Optical Connections Magazine Spring 2023


Next-gen transceivers worth US$15.9bn in 2028

Communications Industry Researchers (CIR) has issued Next Generation Transceivers Markets: 2022-2028, a new report which predicts next- generation transceivers will generate US$15.9 billion by 2028 compared to US$850 Million in 2023 as 800G speeds and above move into the mainstream. It says that embedding new approaches– such as coherent optics, co-packaged optics, and more efficient designs—next generation transceivers will be better suited to the needs of the network as demand increases and applications

become more latency sensitive. The report also finds: • Data rate requirements for optical transceivers will grow rapidly as Internet and 5G/6G users increase and latency-sensitive traffic from AI, machine learning (ML), Internet-of-things (IoT) and virtual reality traffic proliferate. Transceiver makers are responding to bandwidth challenges by introducing coherent transceivers throughout the network, even the access segment (Coherent PONs). By 2028, CIR says that

coherent transceivers will rack up almost US$4 Billion in revenue. Nonetheless, transceivers will eventually migrate towards co- package optics as well as engineer a new range of transceivers for edge data centres • PON transceiver markets are about to grow. New transceivers will be required

transceivers will clock up US$300 million in revenues by 2028 • Transceiver supply chains will simplify considerably in the next few years. It is unlikely that the two- tier pricing structure for transceivers will survive as links in the supply chain consolidate. Expect the role of distributors to decline, while OEMs play a growing role in transceiver manufacturing. This latter trend will help cope with the increasing unreliability of China as a transceiver source.

to support “Combo” PONs and “Coherent PONs,” which are PON networks that can carry traffic from many kinds of PON infrastructure. Next-generation PON



ISSUE 32 | Q1 2023

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