Optical component revenues climb in 3Q22 thanks to 400G: Cignal AI

Jan. 12, 2023
Datacom optical component revenues reversed two quarters of decline to grow 14%, while telecom component revenue grew 6% year-on-year in the third quarter of 2022, according to Cignal AI.

Datacom optical component revenues reversed two quarters of decline to grow 14%, while telecom component revenue grew 6% year-on-year in the third quarter of 2022, according to Cignal AI. The market research firm states in its new 3Q22 Optical Components Report that 400G modules led the turnaround, particularly in the datacom space.

"400 Gbps was the success story both inside and outside of the data center this quarter, as 400GbE data center optics shipments recovered from a weak Q2 and 400ZR/ZR+ drove telecom bandwidth growth for DCI [data center interconnect] applications,” said Scott Wilkinson, lead analyst for optical components at Cignal AI. “Looking forward to upcoming Q4 results and into 2023, telecom component demand will continue its recovery, while near-term growth of datacom optics will soften as inventory is absorbed.”

Shipments of 400GbE optical modules rose 50% versus the year-ago quarter, says Cignal AI. As an example of the reversed momentum, 400GbE-DR returned to almost half of total 400G unit shipments in 3Q22, after a decline due to a slowdown in orders at Amazon. However, expected lower demand from hyperscale operators for 400GbE has led to forecast cuts, the market research firm reveals.

In the coherent module realm, growth of Gen60C coherent modules (400ZR/ZR+ and variants) tapered as major customers absorbed inventory. That said, CFP2 versions grew sharply as traditional telco vendors increased sales. Shipments of Gen 30 coherent modules at 100 Gbps and 200 Gbps showed a dramatic drop in 3Q22, thanks mainly to declines in sales by Chinese vendors. Coherent technology did get a bounce from consumer 3D sensing revenue gains, claiming two-thirds of sales in the segment.

Innolight and Coherent benefited the most from the datacom component uptick, while Lumentum stayed atop the telecom component supply leaderboard during the quarter (see figure above).

Cignal AI’s 3Q22 Optical Components Report provides revenue market share results for companies selling telecom, datacom, industrial, and consumer optical components. The report provides details on component unit shipments, including coherent and direct-detect telecom modules and 400GbE datacom modules. Forecasts for revenue and component unit shipments for 2022-2026 are provided as well.

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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.

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