May 13 2015
The global market for 10-, 40- and 100-Gigabit optical transceivers sold to telecom service providers dropped to $762 million in 2014, a 7 percent falloff from 2013's $820 million, reports technology market research firm IHSInfonetics.
The surge in 100G is slowing consumption of 10G WDM interfaces, something that will only accelerate once 100G shipments reach greater volume in the metro in 2016
"The decline in the telecom transceiver market is entirely a result of vertically-integrated 100G network equipment manufacturers displacing shipments of 10G and 40G telecom optical modules. We don't foresee a reversal until 2016, when CFP2-ACO solutions hit the market, followed by non-coherent 80km solutions," said Andrew Schmitt, research director for carrier transport networking at IHSInfonetics.
IHS Infonetics' biannual 10G/40G/100G Telecom Optics market size and forecasts report tracks in granular detail service provider optical transceivers by speed, reach, wavelength and form factor.
TELECOM OPTICS MARKET HIGHLIGHTS
- 100G WDM transceiver shipments surged in 2014, owing to huge growth from Huawei and sizable shipments from Alcatel-Lucent, Ciena, Cisco and Infinera
- These 5 vendors control 84 percent of the 100G coherent market, preventing a material incursion by standalone component vendors and suppressing revenue growth for standalone optical modules
- Telecom 10G is beginning a long decline after an epic 15-year run, with tunable and non-tunable interfaces down on a year-over-year basis
- The surge in 100G is slowing consumption of 10G WDM interfaces, something that will only accelerate once 100G shipments reach greater volume in the metro in 2016
- 40G telecom module and network equipment manufacturer (NEM) shipments are vaporizing; shipments outside China are essentially over, and deployments are capped even within China