high speed network is expected to have a positive impact on market growth. The United States is contributing significantly to regional market growth owing to increasing number of data centers, which could, in turn, impel demand for advanced networks to manage unstructured data. Increasing R&D investments by manufacturing companies to develop advanced products can foster market expansion in future. For instance, Finisar Corporation launched 400 G QSFP – DD DR4 for data center applications. QSFP-DD (quad small form pluggable interface double density) is the latest module form factor offering 400G data rates. The device offers eight-lane electrical interface, and increased channel capacity, port density, and bandwidth.
Asia Pacific is anticipated to emerge as one of the promising regions in the market. China is a key contributor to regional market growth owing to increasing deployment of 100G devices. In addition, upgradation of existing communication networks can stimulate market growth in coming years. Improvement in economic conditions in developing countries, such as India and China, and increasing government initiatives to develop network infrastructure can support market expansion in the region. Implementation of optical fiber networks and growing adoption of data centers is also likely to drive the market in coming years. For instance, Alibaba announced launch of its second data center in India. Similarly, National Informatics Center (NIC) launched its fourth data center in Bhubaneshwar to manage digital projects. The server addresses national projects along with projects related to state government. In addition, the center has 35000 virtual servers and 275 racks.
Europe is likely to emerge highly lucrative in coming years owing to increasing adoption of 100G transceivers. Increasing number of data centers attributed to rising demand for amazon web services (AWS) in the region can fuel product demand in coming years. For instance, Amazon announced launch of its fifth data center in Europe. The facility provides services to startups, developers, and enterprises.
Some of the leading companies operating in the optical transceiver market are Fujitsu Optical Components Ltd, Finisar Corporation, Sumitomo Electric Industries, Ltd, NeoPhotonics Corporation, and Accelink Technologies Corporation.
Research Support Specialist, USA