Global Optical Transceiver Market 2018-2022
About Optical Transceiver
An optical transceiver is an optical fiber communication system module. The primary function of this module is photoelectric conversion. Information is sent in the form of light pulses through an optical fiber communication system. These light pulses are then converted into electrical signals to be used by electronic devices.
Technavio’s analysts forecast the global optical transceiver market to grow at a CAGR of 10.39% during the period 2018-2022.
Covered in this report
The report covers the present scenario and the growth prospects of the global optical transceiver market for 2018-2022. To calculate the market size, the report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Optical Transceiver Market 2018-2022
Technavio recognizes the following companies as the key players in the global optical transceiver market: Finisar, Lumentum Operations, and Oclaro.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is migration of OTNs toward WDM architecture. OTNs have started migrating from SONET technology toward wavelength-division multiplexing (WDM) architecture, more prominently to dense WDM (DWDM). The deployment of DWDM systems by carriers has benefited them to a great extent. Currently they can tap to an enormous capacity by carrying multiple wavelengths over a single optical fiber. This has allowed carriers to make significant reductions in the cost of deploying an overlay of multiple networks for each service offering or single-channel networks.”
According to the report, one driver in the market is migration from copper wires to optic fibers. A major driver for the growth of the optical transceiver market is the migration from the use of copper wires to optic fibers. A copper fiber uses electrical impulses to transmit data over long distances. This leads to large attenuations, which, in turn, result in the distortion of the data. Moreover, copper wires can easily be tapped, which may lead to security issues. Optic fibers are inexpensive, light-weight, and non-flammable. They carry higher bandwidths compared with copper wires.
Further, the report states that one challenge in the market is different architecture requirements. The network architecture requirements of regional carriers, such as tier 2 and tier 3 carriers, differ significantly from tier 1 carriers that have the integrated switched optical transport network (OTN) as the transport technology. The applicability and match of OTN switching into the regional carrier’s space have to be evaluated. Regional carriers may not require such high-capacity networks as the demand for bandwidth from their service areas may be significantly lower.
Finisar, Lumentum Operations, and Oclaro.