100G to drive $2B growth in optical transceiver market, says Infonetics
As more service providers deploy 100G optical equipment in their core networks, the technology is impacting the growth of optical transceivers.
Infonetics reports that once it compiles the final numbers for 2012, it expects the overall optical transceiver market to rise about 7 percent over 2011, and see double-digit growth near $2 billion this year.
"There's been a flurry of prototyping, sampling and trial activity all around the world, including China, where plans for 100G have been bumped up by 12 months since we spoke to operators there last spring," said Andrew Schmitt, principal analyst for optical at Infonetics Research, in a release announcing the new report. "In line with our aggressive forecasts, worldwide shipments of 100G coherent transceivers more than tripled in 2012, and will at least double in 2013."
Although unit shipments of 10G, 40G and 100G transceivers will increase, the ongoing movement to 100G and price declines will put revenue pressure on both 10G and 40G.
Looking toward 2015, Infonetics forecast that 40G and 100G transceiver revenue will "match 10G transceiver revenue for the first time" while optical vendors to supply more than 3/4 of all 100G long reach ports by 2014 or 2015.
Throughout 2012, there was no shortage of 100G deployments in the United States and Europe, with various carriers either hatching trials or beginning large-scale deployments. In the United States, incumbent telcos Verizon (NYSE: VZ) and CenturyLink (NYSE: CTL) separately launched plans to bring 100G into their networks this year. Likewise, competitive carriers XO and Zayo announced plans to integrate 100G capabilities into number of major U.S. markets.
European providers were no less aggressive on the 100G front. In addition to BT (NYSE: BT), TeliaSonera International Carrier (TSIC) deployed 100G gear from Nokia Siemens Networks and Infinera (Nasdaq: INFN) in both its European and U.S.-based networks.
- see the release