Global Optical Transceiver Market to Reach US$ 21.9 Billion by 2028, Stimulated by Widespread Utilization of the Internet of Things (IoT)

May 29, 2023 | Electronics and Semiconductors

According to the latest report by IMARC Group, titled “Optical Transceiver Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028,” the global optical transceiver market size reached US$ 9.8 Billion in 2022. An optical transceiver, or an optical module, refers to an essential component in modern communication systems that enables the transmission and reception of data using optical signals. It functions as the link between switches, routers, and servers, which process and use digital data, and optical fibres, which convey light signals. The optical transceiver makes bidirectional communication over fibre optic networks possible by combining a transmitter and a receiver into a single small device. Its transmitter component is composed of either a laser diode or an LED. The transmitter transforms electrical impulses provided to it into optical signals by generating light. The light is then fired into an optical fibre, where it uses total internal reflection to pass through the fiber's core. The electrical signals in the transceiver's transmitter may be encoded into the optical carrier using a variety of modulation techniques, including amplitude modulation (AM), frequency modulation (FM), and phase modulation (PM).

Global Optical Transceiver Market Trends:

The growing penetration of the Internet of Things (IoT)-based devices majorly drives the global market. This can be supported by the characterization of IoT by interconnected devices and sensors, generating massive amounts of data that need to be transmitted and processed. Moreover, optical transceivers provide the necessary infrastructure for transmitting this data reliably and quickly, supporting the seamless functioning of various IoT applications across industries, including healthcare, manufacturing, transportation, and smart cities, which is significantly supporting the market. Along with this, the rising demand for high-speed data transmission due to the proliferation of data-intensive applications, such as cloud computing, video streaming, online gaming, and virtual reality, is positively influencing the demand on the global level. In addition, the emergence of 5G networks across the globe that offers significantly higher speeds, lower latency, and increased capacity compared to previous generations of wireless technology is propelling the market. Apart from this, governments from various countries are promoting the development and deployment of high-speed broadband networks to support digital inclusion and improved public services, thereby contributing to the market. Furthermore, continuous innovations in coherent optics, silicon photonics, and compact that offers higher performance, lower costs, and enhanced scalability are creating a positive market outlook. On account of the aforementioned factors, the market value is projected to reach US$ 21.9 Billion by 2028, expanding at a CAGR of 13.8% during 2023-2028.

Market Summary:

  • Based on the form factor, the market has been segmented into SFF and SFP, SFP+ and SFP28, QSFP, QSFP+, QSFP14 and QSFP28, CFP, CFP2, and CFP4, XFP, CXP, and others. Currently, SFF and SFP dominates the market share.
  • On the basis of the fiber type, the market has been segmented into single mode and multimode fiber. Presently, single mode fiber holds the leading market share.
  • Based on the data rate, the market has been categorized into less than 10 Gbps, 10 Gbps to 40 Gbps, 40 Gbps to 100 Gbps, and more than 100 Gbps. At present, 10 Gbps to 40 Gbps accounts for the largest market segment.
  • On the basis of the connector type, the market has been segmented into LC connector, SC connector, MPO connector, and RJ-45. Currently, SC connector dominates the market, holding the largest share.
  • Based on the application, the market has been segmented into data center, telecommunication, and enterprises. According to the report, data center exhibit a clear dominance in the market.
  • Region-wise, the market has been segmented into North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. At present, Asia Pacific holds the leading position in the market.
  • The competitive landscape of the market has also been examined, with some of the key players being Accelink Technologies Co. Ltd., Arista Networks Inc., Broadcom Inc., Cisco Systems Inc., Coherent Corp., Fujitsu Limited, HUBER+SUHNER Cube Optics AG (Huber+Suhner AG), Juniper Networks Inc., Lumentum Operations LLC, NEC Corporation (AT&T Corporation), Smiths Interconnect Inc. (Smiths Group plc), Source Photonics Inc., and Sumitomo Electric Industries Ltd.

