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The Optical Transceiver Market Will Exceed Us$17.7 Billion In 2025, With The Largest Contribution From Data Centers

The Optical Transceiver Market Will Exceed Us$17.7 Billion In 2025, With The Largest Contribution From Data Centers

"The market size of optical transceiver modules reached approximately US$7.7 billion in 2019, and it is expected to more than double to approximately US$17.7 billion by 2025, with a compound annual growth rate of 15% from 2019 to 2025." The Analyst Martin Vallo of veloppment(Yole) said: "This growth has benefited from large-scale cloud service operators beginning to adopt large amounts of more expensive high-speed (including 400G and 800G) modules. In addition, telecom operators have increased investment in 5G networks. ."

The Optical Transceiver Market Will Exceed Us$17.7 Billion In 2025, With The Largest Contribution From Data Centers


Analysts at Yole pointed out that from 2019 to 2025, the demand for optical transceivers from the data communication market will achieve a compound annual growth rate of about 20%. In the telecommunications market, it will achieve a compound annual growth rate of about 5%.

In addition, with the impact of the pandemic, total revenue is expected to increase moderately in 2020. In fact, COVID-19 has naturally affected the sales of global optical transceivers. However, driven by the strategy of 5G deployment and cloud data center development in China, the demand for optical modules is very strong.

The Optical Transceiver Market Will Exceed Us$17.7 Billion In 2025, With The Largest Contribution From Data Centers

According to Pars Mukish, an analyst at Yole: "In the past 25 years, the development of optical fiber communication technology has made great progress. In the 1990s, the maximum capacity of commercial optical fiber links was only 2.5-10Gb/ s, and now their transmission speed can reach 800Gb/s. The development over the past decade has made higher-efficiency digital communication systems possible and solved the problem of signal attenuation."


Analysts at Yole pointed out that the evolution of multiple technologies has enabled the transmission speed of long-distance and metro networks to reach 400G or even higher. Today's trend towards 400G rates stems from cloud operators' demand for data center interconnection. In addition, the exponential growth of communication network capacity and the increasing number of optical ports have had a huge impact on optical module technology. The new shape design is becoming more and more popular ,and aims to reduce its size, thereby reducing power consumption. Inside the module, optical devices and integrated circuits are getting closer and closer.

The Optical Transceiver Market Will Exceed Us$17.7 Billion In 2025, With The Largest Contribution From Data Centers


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