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Key Market Dynamics in Optcal Transceiver

Dec 4, 2019

According to MarketsandMarkets, Optical Transceiver Market by Form Factor (SFF, SFP, QSFP, CFP, XFP, and CXP), Data Rate (1G, 10G, 40G, and 100G), Distance, Wavelength (850nm, 1310nm, and 1550nm), Application (Telecom, Data Center, and Enterprise), & Geography – Global Forecast to 2022″ indicates that by 2022, the global optical transceiver market size will be valued at USD 6.9 billion with a 13.5% compound annual growth rate (CAGR) in the forecast period between the years 2016 and 2022.


The growing internet penetration and data traffic are the primary driving factors in the optical transceiver industry. Besides, other factors such as the rising demand for smartphones and connecting devices and the adoption of cloud computing are also driving its growth.


The segments which are expected to grow during the forecast period include SFP+ and SFP28 owing to their high market size in 2016 in terms of volume. Also, they enhance a network’s versatility by enabling usage in cloud computing, data centers, etc.


The optical transceiver market is expected to witness a growth in the forecast period, but the demands of the QSFP, QSFP+, QSFP14, and QSFP28 form factors might have a slightly lower growth rate. They were known to together hold a large market share in the optical transceiver industry in 2016. Such devices are best for large transceiver applications and are used in data centers dealing with high-density signal transmission, high-performance computing, high-speed data processing, VoIP, etc.


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America is the largest consumer in the optical transceiver industry. This is the reason why the region accounted for the majority of the optical transceiver market share in 2016. Many established data centers, as well as companies providing cloud services, are found in the US. This is because demand for data communication has risen along with the increase in demand for various devices used for communication, such as smartphones, tablets, VoIP devices, and wearable communication devices.


The industry has also witnessed the growing applicability of optical transceivers in the data center, which is another reason behind its exponential growth in America. In this report, we will have a look at the most prominent players in the optical transceiver market. The top players include Accelink Technologies Co., Ltd. in China, Finisar Corp., Lumentum Holdings Inc., NeoPhotonics Corp., Source Photonics, Inc., and Oclaro Inc. in the US, Foxconn Electronics Inc. in Taiwan, Reflex Photonics Inc. in Canada, and Sumitomo Electric Industries, Ltd. and Fujitsu Optical Components Ltd. in Japan. These companies are known to have research and development facilities along with sales offices and distribution channels. Their products can be used in different industries for various purposes. These key players are known to have their growth strategies to excel in the competitive optical transceiver market.


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