Market for 40 Gbps Components and Modules to Reach $500 million by 2012
March 14, 2007
Glen Allen, Virginia: Telecommunications equipment manufacturers will purchase approximately $500 million (US) worth of 40 Gbps transponders and components by 2012, according to a new report from CIR, a market research and industry analysis firm based here. The report is the next in a series that examines market developments in optical networking modules and components. Additional information about the report is available here. Members of the press can request a summary from the firm.
Key Insights:
Having run the gamut from over hyped "next big thing" to dead and buried, 40 Gbps has once again emerged as a topic of conversation in the market. The difference today is that real deployments are beginning to happen and advances in technology and the availability of 40G transponders have made the technology into something worth considering. According to CIR's newest report, the market currently resides at the VSR (2 km) level with deployments mainly limited to core routers. While there have been announcements by some carriers including AT&T, Sprint and SOFTBANK of plans to upgrade backbone networks to 40 Gbps, CIR believes that industry wide 40 Gbps roll outs won't ramp up until 2010. Whether or not 40G achieves the market prominence of today's 10G remains to be seen but at a minimum that wont happen until at least 2015.
Nonetheless, 40G will find sizeable markets much earlier than that and CIR expects that the escalation in the 40 Gbps market will be driven by new technology enablers and cost improvements in addition to meeting bandwidth demands. The most important recent innovation has been the emergence of advanced optical modulation schemes and improved dispersion compensation, both of which make 40 Gbps transmission over existing networks a much more practical proposition. 40 Gbps also offers operational advantages inherent in the technology in that most network engineers believe that routers work at a much higher rate of efficiency if bit streams remain intact rather than carried as several lower-rate channels. And 40 Gbps SONET provides this capability in a way that say Ethernet cannot match.
So far, many of the large component and module manufacturers such as JDSU, Avanex, Finisar and Bookham have not entered the market but CIR expects that will change as volumes for 40 Gbps ports rise into the tens of thousands. Modules and components firms are extremely affordable and it would not take much to acquire some of the smaller firms out there. Firms like Apogee, CoreOptics, Inphi, Kailight, Picometrix or Teraxion could be absorbed in the next two to three years.
About the Report:
CIR's new report, "The Transition to 40Gbps" provides a thorough assessment and forecast of 40 Gbps technologies and market opportunities through 2012. The report examines the 40 Gbps value chain and projects how and where 40G will emerge. Technology areas covered include transponders and emerging MSAs, lasers and modulators, photo detection, dispersion compensation and amplification. Included are detailed forecasts of 40 Gbps ports, transponders and components for line cards as well as profiles of some of the leading manufacturers operating in this space. Firms mentioned in this report include Apogee, Avanex, Bookham, CoreOptics, CyOptics, Hitachi Cable, JDS Uniphase, Finisar, Fujitsu Component, Inphi, Kailight, NEC, NEL, Opnext, Oki, Picometrix, u2t Photonics and Yokogawa. The report is a must have for anyone working in or interested in the 40 Gbps space.
About CIR:
CIR provides detailed market analysis and forecasting of the trends, technologies and opportunities in the telecom and data communications components and modules market. Since it entered the market in 1979, CIR has produced dozens of reports that have tracked the cutting edge of the communications sector with a special focus on emerging technologies and high bandwidth networking. Our focus is on supplying our customers with the most comprehensive and detailed market data available in the sectors that we follow.
Contact:
Robert Nolan
CIR
804-360-2967
info@cir-inc.com
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