Connections +
News

Ovum-RHK forecasts healthy growth for optical components market

Research firm Ovum-RHK expects global datacom optical components (OC) sales to grow at an 11% compounded annual gro...


April 11, 2006  


Print this page

Research firm Ovum-RHK expects global datacom optical components (OC) sales to grow at an 11% compounded annual growth rate from US$728 million in 2005 to US$1.34 billion in 2011.

Ethernet transceivers will lead the market growth with the LAN market transitioning from 1 to 10 Gbps and Fiber Channel transceivers in the storage market transitioning to 4 Gbps and then 8 Gbps.

While 10 GigE switch ports are shipping today, real deployments of the most attractive opportunity over the long run-covering 300 meters on legacy multimode fiber will not begin until 2008.

This sub segment will continue to grow substantially even after 2011. Volume shipments of fiber channel transceivers at 8 Gbps will not begin until 2009.

Notwithstanding these opportunities, component vendors are challenged with providing a cost-effective solution that meets the market demand, the study concludes.

“While the market demand for higher data-rate transceivers presents excellent revenue opportunities for component suppliers,” said Dr. Daryl Inniss, vice president of optical components at Ovum-RHK, “I am worried that the challenging cost requirements create unhealthy financial positions for suppliers.

“Furthermore, the market needs to define a form factor that gives vendors the opportunity to recoup the research and development invested to produce the high data-rate transceivers.”