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The global optical transceiver market, according to ResearchandMarket.com’s latest report, is expected to reach USD 9.2 billion by 2025. The market is expected to report a CAGR of 10.0% during the period, growing from the market value of USD 5.7 billion in 2020.

One of the major driving factors for the market growth is the increasing adoption of smart devices and rising data traffic. Also, the growing demand for computing applications and increasing requirements of compact and energy-efficient modules are driving the growth of the market. The emerging focus on 5G networks and increasing demand for high data transfer capabilities to provide opportunities for the market. However, the increasing design complexity restrains the market growth.

Based on Fiber, Optical Transceiver Market for Multimode Fiber to Grow at Highest CAGR

The optical transceiver market for multimode fiber is expected to grow at the highest CAGR during the forecast period owing to benefits offered by multimode fiber such as cost-efficiency, high speed, and bandwidth across shorter distances, larger fiber cores, and good alignment tolerances, among others. Multimode fibers are mostly available in two dimensions - 50 microns and 62.5 microns and are widely used to address the specific needs of applications and shorter reach applications. Furthermore, multimode fibers are used across data centers over a range of 100-150 meters to provide low-cost optical connection.

Based on Data Rates Band, Transceivers Supporting Data Rates 41 Gbps to 100 Gbps and More Expected to Record Increased Demand

Optical transceivers supporting data rates from 41 Gbps to 100 Gbps and more than 100Gbps are expected to grow at the highest CAGR during the forecast period. The rising demand for higher data transmission is mainly driving the growing demand for 100G, 200G, and 400G transceivers. With the advent of advanced technologies such as AI and 5G, there is an increased requirement for higher bandwidth, which is eventually necessary for data center applications.

Based on Region, APAC Market to Grow at Significant CAGR

Factors such as increasing internet penetration, technological advancements such as 4G and 5G connection, increase in the number of smartphone and connected device users eventually increase data traffic in data centers and provide an opportunity for high data rate optical transceivers across the APAC region. Moreover, it increases the expansion of hyper-scale data centers across the region, boosting the growth of the market. Additionally, three major internet companies in China - Baidu, Alibaba, and Tencent (BAT), are expanding their data centers across the Asian territory. Hence, the increasing expansion of data centers and advanced communication technologies are expected to drive the optical transceiver market in this region.

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