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Global Optical Transceivers Market: Players Driving Innovation to Transform Data Communications

Article Description

The global optical transceiver market is driven by the increasing demand of consumers for higher speed. Optical transceivers are components used to support and enable cheaper transport through the entire network. An optical transceiver refers to an integrated circuit (IC), which transmits and receives data via optical fiber instead of electrical wire. Optical transceivers facilitate high speed network infrastructure and build-outs. In 2007, IBM displayed the prototype of an optical transceiver that had the potential of transferring data up to 160 Gbps, which is 1,6000 times higher than the speed of an Ethernet connection, which operates at 100 Mbps.

Optical transceivers function both as carriers and data centers. Optical transceivers function in distances ranging from very short reach within a datacenter or to a campus. They can also work in long distances such as metro and long-haul reaches.

Vendors Positioned with Innovative Technology to Transform Data and Telecommunication Infrastructure

High-speed serial transceivers are the backbone of networks. Global adoption of the Internet is fueling the growth of mega datacenters. Furthermore, around 60% in the world’s population uses the internet. This figure is growing every year, which will boost the global Internet industry and its related markets. The maximum number of Internet users in the world are found in Asia, followed by Europe. These data centers support streaming of videos, online commerce, social networking, and cloud services. The primary service offering of these data centers is Software as a Service (SaaS).

Leading vendors in the global optical transceivers market include Finisar JDS Uniphase, Oplink, Photonics, NEC, Sumitomo, Emcore Source, Fujitsu Avago, and Oclaro Furukawa. These vendors offer a broad selection of products. The market players in the global optical transceivers market invest significantly on innovative technology. Manufacturers of optical transceivers address the needs of all major networking equipment vendors across the globe. These key vendors in the market are transforming the data communications along with the telecommunications equipment market.

Widespread Adoption of 100 Gbps Devices to Drive Global Optical Transceivers Market

The global optical transceiver market was worth US$3.2 billion in 2013 and is projected to be worth US$9.9 billion. The availability and cost-effectiveness of 400 Gbps, 100 Gbps, and 40 Gbps devices will drive the global optical transceiver market. The next-generation devices consume less power, and are cheaper and more compact. Furthermore, the widespread use of 100 Gbps devices coupled with the elevated Internet traffic will bring a dynamic shift in the communication infrastructure markets.

The combination of quadrature phase-shift-keying (DP-QPSK) or polarization-multiplexing (PM-QPSK) is being considered as one of the most promising solution to reach speeds of 100 Gbps or higher. At present, the DP-QPSK is the industry-supported modulation scheme for the 100 Gbps devices. The commonality between the 100 Gbps and 40 Gbps coherent designs deliver a design choice and sequester the competitive rivalry to pricing. If users invest in 40 Gbps and a more economical 100 Gbps coherent design appears, the former would receive the required market traction to achieve economy of scale. This makes 40 Gbps devices viable in the global optical transceivers market.

Browse the full Global Optical Transceivers Market report at

At present, designers are focusing on shrinking existing 40 Gbps modules and boosting its system capacity in the global optical transceivers market. This trend will further fuel the growth of the global optical transceiver market.