PUBLISHER: The Insight Partners | PRODUCT CODE: 1858559
PUBLISHER: The Insight Partners | PRODUCT CODE: 1858559
The Optical Transceiver Market size was valued at US$ 14.60 billion in 2024 and is projected to reach US$ 36.73 billion by 2031; it is expected to register a CAGR of 14.2% during 2025-2031.
The optical transceiver market is segmented into five major regions-North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the optical transceiver market in 2024. Europe is the second-largest contributor to the global optical transceiver market, followed by Asia Pacific.
The optical transceiver market in APAC is segmented into China, India, Japan, Australia, South Korea, and the Rest of APAC. Australia, China, Japan, India, South Korea, and the Rest of APAC are the major contributors to the optical transceiver market in this region. The Asia Pacific region is emerging as one of the fastest-growing markets. Asia Pacific is witnessing strong growth in the demand for optical transceivers, fueled by rapid urbanization, the proliferation of mobile connectivity, and aggressive 5G rollouts across major economies such as China, Japan, South Korea, and India. According to GSMA Intelligence's The Mobile Economy Asia Pacific 2025 report, mobile connectivity contributes to the development of modern, inclusive, and sustainable digital nations in Asia Pacific, allowing for the further integration of transformational technology such as AI into everyday activities for consumers and enterprises. In 2024, the mobile sector accounted for 5.6% of Asia Pacific GDP, worth US$950 billion. This is predicted to increase to US$1.4 trillion by 2030, or 6.6% of GDP, as the effects of 5G technology expand across local economies. This rapid digital expansion demands robust infrastructure capable of handling vast data traffic at high speeds and low latency, surging the adoption of optical transceivers.
China leads the global optical transceiver market owing to its dominance of domestic players such as Huawei Technologies Co Ltd and ZTE Corp, as well as massive investments in 5G, fiber to the X (FTTx), and data center infrastructure. Japan and South Korea continue to push the boundaries of high-speed internet, while India's digital initiatives, such as BharatNet, are expanding rural connectivity. Moreover, cloud services and video streaming are surging across the region, necessitating faster and more efficient optical networks. Hyperscale data center growth-particularly in Southeast Asia-is another crucial factor, with companies such as Alibaba Cloud, Tencent, and AWS expanding regional footprints. The Asia Pacific region also benefits from low manufacturing costs, making it a key hub for optical transceiver production. Additionally, increasing digital traffic and supportive infrastructure policies, propels optical transceiver market in Asia Pacific.
The global optical transceiver market, by application, is segmented into data centers, telecommunications and enterprise networking. The data centers segment held the largest optical transceiver market share. Data centers are one of the biggest users of optical transceivers, as they need to move large amounts of data quickly and efficiently. These facilities house thousands of servers that must communicate with each other through high-speed connections. Optical transceivers are used to connect servers, switches, and storage systems across short and long distances within the data center. As internet usage grows due to cloud computing, video streaming, social media, and artificial intelligence, data centers are upgrading to faster transceivers such as 100G, 200G, 400G, and beyond. As data traffic continues to rise globally, the demand for high-speed, reliable, and cost-effective optical transceivers in data centers is expected to grow rapidly, making this one of the most important segments in the market.
Coherent Corp, Lumentum Holdings Inc, Broadcom Inc, Sumitomo Electric Industries Ltd, Cisco Systems Inc, Intel Corp, Amphenol Corporation, Accelink Technology Co Ltd, NEC Corp and Samtec Inc are among the key optical transceiver market players that are profiled in this market study.
The overall optical transceiver market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the optical transceiver market size. The process also helps obtain an overview and forecast of the market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the optical transceiver market.