Optical Transceivers Market to Grow Substantially at USD 9.9 Billion Optical Transceivers Market 2020

Optical Transceivers Market to Grow Substantially at USD 9.9
billion by 2020: Radiant Insights, Inc
The optical transceivers market is poised to reach USD 9.9 billion by 2020. It had a prior market value of
USD 3.2 billion in 2013. Adoption of 100 Gbps (Gigabits per second) devices and increase in Internet
traffic are primary drivers of the market. Next generation devices are smaller and cost-effective. They are
driven by availability of 40 Gbps, 100 Gbps, and 400 Gbps devices.
Optical transceiver is an integrated circuit that transfers data at higher speeds than a modem Internet
connection. It transfers data through pulses or beams through transparent fibers or cables. High-end
communication and other electronic systems depend on optical transceivers. Adapting to the Internet and
e-commerce platforms are driving the optical transceivers market. Data services include SaaS (softwareas-a-service), social networking, and streaming media.
New designs and pay-as-you-grow flexibility offered by pluggable modules are the latest trend of the
market.
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Optical transceivers comply with PON, Fibre Channel, Ethernet, and SONET/SDH/OTN standards. They
operate with data transfer rates of 10, 40, and 100 Gbps.
Optical transceivers are utilized in local area networks (LAN) and wide area networks (WAN) for
businesses, schools, government institutes, and homes. They let you download large files in a few seconds
as compared to a few hours. They utilize fiber to the premises (FTTP) in which optical fiber runs from
data centers to the vicinity of your home.
Optical transceivers work over extended voltage and temperatures. They can minimize jitter, power
dissipation, and electromagnetic interference (EMI). Pluggable optical transceivers are GBIC, SFP+,
XFP, SFP, CFP, and X2. SFP+ is an extended version of SFP and can transfer with 16 Gbps. They can
accommodate a wide range of link spans. Manufacturers work closely with infrastructure managers to
design high speed networking systems. They have managed to shrink 40 Gbps modules to requiring only
2 system line cards. They will change the face of the communication infrastructure market.
On the basis of connection, the optical transceivers market is categorized into SM (single-mode), MM
(multi-mode), and WDM (wavelength division multiplexing) modules. North America is the most
lucrative market in terms of optical transceiver adoption. Europe follows North America in terms of
demand for 40 Gbps devices. In Asia Pacific, China is the largest market for 100 Gbps devices.
Notable players of the optical transceivers market are Broadcom, NeoPhotonics, Foxconn Technology
Group, Sumitomo, and Alcatel-Lucent.