Third-party Optical Transceivers Market Size & Share, by Type (SFP, XFP, QSFP, CFP); End-user (Telecom, Data Center, Manufacturing); - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 2191
  • Published Date: Sep 04, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Third-party Optical Transceivers Market size is estimated to reach USD 7.5 Billion by the end of 2035, growing at a CAGR of 10% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of third-party optical transceivers was USD 2.3 Billion. The market growth can be estimated by looking at the surging demand for cloud solutions. It is important for transmitting the data at high speed in cloud computing with more flexibility. More than 80 % of the companies around the globe use some time of cloud service.

The third-party optical transceivers offer eco-proportional solutions to promote energy efficiency, reduction in carbon footprint, and drive green practice at the industry level. The demand for environmentally friendly third-party optical transceivers has increased as a result of the increasing focus on sustainability and energy efficiency, which is in line with growing demands for responsible and ethical solutions.

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Third-party Optical Transceivers Sector: Growth Drivers and Challenge

Growth Drivers

  • Increasing Cost Effectiveness- One of the most significant drivers for the adoption of third-party optical transceivers is their cost-effectiveness compared to OEM-Branded Transceivers. Third-party options are often more competitively priced, which allows businesses to save money on network infrastructure without compromising on quality, leading the way in low cost is boosting the market.
  • Rising 5 G Network: Owing to next generation wireless network 5G rollouts vary by organization, no standardized infrastructural base has been established. Due to fast technical upgrades, many pre-deployed modules are likely to be abandoned. To limit the risk of uncertainty, the deployment of devices and modules at each stage necessitates cost-cutting methods. The 5 G network connections surged by nearly 75 % from the end of the year 2021 to end of the year 2022.
  • Growing Benefits Provided by the Vendors-: Third-party optical transceiver vendors offer a wide array of options in terms of data rates, form factors, and reach capabilities. This allows network designers and administrators to tailor their networks to specific requirements, creating efficient and scalable solutions.  Moreover, reputable third-party vendors often offer warranties and technical support that match or even exceed those provided by OEMs. This level of support gives businesses confidence in the reliability and performance of the transceivers they purchase.


  • Support and Technical Issues in Third-party Optical Transceivers- Using third-party optical transceivers, there is a possibility that OEMs do not provide the same level of hardware support or technical assistance compared to their own branded transceivers. The lack of support can become problematic during troubleshooting network issues or diagnosing compatibility problems. OEMs may insist on using their own transceivers as a part of their support policy, which can lead to challenges in getting comprehensive technical assistance if third-party transceivers are being used. This lack of direct support from OMEs might result in longer solution times for network-related issues and hinder the overall reliability and maintenance of the network.
  • Compatibility and Compliance Concerns
  • Limited Availability for Specific Configuration.

Third-party Optical Transceivers: key Insights

Base Year


Forecast Year



~ 10 %

Base Year Market Size (2022)

 ~ USD 2.3 Billion

Forecast Year Market Size (2035)

 ~ USD 7.5 Billion

Regional synopsis

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Third-party Optical Transceiver Segmentation:


The QSFP segment in the third-party optical transceivers market is set to show a tremendous share during the forecasted timeframe. QSFP+ is an optical transceiver that has the same physical connector as QSP but with support for faster speeds and more data channels. In high-speed networking applications, for example in data centers and the storage space network, this type of optical transceiver is used.

  End User (Telecom, Data Center, Manufacturing)

Third-party optical transceivers market from the telecom segment is estimated to hold the highest share in the upcoming years with a share of 41 %.  The demand for optical transceivers in telecommunications applications is expected to increase as more and more users make use of data transmission services, particularly in emerging economies. Overall consumers of the telecom sector are nearly about 222.7 million people as per the reports.

Our in-depth analysis of the global market includes the following segments:


  • SFP
  • XFP
  • QSFP
  • CFP

        End User

  • Data Center
  • Manufacturing
  • Telecom

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Third Party Optical Transceivers Industry- Regional Synopsis

North American Market Analysis

The third-party optical transceivers market in the North America region is estimated to garner the largest growth with a CAGR of 6.5%. This growth is due to the presence of a robust IT and telecommunications industry in the region. Moreover, the North America region has adopted the advancement of network technologies such as 5G, and cloud computing.

APAC Market Analysis

Asia Pacific third-party optical transceivers market is projected to have significant growth during the forecast period as a result of factors like the increased adoption of OCT modules for data centers, and growing demand for FTNs & communication networks with higher speeds. For instance, the data centers in India are expected to reach more than 180 by 2025. In addition, the growth of this regional market is being driven by increasing development and initiatives in order to improve digital infrastructure and rising demand for more bandwidth.

Research Nester
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Companies Dominating the Market Landscape;

    • AddOn Networks
    • Business strategy
    • Key product offerings
    • Financial performance
    • Risk analysis
    • Recent development
    • Regional presence
    •  SWOT Analysis
    • Amphenol ICC
    • Champion ONE
    • DataLight Optics
    • C-Edge Technologies
    • ETU-link Technology
    • Finisar Corporation
    • FluxLight Incorporated
    • Broadcom Inc.
    • Eoptolink Technology Inc.


In The News

  • Broadcom Inc, launched BCM85812, a 5nm 100/lane optic PAM-4 DSP PHY with integrated Transimpedance Amplifier (TIA) and lasers driver best suited for 800G DR8, fr4, 800G AOC module applications.
  • Eoptolink Technology Inc., Ltd., has boosted its portfolio for 50G SFP56. The upgraded offer now includes longer distances of up to 40 km and trilateral support. In the 50G portfolio are available single fiber and duplex fiber optical transceivers. All models support the option of carrying up to 50G, 25G, or 10GEthernet in combination with a trirate capability.

Author Credits:  Abhishek Verma, Hetal Singh

  • Report ID: 2191
  • Published Date: Sep 04, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The growing rate of increasing demand for low-cost transceivers are the major factors driving the third-party optical transceivers market.

The market size is anticipated to attain a CAGR of 10% Over the forecast period, i.e., 2023 – 2035.

The major players in the market are DataLight Optics, C-Edge Technologies, ETU-link Technology, Finisar Corporation, FluxLight Incorporated, Broadcom Inc., Eoptolink Technology Inc., and others.

The QSFP type segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The market in the North America region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Third-party Optical Transceivers Market Report Scope

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