Optical transceivers are considered to be the backbone of network systems. A sizeable number of electronic systems, servers, and communication devices are dependent on these high speed serial receivers.
In last 5 years, the sale of optical components has grown steadily and is expected to grow exponentially in the years to come. According to Technavio’s market research study; the global optical transceiver market is anticipated to grow rapidly and will post a CAGR of more than 16% during 2016-2020.
Major Factors
The major factor bolstering the adoption of optical transceiver components is their low cost transport of information over the network. Optical transceivers are widely used in high speed network infrastructure due to its excellent capacity of supporting large bandwidth load.
The growing need for an increased network bandwidth will drive the growth prospects. The increase in adoption of the internet services is said to be the primary driver for the growth of the optical transceivers market. Adoption of 4G and 5G standards in mobile telecommunication is encouraging consumers to demand for applications and services that support higher bandwidth. Another factor that is driving the growth of the market is the increasing demand for communication devices such as mobiles, tablets, and wearables.
The rapid expansion of data centers which support streaming videos, cloud services, social networking, and online commerce is another factor which is fuelling the growth of the market. The growth in deployment of 100G transceivers for high speed networks is another factor contributing to high demand for optical transceivers. Fast adoption of 40G and 100G modules will drive growth for optical transceivers in near future.
Not only data centers, many large scale enterprises are now increasingly dependent on cloud services such as the Microsoft Office 365, Google Apps, and SAP. This is leading to a spike in demand for high bandwidth and advanced networks which are expected to ultimately fuel the growth of the optical transceivers market.
Influenced By The Markets
According to the Persistence Market Research Report, highly attractive and predominant market for transceivers is north American and European regions due to increasing demand for sophisticated communication network which requires even more sophisticated and powerful high bandwidth transceivers. China, in APAC region is expected to be the fastest growing market for optical transceivers owing to its increasing demand for deployment of 100G equipment.
Other factors contributing to the growth of this market includes the growth of software-as-a-service (SaaS) and the prominent role of fiber optics which employ optical transceivers in the finance industry which involves data receivable and transmission at lightning speed.
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