Data Center and 5G Applications: New Opportunities for Third-Party Compatible Optical Transceivers

Third-party compatible optical modules not only can compete with the original optical modules in quality, but also have better prices, compatibility and service, which is why third-party compatible optical modules are becoming more and more popular with users. 

With the rise of third-party compatible optical transceivers, many third-party compatible optical transceiver suppliers have emerged on the market. These third-party compatible optical transceiver suppliers offer optical transceivers at a much lower price than those offered by OEMs, but with the same quality and better service. This advantage is conducive to the rapid development of third-party compatible optical transceivers, and its share in the optical transceiver market is also increasing. Research Nester, a leading provider of strategic market research and consulting services, predicts that the global third-party compatible optical transceiver market share is expected to grow from $620 million in 2017 to $1,355.6 million by 2027, with a year-on-year growth rate of 8.18% in 2027 compared to the previous year. 

The global third-party compatible optical transceiver market is booming with the support of two major market opportunities, one is the rising demand for high-speed networks in 5G networks and cloud solutions, and the other is data center upgrades, such as 100G upgrades. Since the advent of 5G, more and more countries have joined the ranks of 5G commercialization. The large-scale rollout of 5G network facilities around the world will further promote the development of optical modules such as 10G WDM SFP+, 25G DWDM, and 100G QSFP28. The cost-effective third-party compatible optical module provided by third-party compatible optical transceiver suppliers can help service providers save costs to a certain extent. As a variety of Internet applications emerge and data center traffic grows dramatically, so does the demand for high-speed (often more than 100G) optical transceivers. Youssos Technology can provide 25G/40G/100G/200G/400G optical modules with the same performance as the original optical module. 

Opportunities often come with challenges, and not all third-party compatible optical module suppliers are qualified. Many small third-party compatible optical transceiver suppliers are unable to ensure their quality because they do not have a dedicated technical team, advanced equipment and standard testing procedures to verify the performance of optical transceivers. Especially like the expensive 400G optical module, if its quality cannot be guaranteed, it may cause greater losses to the user. Therefore, it is important to ensure that third-party compatible optical transceivers are tested and of good quality, which is currently a major challenge for many third-party compatible optical module suppliers. Another big challenge is that some OEMs do not support third-party compatible optical modules, so users will be alerted when using third-party compatible optical modules on some branded devices, which requires third-party compatible optical module suppliers to always provide qualified products and better services to win the trust of customers.