The U.S. optical transceivers valued USD XX million in 2019 and are estimated to reach USD XX million by 2027, growing at a CAGR of XX% during the forecast period
A key component for achieving high-speed data communications with minimal distortion is an optical transceiver. The optical transceiver can be both an optical transmitter and an optical receiver, or it can be a combined optical transceiver module The optical transmitter converts electrical signals into optical signals for transmission, while the optical receiver converts received optical signals back into electrical signals. Furthermore, Due to growing demand and need for the Internet, optical communication technology has been well developed and extensively used. As a result, leads to the demand for increased communication speed and quality. Thus the market growth majorly attributable to the growing demand for U.S. optical transceivers in various applications such as data centers, telecommunication, wireless backhaul, coherent, and others Data centers hold the major application market share of U.S. optical transceivers, and they shared market by revenue of XX% in 2019 QSFP, QSFP+, QSFP14, and QSFP28 holds the topmost position as the largest form factor segment of the U.S. optical transceivers market. The segment had build revenue of XX% in 2019
Based on fiber types, single-mode has built the largest market in the U.S. optical transceiver business as they can transmit data at a much higher bandwidth over much longer distances. They shared market by revenue of XX% in 2019
Furthermore, the 1310nm wavelength has gained tremendous popularity and market share due to the growing telecommunication and single-mode fibers market. The segment had build market by revenue of XX% in 2019
Market Dynamics
Drivers
- Increasing demand for mobile data services
- Need for high data transfer speed with low latency
- Growing development of optical communication and increasing wireless devices
Restraints
- High cost of optical component and high initial investment
- High competition from key manufacturing countries
Increasing demand for mobile data services
Growing mobile subscribers, especially in developing countries, will play a key role in developing mobile data services and shall help 5g infrastructure strengthen in the next 5 years
As per Cisco Report on Digital Transformation, in 2018 the number of networked devices per capita was 2.4, which will increase to 3.6 by the end of 2023. In 2018, the number of networked devices was 18.4 billion, including laptops, computers, smartphones, tablets, etc., which is expected to grow to 29.3 billion by 2023
By the end of 2023, over 70% of the global population will have mobile connectivity and around 11% of devices will be connected with 5G. The 5G network connections will become 100 times of 2018 level, shall increase from 13 million active connections in 2018 to 1.4 billion by 2023 globally
By 2023, North America will have 17% connections of 5g network globally, out of which U.S. will share over 70% of connections in North America region
5G rollout is a critical factor for development of optical transceivers market, which increases demand for wireless fronthaul optics
Thus, increasing demand for mobile data services is driving the growth of the 5g infrastructure market, which is directly impacting optical transceivers demand in the U.S.
Competitive Landscape
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