China, data centers to support optical module growth for next five years: LightCounting

Nov. 1, 2016
LightCounting has issued a new optical communications market forecast report in which it predicts optical module and component sales will increase at a compound annual growth rate (CAGR) of 10% from 2017 to 2021. Consumption of optical transceivers and components across China and within the global data center market will drive most of this growth, the market research firm predicts.

LightCounting has issued a new optical communications market forecast report in which it predicts optical module and component sales will increase at a compound annual growth rate (CAGR) of 10% from 2017 to 2021. Consumption of optical transceivers and components across China and within the global data center market will drive most of this growth, the market research firm predicts.

This CAGR is smaller than LightCounting's prediction for this year. The company believes sales of optical components and modules in 2016 will increase by 17% versus 2015. This year's predicted growth figure also is slightly smaller than previous LightCounting estimates (see "Optical component and module sales to grow despite capex declines: LightCounting").

Nevertheless, deployment of 100-Gbps DWDM networks and China and 40 Gigabit Ethernet and 100 Gigabit Ethernet (100GbE) within webscale data center networks will provide the engine for this year's spike as well as for continuing success over the forecast period.

"The increasing contribution of China to the global market was related to its massive deployments of FTTx and wireless fronthaul optics in 2011-2015, but the situation has changed in 2016," explains Dr. Vladimir Kozlov, CEO and founder of LightCounting Market Research. "This year it is demand for 100G DWDM and 100GbE optics that increased China's share of the global market, and we think this trend will continue in 2017-2021."

Overall, LightCounting expects sales of optical products to the cloud data center market will increase by 20% per year on average during the new report's forecast period.

The Market Forecast report forecasts demand through 2021 for optical components and modules used in Ethernet, Fibre Channel, SONET/SDH, CWDM/DWDM, wireless infrastructure, FTTx, and high-performance computing (HPC) applications.

For related articles, visit the Business Topic Center.

For more information on optical modules and suppliers, visit the Lightwave Buyer's Guide.

Sponsored Recommendations

The Journey to 1.6 Terabit Ethernet

May 24, 2024
Embark on a journey into the future of connectivity as the leaders of the IEEE P802.3dj Task Force unveil the groundbreaking strides towards 1.6 Terabit Ethernet, revolutionizing...

Data Center Interconnection

June 18, 2024
Join us for an interactive discussion on the growing data center interconnection market. Learn about the role of coherent pluggable optics, new connectivity technologies, and ...

The Pluggable Transceiver Revolution

May 30, 2024
Discover the revolution of pluggable transceivers in our upcoming webinar, where we delve into the advancements propelling 400G and 800G coherent optics. Learn how these innovations...

From 100G to 1.6T: Navigating Timing in the New Era of High-Speed Optical Networks

Feb. 19, 2024
Discover the dynamic landscape of hyperscale data centers as they embrace accelerated AI/ML growth, propelling a transition from 100G to 400G and even 800G optical connectivity...