Optical transceiver market up 35% in 1H11 over 1H10; 100G ramp-up will be faster than 40G …
BOSTON, Massachusetts, October 31, 2011—Market research firm Infonetics Research today released excerpts from its latest 10G/40G/100G Optical Transceivers Market Size and Forecast, the industry's most detailed report tracking 10 Gigabit, 40 Gigabit, and nascent 100 Gigabit optical transceivers and transponders sold into the optical transport, enterprise, and carrier routing and switching markets.

ANALYST NOTE

"Tunable XFP optical transceivers were the standout product in the first half of 2011, with shipments up 59% over the previous 6-month period, putting the category on track to increase 200% in 2011 over 2010. Multiple suppliers are now in the marketplace and that appears to be the catalyst customers needed to begin adoption. Also of note were very strong shipment trends in 100GBase LR4 modules, demonstrating the widespread prototyping and trial activity now underway among 100 Gbps vendors and service providers," notes Andrew Schmitt, directing analyst for optical at Infonetics Research.

OPTICAL TRANSCEIVER MARKET HIGHLIGHTS

• Infonetics Research forecasts the global 10G, 40G, and 100G optical transceiver market to grow to $2.6 billion by 2015, more than doubling from 2010, when the market was $1.2 billion
• Optical transceiver revenue is up 35% in the first half of 2011 (1H11) compared to the first half of 2010 (1H10)
• By 2015, the 40G and 100G segments of the market together will make up 40% of total optical transceiver revenue
• Revenue for 40G long reach transceivers jumped 93% from 2H10 to 1H11, and overall 40G port shipments grew 29%, with a surge in 40G coherent shipments by network equipment manufacturers (NEMs)
  • Ciena, Cisco, and Alcatel-Lucent are ramping up production amidst an aggressive pricing push to grab coherent footprint
• Growth in the 100G market will outpace growth in the 40G market starting in 2013 as multiple suppliers transition to production; pricing for 100G products is expected to compare favorably to 40G by 2013 and at these prices, customers show a preference for 100G technology
• NEMs developing their own 100G solutions control 70%+ of the optical equipment market share, leaving long reach transponder vendors to fight for the remaining 30% of the market

REPORT SYNOPSIS

Infonetics' 10G/40G/100G Optical Transceivers report provides in-depth analysis, market size, and forecasts through 2015 for manufacturer revenue and units shipped. The report analyzes the market by module, reach, wavelength, and form factor, tracking the following long and short/intermediate reach optical transceivers and transponders:

• 10G modules by tunable, WDM (fixed C-band), 1550nm, 1310nm, and 850nm wavelengths, split by form-factor: 300 pin, XFP, SFP+, NEM-developed, and other (X2, XENPAK, etc.)
• 40G modules by tunable, short reach, intermediate reach, and long reach wavelengths: DPSK, DQPSK, PM-QPSK, opto duo-binary (ODB) and other, NEM-developed Coherent, NEM-developed Non-Coherent, 40GBase-FR, 40GBase-LR4, and 40GBase-SR4
• 100G modules by tunable, short and intermediate reach, and long reach: 100G DWDM, 100G DWDM NEM-developed, 100GBase-LR4 (including 10x10 MSA), and 100GBase-SR10

Unit volume forecasts are based on Infonetics' 10G/40G/100G ports forecast, aggregating trends from a wide range of enterprise, optical transport, and carrier routing and switching equipment.