Report Scope:

Report Features Details
Base Year of the Analysis 2022
    Historical Period 2017-2022
Forecast Period 2023-2028
Units US$ Billion
Segment Coverage Form Factor, Fiber Type, Data Rate, Connector Type, Application, Region
Region Covered  Asia Pacific, Europe, North America, Latin America, Middle East and Africa
Countries Covered United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Companies Covered Accelink Technologies Co. Ltd., Arista Networks Inc., Broadcom Inc., Cisco Systems Inc., Coherent Corp., Fujitsu Limited, HUBER+SUHNER Cube Optics AG (Huber+Suhner AG), Juniper Networks Inc., Lumentum Operations LLC, NEC Corporation (AT&T Corporation), Smiths Interconnect Inc. (Smiths Group plc), Source Photonics Inc., Sumitomo Electric Industries Ltd., etc.
Customization Scope 10% Free Customization
Report Price and Purchase Option Single User License: US$ 2499
Five User License: US$ 3499
Corporate License: US$ 4499
Post-Sale Analyst Support 10-12 Weeks
Delivery Format PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

About Us:

IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.

Contact Us:

134 N 4th St.
Brooklyn, NY 11249, USA
Americas:- +1 631 791 1145 | Africa and Europe :- +44-702-409-7331 | Asia: +91-120-433-0800, +91-120-433-0800

Need more help?

  • Speak to our experienced analysts for insights on the current market scenarios.
  • Include additional segments and countries to customize the report as per your requirement.
  • Gain an unparalleled competitive advantage in your domain by understanding how to utilize the report and positively impacting your operations and revenue.
  • For further assistance, please connect with our analysts.
Global Optical Transceiver Market to Reach US$ 21.9 Billion by 2028, Stimulated by Widespread Utilization of the Internet of Things (IoT)
Purchase options Year End sale

Benefits of Customization

Personalize this research

Triangulate with your data

Get data as per your format and definition

Gain a deeper dive into a specific application, geography, customer, or competitor

Any level of personalization

Get in Touch With Us

Phone: +1-631-791-1145


Phone: +91-120-433-0800


Phone: +44-753-713-2163


Client Testimonials

Aktive Services

IMARC made the whole process easy. Everyone I spoke with via email was polite, easy to deal with, kept their promises regarding delivery timelines and were solutions focused. From my first contact, I was grateful for the professionalism shown by the whole IMARC team. I recommend IMARC to all that need timely, affordable information and advice. My experience with IMARC was excellent and I can not fault it.

Read More
Greenfish S.A.

The IMARC team was very reactive and flexible with regard to our requests. A very good overall experience. We are happy with the work that IMARC has provided, very complete and detailed. It has contributed to our business needs and provided the market visibility that we required

Read More
Colruyt Group

We were very happy with the collaboration between IMARC and Colruyt. Not only were your prices competitive, IMARC was also pretty fast in understanding the scope and our needs for this project. Even though it was not an easy task, performing a market research during the COVID-19 pandemic, you were able to get us the necessary information we needed. The IMARC team was very easy to work with and they showed us that it would go the extra mile if we needed anything extra

Read More

Last project executed by your team was as per our expectations. We also would like to associate for more assignments this year. Kudos to your team.

Read More
Zee Media Corp. Ltd.

We would be happy to reach out to IMARC again, if we need Market Research/Consulting/Consumer Research or any associated service. Overall experience was good, and the data points were quite helpful.

Read More
Arabian Plastic Manufacturing Company Ltd.

The figures of market study were very close to our assumed figures. The presentation of the study was neat and easy to analyse. The requested details of the study were fulfilled. My overall experience with the IMARC Team was satisfactory.

Read More
Sumitomo Corporation

The overall cost of the services were within our expectations. I was happy to have good communications in a timely manner. It was a great and quick way to have the information I needed.

Read More
Hameln Rds

My questions and concerns were answered in a satisfied way. The costs of the services were within our expectations. My overall experience with the IMARC Team was very good.

Read More
Quality Consultants BV

I agree the report was timely delivered, meeting the key objectives of the engagement. We had some discussion on the contents, adjustments were made fast and accurate. The response time was minimum in each case. Very good. You have a satisfied customer.

Read More
TATA Advanced Systems Limited

We would be happy to reach out to IMARC for more market reports in the future. The response from the account sales manager was very good. I appreciate the timely follow ups and post purchase support from the team. My overall experience with IMARC was good.

Read More

IMARC was a good solution for the data points that we really needed and couldn't find elsewhere. The team was easy to work, quick to respond, and flexible to our customization requests.

Read More