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5G Is Driving the Evolution of Optical Transceiver Industry

We are now starting to see commercial 5G networks going live. Previous generations were focused on consumer and personal communications but now 5G will serve consumers, enterprises and take the internet of things to the next level, where superior connectivity is a prerequisite. Initially, 5G will be a capacity enhancer in metropolitan areas and enhanced mobile broadband and fixed wireless access will be ways for operators to address explosive traffic growth. According to LightCounting, 5G will drive significant growth in the global market for optical transceivers since 2019, especially in China. At the same time, the demand for low-speed optical devices below 10G will gradually decrease and increase in the demand for transceivers of 25G, 50G, and 100G. The change of optical transceiver demand is driven by 5G revolution. RAN architecture of the 5G system will realize the separation of CU and DU, which determines that 5G wireless network will include fronthaul, midhaul and ba...