Global Optical Transceivers Market Size, Share, Opportunities, And Trends By Modulation Format (NRZ, PAM4, Hybrid (NRZ/PAM4)), By Data Rate (<100G, 100G, 200G, 400G), By Technology (Direct Detection, Coherent), And By Geography - Forecasts From 2024 To 2029

The global optical transceiver market is poised to reach to US$19.193 billion in 2029 from an initial value of US$8.510 billion in 2022 at a CAGR of 12.32%.

GROWTH DRIVERS:

• GROWING INVESTMENTS IN 5G BASE STATIONS

The 5G technology penetration is on the rise with favorable investment being implemented in preparation of necessary components such as antennas and receivers. The demand for optical network equipment is also set to show positive growth, which will further excel due to the growing 5G base station deployment. Optical fiber networks help transmit data over longer distances and deliver it on an enormous scale. Hence, investments and strategic collaboration in deploying 5G base stations are also expected to drive the optical transceiver market growth. For instance,

• In February 2023, Fujitsu launched its virtualized 5G base station, integrating the company’s virtualized CU and DU with NVIDIA’s GPU technology. The base station was developed under the “5G Open RAN Ecosystem” project and would serve telecommunication carriers globally from March 2023.
• In May 2023, Ericsson was selected by KDDI to assist the latter in deploying Japan’s first “manhole-shaped” 5G base station that would enable service providers to place their equipment in their existing underground vaults connected to sub-terrain antennas.

NEW OPPORTUNITIES IN THE GLOBAL OPTICAL TRANSCEIVERS MARKET

• NRZ

Based on the modulation format, the 5g optical transceiver is segmented into NRZ, PAM4, and hybrid. Due to growing investments and partnerships, NRZ is expected to hold a major proportion during the anticipated period. For instance,

DATE	TYPE	DESCRIPTION
December 2022	Demonstration	Anritsu Corporation, along with CIG photonics, demonstrated an “800G optical transceiver “PAM4 Test solution” using Anritsu’s “MP2110A Sampling Oscilloscope”, which would analyze NRZ. The new demonstration would address the growing demand for improving optical connections.
March 2023	Demonstration	Coherent Corp. announced the demonstration of an optical transceiver module that would operate at 200 Gbps per optical lane. These pluggable and co-packaged modules represent the data networking industry's next generation of 800 Gbps and 1.6 Tbps optical modules in single-mode and multimode applications.

• Coherent Optical Transceivers

The 5G optical transceiver market, technology-wise, is analyzed into direct detection and coherent optical transceivers. The latter is set to show the quickest growth, fueled by the booming cloud 5G subscription, cloud computing, and investments to bolster mobile networks, which has stimulated the requirement for low-energy consumption and high-speed optical communication components. Likewise, new production innovations and launches to expand the existing portfolio also act as an additional driving factor.

DATE	TYPE	DESCRIPTION
June 2022	Launch	FiberMall introduced a DWDM system based on the QSFP-DD-400G-DCO-ZR/ZR+ coherent transceiver. This approach inserts 400G ZR/ZR+ coherent transceivers on the switch and achieves DCI DWDM transmission via optical layer transmission. This solution will reduce the network complexity of data center interconnection (DCI), increase transmission system reliability, realize high-capacity transmission, and lower system power consumption and cost. This product has DCI, 5G backhaul applications, edge networks, MAN, and other areas.
September 2022	Launch	Marvel, formed in collaboration with InnoLight, announced the availability of the latter’s “100G QSFP-D” optical module ideal for 5G backhaul and fronthaul application. The coherent module is powered by Marvel’s “Deneb Coherent DSP” and would accelerate the transition from 10G to 100G coherent WDM solution.

GLOBAL OPTICAL TRASEIVERS MARKET GEOGRAPHICAL PRESENCE:

Geography-wise, the global optical transceivers market is divided into the Americas, Europe, Middle East and Africa, and Asia Pacific, which house major economies witnessing positive growth in their 5G penetration. Some major countries include the USA, Japan, South Korea, Spain, China, Switzerland, and Germany. The countries are undertaking strategic investments and implementing initiatives to bolster their 5G networks, thereby augmenting the overall market growth. For instance,

According to the data provided by the Department of Telecommunication, in May 2024, the total strength of 5G base stations in India stood at 4,12,214, which represented an addition to the 14,291 number recorded in the previous month. The new installation formed part of the government’s strategic maneuver to bolster India's 5G wireless network.

