Global Optical Transponder Market is estimated to witness substantial growth in the forecast period due to high adoption of optical wireless DAS (distributed antenna system). A transponder or (optical-electrical-optical) OEO is a device that sends and receives optical signal from a fiber. It is typically known by its data rate and determining maximum distance the signal can travel. A transponder is capable of converting optical and electrical signals, serialization and deserialization, monitoring and controlling. They test compatibility and interoperability including receiver sensitivity, function of (BER) bit of error, jitter performance, and transmission performance.

Optical transponders market is driven by increase in preference of copper wires to optic fibres, growing need for improved network bandwidth, high acceptance of optical wireless DAS, growing number of FTTx (Fiber To The x) connections, and explosive traffic of the internet. DAS (distributed antenna system) offers better indoor network coverage for the growing wireless traffic of the internet. Here, DAS counters low signal jamming that exceeds the available bandwidth. FTTx reduces installation price of high bandwidth services at home. FTTH (Fiber To The Home) replaces copper, cable, or telephone wires with fiber optic cable for high speed services.

Emergence of new telecommunication standards like 4G and 5G is stimulating customers to adopt higher bandwidth services and applications. Hence, large enterprises are opting cloud services like Google Apps, Microsoft Office 365, and SAP. Moreover, advantages of optic fibres, such as cost-effectiveness, lightweight, non-flammability, and transmission of higher bandwidth is driving the optical transponder industry.

Shifting trend of (OTNs) Optical Transport Network towards (WDM) Wavelength-Division Multiplexing architecture is an emerging trend in the optical transponder market. Nonetheless, different architecture requirements from various applications is a challenge for the market.

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Optical transponder industry is categorized on the basis of transponder type, application, and geography. On the basis of transponder type, the market is divided into 155 Mbps, 2.5 Gbps, and 10 Gbps. 2.5 Gpbs segment is predicted to lead the market owing to wide range of service types from 155 Mbps to 2.5 Gbps. It includes services, such as SONET OC-3 through OC-48, ESCON, Gigabit Ethernet, SDH STM-1 through STM-16, 1- or 2-Gbps Fibre Channel, and other services.

In terms of application, optical transponders market is split into data transmission network, broadband campus network, enterprise network, computer data transmission network, and cable television. Data transmission network and computer data transmission network segment lead the optical transponder industry in the forecast period due to rapid industrialization and high demand from Datacom industry.

Geographically, optical transponder market is segmented as North America, South America, Europe, Asia Pacific, and Middle East & Africa. Asia Pacific is expected to dominate the market in the coming years due to increase in disposable income of consumers and change in standard of living. Furthermore, North America and South America contribute significantly to the market.

The major players in optical transponders industry are Hitachi Metals, OpLink, Fujitsu, Oclaro, JDSU, Hioso, Sumitomo, Bricom, Avago, Source Photonics, Wantong, Huahuan, Emcore, CMR, WTD, Finisar, Green Well, Ruby Tech, and NeoPhotonics.

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