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The optical transceiver market is expected to reach USD 25.0 billion by 2029, with a CAGR of 13.0% from 2024 to 2029. The growth is driven by the increasing popularity of bandwidth-intensive applications like virtual reality and augmented reality, and the emerging focus on 5G networks. Optical transceivers are uniquely positioned to meet the needs of these applications due to their high bandwidth and low latency capabilities. The market is segmented by form factor, data rate, wavelength, fiber type, protocol, application, and region. The key challenge is minimizing power consumption, while the key opportunities lie in advancements in optical technology.