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Third-Party Optical Transceivers Market Segmentation By Type (SFP, XFP, QSFP, CFP and Others); and By End User (Telecom, Data Center, Manufacturing and Others) – Global Demand Analysis & Opportunity Outlook 2027

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  • October 2019: Champion ONE have announced the availability of new product line, namely 200G and 400G optical transceivers, to serve the emerging need for 200G and 400G speeds in core networks and data centers across industries.

  • March 2019: FiberStore Co., Limited have announced the launch of FS Box V2, which is a firmware upgrade tool kit for transceivers and DAC/AOC cables, and is aimed to solve the real-time compatibility requirements faced by optical network engineers.

Market Overview

Third-party optical transceiver refers to all those transceivers provided by other vendors other than the original equipment manufacturers (OEMs) and can offer transceivers with the same specifications. Various OEMs such as Cisco, source their optical transceiver from other manufacturers such as Avago, Finisar, Lumentum under contract and rebrand the transceiver and sell them to the end-users at premium prices. The global third-party optical transceiver market is thriving on the back of several market opportunities, for instance, rising 5G network and increasing demand for cloud solutions among others.

Third-Party Optical Transceiver Market

The market was valued at USD 620.0 million in the year 2017 and is anticipated to achieve USD 1355.6 million by 2027 growing at a CAGR of 8.1% over the forecast period 2019-2027. Further, the worldwide market of third-party optical transceiver is anticipated to achieve a Y-o-Y growth rate of 8.18% in 2027 as compared to the previous year.

Third-Party Optical Transceiver Market Y-o-Y Growth

Regional Growth Highlights during 2018-2027

The global third-party optical transceiver market is segmented by regions into North America, Latin America, Europe, Asia-Pacific and Middle East and Africa. Among these regions, the market of North America third-party optical transceiver is anticipated to hold the largest market share of around 32.66% in the year 2027 on the back of upsurge in the demand for communication and channel networks, coupled with the increasing number of data centers in the region and the demand for advanced networks for fast data transfer. Moreover, Asia Pacific is anticipated to gain significant market share by achieving a CAGR of 9.7% over the forecast period. CLICK TO DOWNLOAD SAMPLE REPORT

Third-Party Optical Transceiver Market Share

The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).

Market Segmentation Synopsis

By Type

The global third-party optical transceiver market is segmented by type into SFP, XFP, QSFP, CFP and others, out of which, QSFP segment is anticipated to hold the largest market share of around 31.80% in the year 2027 by achieving a valuation of USD 431.1 million by 2027. QSFP or Quad Small Form-Factor Pluggable optical transceivers is used for fiber channel, ethernet and InfiniBand standards. The small size of the QSFP, which increases the port density, helps in efficient cost saving and is majorly used for connecting network, switches, servers and computers at a distance of 10kms. Additionally, the XFP or 10 Gigabit small form factor pluggable transceiver segment is anticipated to gain significant market share by achieving a CAGR of 9.5% during the forecast period.

Third-Party Optical Transceiver Market Share

Market Drivers & Challenges

Growth Indicators

Increasing Demand for Low Cost Transceivers

Companies are increasingly putting up extra efforts to reduce their operational expenditure so as to maintain a high profitability in their businesses. The transceivers offered by original equipment manufacturers (OEM) of optical transceivers are priced at a higher end as compared to third-party offerings. The third-party transceiver companies also offer a wide range of transceivers with all form factors at a lower price point in comparison to OEMs. Increasing concern for high price of OEMs is raising the demand for third-party optical transceivers, which is anticipated to drive the growth of the third-party optical transceivers market.

Greater Service Offerings by Third-Party Transceivers

Third-party transceiver providers are known to provide a greater list of service offerings as compared to OEMs. Several factors, for instance, longer warranty period, single point contact window for customer service solutions, wide array of transceiver offerings and others are being offered in a larger manner by third-party transceiver providers in comparison to OEMs. Such a factor is anticipated to promote significantly towards the growth of the global third-party optical transceiver market.

Comparison of Service Offerings between OEM and Third-Party


Lack Of Hardware Support From OEMs

Lack of hardware support from OEMs for third party transceivers coupled with message of caution from OEMs against the use of third-party optical transceivers are some of the factors that are anticipated to restrict the growth of the global third-party optical transceiver market during the forecast period.

Competitive Landscape

Some of the affluent industry leaders in the global third-party optical transceivers market are Finisar Corporation, Hummingbird Networks, Champion ONE, Shenzhen Sopto Technology Co., Ltd., ETU-Link Technology Co., Ltd., Curvature, Edge Technologies Ltd., Huihong Technologies, Optcore, TXO Optics, UNOPTIX, DataLight Optics Inc., Xtel Technologies, FiberStore Co., AddOn Networks, and Prolabs Ltd.

Additionally, companies are also making various efforts in the expansion of their business of third-party optical transceivers to fulfill the market demand and stay ahead of competition.

1. Introduction

1.1. Market Definition

1.2. Market Segmentation

2. Research Methodology

2.1. Variables (Dependent and Independent)

2.2. Multi Factor Based Sensitivity Model

3. Market Dynamics

3.1. Drivers

3.2. Challenges

3.3. Opportunities

3.4  Trends

4. Global Third-party Optical Transceiver Market Outlook

4.1. Market Size and Forecast, 2018-2027

4.1.1. By Value (USD Million)

4.2. Market Share and Forecast, 2018-2027

4.2.1. By Type  Global Third-party Optical Transceiver Market,  By Type (2018-2027F)  SFP, 2018-2027F (USD Million)  XFP, 2018-2027F (USD Million)  QSFP, 2018-2027F (USD Million)  CFP, 2018-2027F (USD Million)  Others, 2018-2027F (USD Million)

4.2.2. By End-User  Global Third-party Optical Transceiver Market, By End-User (2018-2027F) Telecom, 2018-2027F (USD Million) Data Center, 2018-2027F (USD Million) Manufacturing, 2018-2027F (USD Million) Others, 2018-2027F (USD Million)

4.2.2. By Region  Global Third-party Optical Transceiver Market, By Region (2018-2027F) North America, 2018-2027F (USD Million) Europe, 2018-2027F (USD Million) Asia Pacific, 2018-2027F (USD Million) Latin America, 2018-2027F (USD Million) Middle East & Africa, 2018-2027F (USD Million)

5. Competitive Landscape

5.1. Company Profiles

5.1.1. Finisar Corporation

5.1.2. Hummingbird Networks

5.1.3. Champion ONE

5.1.4. SOPTO

5.1.5. ETU-Link Technology

5.1.6. Curvature

5.1.7. EDGE Technologies Ltd

5.1.8. Huihong Technologies

5.1.9. Optcore

5.1.10. TXO Optics UNOPTIX

5.1.12 DataLight Optics Inc

5.1.13. Xtel Technologies

5.1.14. FiberStore Co.

5.1.15. AddOn Networks

5.1.16. Prolabs

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