Hyperscale network operator demand drove purchases of 400GbE and 800GbE datacom and 400ZR telecom optical modules to record levels, according to the latest Optical Components Report from research firm Cignal AI. Well over 3 million high-speed datacom modules were shipped this quarter in support of AI cluster interconnect and traditional computing applications.
“800GbE vendor shipments have yet to match demand, though nearly as many 800GbE modules shipped in 1Q24 as in all of 2023,” said Scott Wilkinson, Lead Analyst at Cignal AI. “While some vendors have reported that lead times are coming down, the demand for 400GbE and 800GbE modules remains exceptionally strong and we anticipate that datacom segment revenue will double in 2024.”
Additional 1Q24 Optical Component Report Findings:
- Spending on Datacom optical components was up more than 90% YoY as AI applications of 400GbE and 800GbE optical modules for AI applications drove demand to record levels.
- Combined unit shipments of 400GbE and 800GbE Datacom modules across all SR/DR/FR/LR specifications jumped over 25% QoQ. Innolight led all vendors in shipments of Datacom modules.
- Telecom optical module shipment growth was concentrated in 400G coherent pluggables, which were up more than 35% YoY. Marvell and Acacia experienced strong shipment growth.
- Outside of pluggable coherent, shipments of Telecom components declined YoY, with segment revenue dropping -26% YoY.
- The coherent module market size declined to under $5 billion in 2023 but it will grow in 2024 and is expected to approach $10 billion in 2028.