Optical Ethernet components to net $2.7 billion by 2011, says report

May 25, 2006 Charlottesville, VA -- In a new report to be released June 5, industry analyst firm CIR forecasts that the optical Ethernet components market will net $2.7 billion in revenues by 2011. Copper-based transceivers, meanwhile, will achieve revenues of $4.7 billion over the same period.

According to the report, 2008 appears to be a breakout year for the 10-Gigabit Ethernet (10-GbE) market due in part to the burgeoning use of 10 Gbits/sec for high-end servers, many of which now are forced to use multiple 1-Gbit/sec links. With prices falling for 10-Gbit lasers and the arrival of low-cost standardized copper-based 10-Gbit/sec connections, 10 GbE is rapidly becoming an economically viable option for both server and inter-switch links in data centers and corporate networks.

Meanwhile, GbE is now the Ethernet-of-choice for almost every business-class computer, which, in turn, will force the issue of 10-GbE deployments even further. As these transitions occur, component manufacturers will have to adjust their marketing strategies and production plans to match the changing laser and detector requirements of the new Ethernet market.

CIR's report, "Optical Components: The Next Wave," analyzes the current issues and market opportunities for optical component suppliers. Coverage includes the lasers, detectors, filters, amplifiers, modulators, splitters, OADMs, DCUs, and switches used in Ethernet, Fibre Channel, SONET/SDH, WDM, and PON networks. For more information, visit www.cir-inc.com.