June 21, 2022 04:25 ET | Source: ReportLinker ReportLinker

New York, June 21, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Optical Transceiver Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06288130/?utm_source=GNW The increasing data traffic and the adoption of cloud computing are driving the market’s growth. The development of data center modules is closely related to the optical equipment and their connection methods. Such factors determine how many optical transceivers may be needed in the data center. The need for higher rates is increasing due to applications such as cloud computing and 5G. Datacenter equipment in different locations adapts to these changes and migrates to higher rates accordingly. Moreover, server access switch speed migration increased during the last five years. The enterprise server access gradually changed from 1G-10G to 10G-25G, while the mega cloud server access gradually changed from 10G-40G to 25/50G-50/100G. Since the equipment is becoming more advanced with higher rates, the modules must have the same data rates to assure the overall network performance. Optical transceivers are frequently used with signal decoders and laser diodes. The operation of the transceiver is based on optical pulses created by laser diodes and electric signals processed by signal decoders between the transmitter and receiver. Fiber optic lines and devices are compatible with this phenomenon. However, many data centers have copper-based networking devices that are incompatible with fiber optic transmission. Optical transceivers should be strategically incorporated in some instances. This is where optical transceivers encounter their main challenge. The outbreak of COVID-19 has increased the usage of data. According to a report on the impact of the COVID-19 pandemic on China’s entertainment industry by Maoyan Entertainment, a leading platform providing innovative Internet-empowered entertainment services in China, the movie industry was severely hit by the pandemic, whereas the online entertainment market, including TV and streaming platforms, were booming as people were confined to their homes.? Key Market Trends Increasing Need for Advanced Communication to Drive the Market The advanced development and upgrade of the bearer network will drive the demand for optical communication network equipment to increase as 5G technology progresses and base stations are deployed. From 2019, the penetration of LTE networks and fixed broadband subscription has rapidly grown, and it is expected to follow the trend during the forecast period. Ericsson’s mobility report mentioned that the fixed broadband connection is expected to grow steadily by 3% Y-o-Y till 2024, which is expected to drive the global optical transceiver market. Additionally, the government is taking initiatives, like smart city programs with fiber optic-rich networks, to enable the smooth flow of IoT infrastructure. A fiber-optic network enables the technology to drive utilities, like water, electricity, wastewater, sewerage management, and its security and communication. According to the United Nations, over 68% of the global population is estimated to live in urban areas by 2050, fueling more smart city projects globally. Mobix Labs Inc., a global connectivity solutions provider for wireless mmWave 5G and wired high bandwidth cable networks, announced that it had signed a definitive purchase agreement to acquire Advanced Interconnect Technologies (AIT), a manufacturer and product development firm based in St. Cloud, Minnesota, that serves the military, defense, and commercial air and space industries. This is to maintain up with the demand for advanced communication. Moreover, the launch of innovative solutions to meet the demand further boosts the market growth rate. For instance, in April 2022, Eoptolink Technology Inc., Ltd. announced the launch of its 400G ZR and ZR+ transceivers, which use the Marvel Deneb Coherent DSP (CDSP) to support Data Center Interconnect (DCI) and Metro networks. The Eoptolink 400G QSFP56-DD ZR transceiver module can transmit data up to 120 kilometers and is compliant with the OIF 400G ZR standard. In comparison, the 400G QSFP56-DD ZR+ transceiver module can transmit data up to 480 kilometers and is compliant with the Open ZR+ standard. In March 2022, Molex, a prominent electronics leader and connectivity developer, is ramping up production of its 400G ZR QSFP-DD pluggable coherent optical transceivers, which are commercially available, to meet the growing demand for advanced Data Center Interconnect (DCI) solutions. The 400G ZR and 400G ZR+ solutions, which are part of Molex’s ever-expanding optical transceiver range, enable optimal data transfer rates with minimal power consumption in a small form factor. Asia Pacific is Expected to Witness Fastest Growth The constant advancements in communication technologies are the primary drivers of market growth in the Asia-Pacific. Telecom network operators in the region have installed fiber for the full range of telecom applications, including inter-city, intra-city, FTTx, and mobile cellular systems. Apart from enterprises, the Chinese government authorities also install fiber systems to support the electric power grid, highways, railways, pipelines, airports, data centers, and many other applications, which is driving the growth of the market studied. In July 2021, Furukawa Electric Co. Ltd collaborated to develop next-generation integrated devices with Fujitsu Optical Components Limited. Furukawa Electric and FOC intend to build advanced-performing devices for next-generation communication networks by integrating technology to answer to the enormous growth in communications traffic and demand for lower power consumption. Furthermore, Furukawa Electric and FOC intend to combine optical device products for coherent digital systems to provide specialized transceiver solutions to customers in Asia. With the rapid development of AI, 5G, the internet of things, virtual reality, and the commercial application of these new technologies, the demand for data processing and information interaction is growing, which is expected to speed up the construction of data centers in the region and lead to the explosive growth of the industry.? According to Cloud Scene, some of the top markets in data centers include China, Japan, Australia, India, and Singapore.? Developing economies like India with very low FTTH penetration offer huge growth potential, driving optical transceiver demand. India has one of the most important telecom sectors in the world. The booming digital market in the country and growing investments by telecom companies for higher speed are expected to drive the market studied during the forecast period primarily.? Such instances are likely to increase the demand for optical transceivers in the region. Therefore, the market studied is expected to grow over the forecast period. Competitive Landscape The Optical Transceiver Market is quite competitive and fragmented due to the presence of significant players that have a strong influence on the market in terms of R&D and consolidation activities. March 2022 - Lumentum entered a strategic collaboration agreement with Ayar Labs Inc., a leading provider of chip-to-chip optical connectivity, to deliver continuous-wave wavelength division multiplexing multi-source agreement (CW-WDM MSA)-compliant external laser sources in high volume. The transition from traditional copper interconnects to co-packaged optics is a new market opportunity in the industry, and through the partnership, Lumentum is well-positioned to capture this opportunity. November 2021 - Lumentum announced an agreement to acquire NeoPhotonics for USD 16.00 per share in cash, which represents a total equity value of approximately USD 918 million. NeoPhotonics is a leading developer and manufacturer of lasers and optoelectronic solutions that transmit, receive, and switch high-speed digital optical signals for Cloud and hyper-scale data center internet content providers and telecom networks. Additional Benefits: The market estimate (ME) sheet in Excel format 3 months of analyst support Read the full report: https://www.reportlinker.com/p06288130/?utm_source=GNW About Reportlinker ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place. __________________________