Global Optical Transceiver Market Growth in Germany by 2026

Germany is expected to be driven by its leading 5G readiness, strong infrastructures, and cloud-based services integrated with big data, AI, and IoT


Northbrook, IL 60062 -- (SBWIRE) -- 11/06/2023 -- Germany plays a vital role in the growth of the optical transceivers market. The Digital Economy and Society Index (DESI) compiles indicators on Europe's digital performance and tracks EU member countries' progress.

According to Digital Economy and Society Index, Germany ranks first among EU countries in terms of 5G readiness. The country has launched several initiatives to advance digitization, including initiatives in IT security, supercomputing, artificial intelligence, and blockchain. The country's digital transformation is correlated with the rising demand for cloud services. Cloud-based services, along with big data and IoT, are key enablers of digitalization. The growing number of data centers for managing cloud-based platforms is expected to increase the demand for high-speed optical transceivers in the German market.

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In addition to cloud-based services, big data and IoT technology also play an important role in increasing the investments in the data center market as enterprises in Germany are observing high data generation across industries. In August 2023, Google (US) launched its Berlin-Brandenburg Cloud Region in Germany, catering to local customers' needs and ensuring seamless scalability and disaster recovery. This marks Google's 12th region in Europe. Similarly, in May 2022, Alibaba Cloud (China), the global third-largest public cloud provider, unveils a cutting-edge AI-focused data center in Frankfurt, Germany. The new data center is tailored for automotive, retail, and manufacturing sectors, that focuses on elevating AI innovations. Such significant openings of newer data centers will fuel the adoption of optical transceivers in the region.

Along with the increasing demand for higher data transmission rates, the market for 5G technology is also increasing across Germany. Optical transceivers are increasingly used in data centers and high-performance computing (HPC), among others. Thus, the increased requirement of bandwidth in mobile telephone networks, data center networks, and other enterprise applications fuels the growth of the optical transceiver market in Germany.

The production volume of vehicles is expected to increase as exports continue to increase due to strong international demand. This can be directly correlated to the increase in demand for optical transceivers for smart operators in modern cars and electric cars. Moreover, manufacturers such as BMW (Germany) and Volkswagen (Germany) continue to deploy robots in the manufacturing of cars and operate these robots via data centers. The automated process of manufacturing general motor cars, electric cars, and smart cars as well as the end products, requires optical transceivers for their connectivity and transmission of information at high speed, thereby fueling the demand for optical transceivers in the German market.