Revenue from 10G, 40G and 100G optical transceivers sold to enterprise and data center markets rose 21 percent to $1.4 billion in 2014 – fueled by increased 40G QSFP (quad small form factor pluggable) spending.
40G transceivers are ramping up hard as data centers deploy 40GbE, particularly as a high-density 10G interface via breakout cables.
“40G QSFP demand growth over single-mode fiber is a result of large shipments to internet content providers Microsoft and Google,” said Andrew Schmitt, research director for carrier transport networking at IHS Infonetics.
The market for 100G data center optics is accelerating. 100G data center optics are yet to be picked up data center deployment in the way 40G QSFP optics have. This will change in 2016 as cheap 100G silicon reaches production and QSFP28 shipments surge as a result. Next year is going to be huge for 100GbE.
Data center transceivers account for 65 percent of the overall (telecom and datacom) 10G, 40G and 100G optical transceiver market.
Total 40G transceiver revenue grew 81 percent in the second half of 2014.
10G shipments in the data center continue to grow at healthy rates, but are being impacted by growth of 40G interfaces used as high-density 10G interfaces.
Revenue for client 10G modules was flat in 2014. IHS Infonetics said it expects the datacom optical transceiver market to grow to over $2.1 billion by 2019.