Mega Datacenters Will Consume 30% of Ethernet and 20% of DWDM Optics Sold in 2021, Driven by Increasing Use of 100G

EUGENE, OR--(Marketwired - July 01, 2015) - Investments by Web2.0 companies in mega datacenters and supporting networking infrastructure has created a new and very dynamic segment in the optical components and modules market. The latest report from LightCounting offers an in-depth look at the development of this new market from 2010-2014, and its growth in 2015-2021. The database provided with this report presents a detailed sales projection of more than 50 product categories of Ethernet optical transceivers and the DWDM optics used to interconnect the data centers of the leading Web2.0 companies.

"It is an exiting time for the industry!" - commented Dale Murray, Principal Analyst at LightCounting and lead author of the report. "Demand for 40GbE and 10GbE optics will remain strong in 2015-2021, but it is the emerging opportunity for 100GbE in data centers that makes it really exciting. In times like this, it is more important than ever to have a market forecast based on real market drivers rather than subjective opinions often fueled by excitement."

LightCounting's forecast methodology is based on correlation between the growth rates of aggregated bandwidth of optical connectivity and Internet traffic. It segments the total market for Ethernet optical transceivers into three parts: mega data centers, telecom and enterprise networks, making it possible to account for the different dynamics of these market segments.

The report also uses the latest information on datacenter network traffic, provided by Google, indicating that traffic growth inside of mega datacenters follows a pattern similar to the pattern observed in many other networks, including these of telecom service providers, scientific organizations, and Internet exchanges. While the growth is indeed very fast, it is slowing down gradually in terms of percentage of the total.

The latest data from Google also offers a metric for segmenting the demand for optics from mega datacenters in 2008-2014 and extrapolating it to 2015-2021.

The total sales of Ethernet optical transceivers are projected to reach $4.9 billion in 2021 -- up from $1.6 billion in 2014. Annual shipments will exceed 50 million units in 2019 and continue to grow. Mega data centers will consume about 30% of the shipments and account for more than 50% of the total sales by 2021.

Interconnecting the data centers drives demand for DWDM optics. Shipments of 100G and 400G DWDM ports for mega data center interconnects (Mega-DCI) will account for 20% of the total DWDM ports sold in 2021 -- up from about 10% in 2014.

Detailed information, including a breakdown of the products by data rate, reach and form factor is available in the report database. The report has an extensive focus on 40GigE and 100 GigE transceivers. It provides a summary of technical challenges faced by 100GigE transceiver suppliers, including a review of the latest products and technologies introduced by leading suppliers.

The following vendors shared confidential sales data with LightCounting for this report: Acacia, Accelink, Applied Optoelectronics, Avago, Coadna, Delta, Eoptolink, Finisar, Fujitsu, HG-Genuine, Hisense, Hitachi Cable, Innolight, JDS Uniphase, NEC, NeoPhotonics, Oclaro, OE Solutions, Source Photonics, Sumitomo, Superxone, and TE Connectivity.

To purchase the report or subscribe to our services, please contact George Stojsavljevic at George@lightcounting.com

LATEST AND UPCOMING RESEARCH

• Quarterly Market Update Report, June 2015
• Next Generation FTTx Optics, July 2015
• Quarterly Market Update Report, June 2015
• 40G and 100G Data Center Interconnects, June 2015
• State of the Industry Report, May 2015

ABOUT LIGHTCOUNTING MARKET RESEARCH
LightCounting is a leading optical communications market research company, offering semiannual market updates, forecasts, and state-of-the-industry reports based on its analysis of primary research with dozens of leading module, component, and system vendors as well as service providers and other users. LightCounting is the optical communications market's first choice source for the accurate, detailed, and relevant information necessary for doing business in today's highly competitive environment. For more information, visit: www.LightCounting.com or follow us on Twitter at @LightCounting.