LightCounting foresees double-digit optical component sales growth through 2027

May 5, 2022

Growth in demand for optical transceivers, particularly for DWDM and Ethernet applications, will provide the most momentum during the forecast period, the company says.

Stephen Hardy

LightCounting expects continued strong growth for optics through 2027.

Market research firm LightCounting expects double-digital sales growth for optics through 2027, according to its newly released optical components forecast. Growth in demand for optical transceivers, particularly for DWDM and Ethernet applications, will provide the most momentum during the forecast period, the company says.

LightCounting expects a 12% CAGR in 2022-2027, despite current supply chain constraints. This includes a 17% forecasted climb in optical transceiver revenues this year, which continues a growth trend seen in 2020 (9%) and 2021 (17%) after a hiccup in 2019 (see “Ethernet transceiver sales to decline 18% in 2019: LightCounting”). The market research firm notes that supply chain issues probably have led to stockpiling among transceiver users as well as moderated typical price declines; these factors likely contributed to the double-digit improvement seen last year.

While DWDM, Ethernet, and wireless applications have fueled increased demand over the past few years, LightCounting expects the wireless segment to wane during the forecast period. Analysts at the company point to price reductions and cyclical declines in unit shipments as the cause of comparative weakness in the wireless sector through 2027. Meanwhile, sales of optical interconnects, particularly active optical cables (AOCs), will grow at a 10% CAGR over the next 5 years, LightCounting believes.

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About the Author

Stephen Hardy | Editorial Director and Associate Publisher, Lightwave

Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.

Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.

He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.

You can connect with Stephen on LinkedIn as well as Twitter.