The reason for the Surge in the Optical Transceiver Market
Communication engineers consider optical transceivers as the backbone of network systems. This is because these high-speed serial receivers support a larger number of electronic devices, communication gadgets, and information servers.
Steadily, the sale of optical components has increased in the last five years with more expectations of growth in the coming years. A report by Technavio’s market research projects the global optical transceiver market growth to be rapid, expected to post a CAGR of over 16% from 2016 to 2020.
The low cost of transporting data and vital information over the network is the major factor supporting the use of optical transceiver equipment. The components are widely adopted in communication infrastructure where high-speed and efficiency support large bandwidth load is crucial.
The growth in demand for network bandwidth is the driving force of requests for optical transceivers components. As the need for rapid internet increases, it places a direct ordering on optical transceiver supply.
The mobile telecommunication system adoption of 4G and 5G network standards is making the demand for higher bandwidth networks a must for consumers. Factors that are driving these demands include the increase in the capacity of communication devices like mobile phones, tablets and wearable gadgets that thrive on high-speed internet services.
The increase in the development of data center services backing video streaming, cloud computing, social networking, and e-commerce support is a major factor driving the need for optical transceiver supply. The increase in deployment of 100G transceivers to high-speed network is contributing to the demand in optical transceivers markets for the future.
Also, many large scale businesses are increasingly depending on cloud services, e.g., Microsoft Office 365; SAP and Google Apps, as data centers take advantage of high-speed communication networks offered by these optical transceiver powered systems. This development is increasing the need for high bandwidth services and advanced networks which ultimately is increasing the demand for optical transceivers supply.
Optical Transceivers Growth is Market Influenced
The Persistence Market Research Report says the highly attractive and major market for transceivers are North America and the European markets because of the high demand for an advanced communication network that delivers powerful high bandwidth transmission.
On the other hand, the projected fastest growing optical transceivers market is China and the APAC region because of the increasing demand for 100G equipment deployment.