CIR expects that data rate requirements for optical transceivers will grow rapidly as Internet and 5G/6G users increase and latency-sensitive traffic from AI, machine learning (ML), Internet-of-things (IoT) and virtual reality traffic proliferate. Transceiver makers are responding to bandwidth challenges by introducing coherent transceivers throughout the network, even the access segment (Coherent PONs). By 2028, the report says that coherent transceivers will rack up almost $5.3 Billion in revenue.