• In March 2023, OES Solutions launched its two new digital coherent optical transceiver modules, “100G QSFP-DD DCO “and “100G/200G CFP2 DCO”, both of which have an EDFA booster amplifier and an adjustable optical filter. The C-band adjustable DWDM modules are displayed at OE Solutions' stand during OFC 2023 in San Diego, California (USA). The new module offers high tolerance for diverse networks and would meet the need for next-generation aggregation networks primarily supporting 5G.
• In November 2022, BB Backbone Corp. completed an IP over DWDM transmission experiment, employing 400ZR transceivers in an established commercial network environment linking with their Tokyo POPs and Fuchu Data Center. To confirm this experiment, ARISTA 400ZR and Arista 7280R3 series routers were used to connect data centers in Tokyo and IDC Frontier's Tokyo Fuchu Data Center via additional sites with 80-90 km data transmissions.
• In September 2022, Source Photonics launched a range of 25G and 50G PON optical network unit (ONU) and optical line terminal (OLT) optical transceivers at the ECOC 2022 event in Basel, Switzerland.

MAJOR PLAYERS IN THE MARKET:

Some of the leading players in the market include Nokia, Fujitsu, Keysight Technologies, Anritsu, and Cisco, among others, which have implemented various business strategies. These strategies include strategic collaboration, investments, product innovation, and launches to bolster their market product offerings and presence. For instance,

• In November 2023, Fujitsu launched its O-RAN Complaint “5G-virtualized RN solution”, which would be used in DOCOMO’s 5G commercial network services scheduled to begin in September 2023. The service would bolster multi-vendor connectivity by combining various wireless devices.
• In February 2023, Cisco expanded its collaboration with NEC Corporation under the “Global System Integrator Agreement”, which aimed to integrate their solutions and optimize growing opportunities in 5Gxhaul and private 5G. The solution would provide end-to-end automation and routed optical networking.

Global Optical Transceivers Market Scope:

 

Report Metric	Details
Market Size Value in 2022	US$8.510 billion
Market Size Value in 2029	US$19.193 billion
Growth Rate	CAGR of 12.32% from 2022 to 2029
Study Period	2019 to 2029
Historical Data	2019 to 2022
Base Year	2023
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Billion
Segments Covered	Modulation Format Date Rate Technology Geography
Companies Covered	Edge Optical Solution Fujitsu Cisco ZKTel Yangtze Optical FC
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Customization Scope	Free report customization with purchase

 

The Global Optical Transceivers market is segmented and analyzed as:

• By Modulation Format
  • NRZ
  • PAM4
  • Hybrid (NRZ/PAM4)
• By Date Rate
  • <100G
  • 100G
  • 200G
  • 400G
• By Technology
  • Direct Detection
  • Coherent
• By Geography
  • Americas
    • United States
    • Others
  • Europe, Middle East, and Africa
    • Germany
    • UK
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Others

---

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Market Segmentation

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Bandwidth Availability

4.4. Number of Users

5. GOVERNMENT REGULATIONS/POLICIES

6. OPTICAL TRANSCEIVERS MARKET, BY MODULATION FORMAT

6.1. Introduction

6.2. NRZ

6.3. PAM4

6.4. Hybrid (NRZ/PAM4)

7. OPTICAL TRANSCEIVERS MARKET, BY DATA RATE

7.1. Introduction

7.2. <100G

7.3. 100G

7.4. 200G

7.5. 400G

8. OPTICAL TRANSCEIVERS MARKET, BY TECHNOLOGY

8.1. Introduction

8.2. Direct detection

8.3. Coherent

9. OPTICAL TRANSCEIVERS MARKET, BY GEOGRAPHY

9.1. Introduction

9.2. Americas

9.2.1. United States

9.2.2. Others

9.3. Europe, Middle East and Africa

9.3.1. Germany

9.3.2. UK

9.3.3. Others

9.4. Asia Pacific

9.4.1. China

9.4.2. Japan

9.4.3. South Korea

9.4.4. Others

10. RECENT DEVELOPMENT AND INVESTMENTS

11. COMPETITIVE ENVIRONMENT AND ANALYSIS

11.1. Major Players and Strategy Analysis

11.2. Vendor Competitiveness Matrix

12. COMPANY PROFILES

12.1. Edge Optical Solution

12.2. Fujitsu

12.3. Cisco

12.4. ZKTel

12.5. Yangtze Optical FC

12.6. Stordirect

12.7. Lumentum

12.8. WaveSplitter Technologies

12.9. Nokia

12.10. Anritsu

12.11. OES Solution

12.12. Sumitomo Electric

Edge Optical Solution

Fujitsu

Cisco

ZKTel

Yangtze Optical FC

Stordirect

Lumentum

WaveSplitter Technologies

Nokia

Anritsu

OES Solution

Sumitomo Electric