Global Coherent Transceiver Shipments To Reach Nearly $13 Billion By 2027

According to market research firm Dell ＇Oro Group, global coherent optical transceiver shipments will grow at a compound annual growth rate of 17 percent over the next five years. In addition, the coherent optics market is undergoing a structural shift with the advent of small form factor pluggable optics, which will increase the use of coherent technology in routers and Ethernet switches.
The group's latest Coherent Optics advanced research report finds that the coherent optics market is expected to reach nearly $13 billion by 2027, driven by modular/embedded and pluggable devices.
Pluggable transceivers are expected to grow at the highest rate and contribute the majority of volume growth over the next five years. Moreover, the use of coherent transceivers on DWDM systems will continue to be the business that accounts for the largest market revenue share.
However within a short period of time, the use of coherent optics on router and switch platforms will reach material levels. The report also states that coherent optics deployed on router and switch platforms will account for more than 50% of the annual growth in transceiver shipments throughout the forecast period. This will be due to the availability of ZR optics (starting at 400ZR and continuing through 1600ZR).
Jimmy Yu, vice president of market research for optical transport at Dell ＇Oro Group, said, "Demand for coherent technology is expanding, in part due to the market's ongoing need to complement better, lower-power, and higher-capacity transceivers to meet the demands of future global networks."
Sameh Boujelbene, vice president of Ethernet switch market research at Dell ＇Oro Group, said, "Historically, most coherent optics have been used primarily in DWDM systems. However, as vendors make strides in developing smaller, more energy-efficient coherent transceivers, their use is rapidly expanding. This expansion includes not only the range of platforms they can support, but also the diversity of applications they can fulfill."
The report includes a five-year market forecast for the overall use of coherent optics, including optical plugs and embedded modules (at speeds up to 1.6 Tbps) worldwide.