Optical Transceiver Market To Rise Dramatically In 2013

Optical Transceiver Market to Rise Dramatically in 2013

8 January 2013

The optical transceiver market is expected to register double-digit growth to $2 billion in 2013 on the back of rising 100G deployments, according to preliminary data from Infonetics Research.

Once the company collates its final 2012 data, it expects the market to show a 7% rise in annual terms for last year and a growing number of carriers are deploying 100G transceivers in their core networks.

Prototyping, sampling and trials have been on the rise globally, including China, where 100G plans have been scaled up by 12 months since the spring of 2011, said Andrew Schmitt, principal analyst for optical at Infonetics. Global shipments of 100G coherent transceivers soared more than threefold in 2012, in line with the research firm's estimates. 100G shipments are set to increase by at least 100% in 2013, the analyst added.

Unit sales of 10G, 40G and 100G transceivers continue to increase. However, the current shift toward 100G and price cuts put pressure on 10G and 40G transceiver revenues, Infonetics said in its market report.

By 2015, the combined 40G and 100G transceiver revenues will for the first time match those for 10G transceivers, the company predicts. At the same time network equipment manufacturers will provide over 75% of all 100G long reach ports by 2014-2015, Infonetics estimates.

Last year, 100G supply was steady in the US and Europe as carriers planned trials or moved to large-scale deployments. In the United States, CenturyLink and Verizon separately announced intentions to deploy 100G in their networks in 2013, with rivals XO and Zayo also unveiling plans to integrate 100G into several key US markets.

Europe saw equally aggressive 100G deployments. Joining BT, TeliaSonera International Carrier outfitted both its European and US networks with 100G equipment from Nokia Siemens Networks.