CIR: Datacom transceiver market to grow 50% by 2014

JULY 22, 2009 -- According to a new report from CIR (search Lightwave for CIR), the market for data communications transceivers will grow from $4.2 billion in 2009 to $6.5 billion in 2014.

Highlights of the report include:

• Processor speeds have now caught up with the networking power of 10-Gigabit Ethernet (10GbE), and as a result 10GbE will rapidly become a standard requirement on servers. In addition, within a few years the market will see the first 10GbE-equipped desktop PCs. CIR projects that the 10GbE market will reach $1.4 billion by 2014.
  
• The IEEE's SR standard will remain dominant for most 10GbE deployments since it is well suited to most data center environments. Similarly, CIR expects the LX4 standard to continue widespread use in legacy vertical riser applications for some time since it is often too expensive to pull in new cabling or redesign equipment for the competing LRM standard. So far the copper "T" standard for 10GbE has failed to take off because of its huge power consumption. However, "T" will eventually be used for early adopters of 10GbE-equipped desktop PCs.
  
• The new regulatory environment for businesses and industry will increase the prospects for storage area networks. As a result, CIR expects the Fibre Channel transceiver market to exceed $1.7 billion by 2014, by which time more than 65 percent of the value of shipments will be accounted for by the new 16-Gbps Fibre Channel standard.
  

CIR's new report, Data Communications Transceiver Markets: 2009-2013, provides forecasts of transceivers for Ethernet, Fibre Channel, and parallel optics at "all data rates," according to the company. The report also includes completely revised forecasts in both volume and value terms of every MSA/IEEE combinations in 10GbE. In addition, the new CIR study reports on the latest enabling technologies, MSA developments, and key networking drivers for next-generation enterprise networks.

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