As modern data center networks today demand high-capacity data transmission, high-speed optical transceivers continue to be of great significance in high-capacity data center connectivity. This article discusses in depth the current situation of the optical transceiver market, and what high-speed optical transceivers can offer for better data center connectivity.
Current Situation of Optical Transceiver Market
Just like any other device, optical transceivers are also subjected to the high-capacity data transmission challenge. Despite the challenge, high-speed optical transceivers continue to be highly popular in data center networking industries. Many industry studies on optical transceivers trends suggest that the demand and significance of optical transceivers are growing by the day.
With the further popularization of cloud services, 5G applications, and artificial intelligence, 800G optical transceivers are gaining momentum. Currently, high-speed optical transceiver purchases including 400G and 800G are mainly concentrated in overseas data centers, including the upgrade and migration of large cloud data centers such as Amazon, Google, Microsoft, and Facebook.
![High-Speed Optical Transceivers for Data Center Connectivity]( "High-Speed Optical Transceivers for Data Center Connectivity")
What Boosts the Data Center High-speed Optical Transceiver Market?
According to Yole Développement's Optical Transceivers for Datacom & Telecom Market 2021 report, the market size of data center high-speed optical transceivers (100G/200G/400G/800G transceivers) is expected to reach 20.9 billion US dollars in 2026. So what is boosting the data center high-speed optical transceiver market?
Increased Investment in Data Center
In the last decade, the infrastructure expenditures in the data center industry have seen great changes. Many enterprises and organizations have cut their investment in traditional hardware and software and opted to outsource those resources to cloud service providers. Thus, the investment in high-capacity data center infrastructure is ramping up rapidly. It is expected that the construction of different types of data centers will maintain a growth rate of more than 20% in the next few years.
Rapid Growth of Data Center Traffic
With boosted investment in data center infrastructure, data centers are also moving towards an ultra-large scale and higher data rates. Open systems, artificial intelligence (AI), machine learning, cloud services, and the ever-expanding number of users and applications all contribute to rapid traffic growth.This exponential growth of data center traffic has driven the robust demand for high-speed optical transceivers. The transition from 100G to 400G and even 800G is already underway.
The Big Role of Optical Transceivers
High-speed optical transceivers play a big role in delivering high-capacity data center connectivity. The following lists what high-speed optical transceivers can offer for data centers.
Efficient Space Utilization
High-speed optical transceivers come in a compact size and various form factors such as QSFP28, QSFP56, and QSFP-DD. They help save a lot of space and are especially useful in tight networking spaces where high data rates are needed. In addition, high-speed optical transceivers are also hot-pluggable, which means they can fit into the existing network without the need to redesign the existing cable infrastructure. This further helps utilize the existing data center space to the fullest.
High-bandwidth Data Transmission
As the name suggests, high-speed optical transceivers are ideal for data center networks that require high-bandwidth data transmission. 100G QSFP28 transceivers can support a data rate of 400Gbps, due to their ability to provide higher data rates of 25Gbps on all four channels. With Pulse Amplitude Modulation 4-level (PAM4) technology, 400G QSFP-DD transceivers can help you easily migrate to 400Gbps with only eight channels each of which supports a data rate of 50Gbps. Some 800G QSFP-DD transceivers even have the maximum data rate of 850Gbps (8x 106.25Gbps).
Varying Transmission Distances
High-speed optical transceivers are usually equipped with LC duplex or MTP/MPO-12 connectors, and deliver transmission distances varying from 70m to 80km. The transmission distances of optical transceivers decide their application scenarios. Therefore, high-speed optical transceivers can be applied to short-distance or long-distance direct connection and interconnection in data center networks.
High-speed Optical Transceivers
Featuring low power, high density, and great quality, our high-speed optical transceivers offer a popular way to help you quickly ramp up to 100G/200G/400G/800G data transmission. Our most high-speed optical transceivers are quality tested for proven interoperability and compatibility in the targeted switch environment, which guarantees flawless and reliable operations.
With advanced features and design, our high-speed optical transceivers offer a mix of high performance, flexibility, and reliability, making them ideal for data center interconnect (DCI) and metro telecom applications.