SEPTEMBER 9, 2008 -- The optical transceiver market is undergoing a significant transformation in 2008, with several important trends that were gradually setting pace in 2004-2007 now rapidly reshaping the industry, reports the latest Transceiver Market Forecast from LightCounting (search for LightCounting), a transceiver research company.
Technologically, Ethernet and DWDM will drive the market from 2008 to 2011, says Lightcounting. Low-cost 10-Gigabit Ethernet (10GbE) SFP+ modules will dominate data communications, as evidenced by their stellar first year, with sales already eclipsing all other 10GbE form factors, according to the company.
LightCounting also asserts that, despite the European market slowdown, FTTx will become increasingly significant as GPON and next-generation PON gain prominence through 2011. Meanwhile, rapidly increasing bandwidth demands will fuel migration to higher data rates with early adopter global carriers like Verizon Communications committed to transitioning to 40 and 100 Gbits/sec by 2010.
"We certainly want 100 Gbits/sec as soon as possible and we're pushing the industry in that direction," Glenn Wellbrock, Verizon's director of backbone network design, told LightCounting. Verizon also wants 100-Gbit/sec transponders to ensure supply from several sources and to help drive down costs, the research firm reports.
"The leading transceiver players are in acquisition mode to increase their scale, profit margins, and vertical integration opportunities, as well as to enhance their systems know-how," says Dr. Roy Rubenstein, director of research, LightCounting. "They are meeting head-on the dual challenge of emerging, more demanding opportunities like 100 Gbits/sec and the continual cost efficiencies demanded by operators and equipment vendors."
The report presents historical data from 2005 and a detailed market forecast through 2011 for SONET/SDH, Ethernet, Fibre Channel, CWDM, DWDM, FTTx transceivers, and optical interconnects, sorted into more than 100 product categories.
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