Major growth in the data center for 100GbE is on the horizon due to new silicon entering the market and lower-cost QSFP28 optics, including SR4 and much cheaper 2km LR4 optics,” says Andrew Schmitt, principal analyst for carrier transport networking at Infonetics Research. “Interest in 25GbE is also building momentum for a jump in these formats.”
“In the telecom world, the market for 100G coherent equipment is controlled by five vendors—Alcatel-Lucent, Ciena, Cisco, Huawei, and Infinera—who are vertically integrated, and this is preventing an incursion by standalone component vendors,” adds Schmitt. “We expect volumes in the metro 100G market to ramp in a year and, according to service providers, this will be led by data center and internet content providers.”
Some highlights:
- In the first half of 2014 (1H14), 10G/40G/100G transceiver revenue grew 11% from the same period a year ago, and full-year 2014 sales are expected to reach $2.1B, a 10% increase over 2013
- Infonetics forecasts the coherent WDM market to double in 2014
- Big growth in 40G data center interfaces is impacting 10G volumes, as QSFP+-based interfaces used for high-density 10G start encroaching; growth in the 10G datacom segment is expected to slow beginning this year
- Shipments of 40GbE QSFP optics in 1H14 were lower than anticipated due to softer demand from internet content providers, whose needs remain erratic due to a lack of effective forecasting, irregular demand trends, and unpredictable order patterns
- Interest in 100G data center optics is accelerating, but has yet to be turbocharged by widespread data center deployment in the way 40G QSFP optics have been.
http://www.infonetics.com/pr/2014/1H14-Optical-Transceivers-Market-Highlights.asp