SFP (Small form-factor pluggable transceiver) Products Market 2021 Detailed Competitive Outlook by 2027

Transceiver is a device that performs both transmission and reception of signals with a common circuitry over a network. An optical transceiver, also called as fiber optic transmitter and receiver, completes the operation of transmission by converting the electrical signal in light pulse and vice versa at the receiving end. In case of fiber optics, the information is sent in the form of light pulses. The light pulses need to be converted into electrical signals in order to be used by an electronic device. This photoelectric conversion is carried by the optical module equipped at the end terminals of the network. The light from the end of connecting cable is coupled to the receiver, where a detector carries the conversion of the light signal back into an equivalent electrical signal. A laser diode or a light emitting diode (LED) is used as the light source for transmission of information. There are numerous optical transceiver modules available in the market differing in the type of data transmission speed, connections and packing forms. Some of the types of optical transceivers available in the market include SFP, SFP+, X2, XFP, Xenpak, GBIC and others. Furthermore, as per the type of connection, there are single mode (SM), multi-mode (MM) and Wavelength Division Multiplexing (WDM) modules.

Optical transceivers are the modernized components for the efficient use of network. The major factor bolstering the adoption of optical transceiver components is their low cost transport of information over the network. Additionally, optical transceivers are preferred over conventional transceiver devices as they require low maintenance cost as compared to conventional devices. Optical transceivers support large bandwidth and hence, are widely used in high speed network infrastructure such as broadband internet connections. These are used as both carriers and data centers. Optical transceivers are deployed to update the communication networks and data center networks for efficient traffic management with higher speeds. Optical networks are the backbone for mobile communication network. With growing demand for reliable and high speed mobile communication, optical transceivers are increasingly being used for the communication network infrastructure.

Geographically, North America is seen as highly attractive market for the optical transceivers due to increasing demand for sophisticated communication network. In addition, the rising deployment of 100G transceivers for high speed networks is another factor contributing to high demand for optical transceivers. Europe is equally fast in adoption of 100G transceivers and follows North America in terms of demand for optical transceivers. Moreover, the combined use of 40G and 100G modules in Europe and North America is expected to show steady growth in demand for optical transceivers in near future. In Asia-Pacific, China is expected to be the fastest growing market for optical transceivers owing to its increasing demand for deployment of 100G equipment. The updating of the existing communication networks in this region is another factor which is expected to boost the growth of optical transceivers market in near future.

In North America, JDS Uniphase Corporation, Oclaro Inc., Finisar Corporation, Cisco Systems, Alcatel-Lucent and others are the manufacturers of optical transceivers. In Asia-Pacific, Avago Technologies and Wuhan Telecommunications Devices Co. Ltd. are some of the leading manufacturers of optical transceivers.