Globally, 10G, 40G, and 100G transceiver revenues are expected to grow 10 percent to $2.1 billion in 2014, said Infonetics Research.
The growth in 2014 will be low compared with 2013. In 2013, the annual revenue growth in the 10G, 40G and 100G transceiver market was 18 percent.
The market size of 10G, 40G, and 100G transceiver was $1.9 billion in 2013 due to demand for 100G WDM and 40G QSFP+.
During the first half of 2014, 10G, 40G and 100G transceiver revenue grew 11 percent from the year ago period.
Alcatel-Lucent, Ciena, Cisco, Huawei, and Infinera are controlling the market for 100G coherent equipment.
“Major growth in the data center for 100GbE is on the horizon due to new silicon entering the market and lower-cost QSFP28 optics, including SR4 and much cheaper 2km LR4 optics,” said Andrew Schmitt, principal analyst for carrier transport networking at Infonetics Research.
The telecom research report said interest in the 25GbE is building momentum for a jump in these formats. Infonetics expects volumes in the metro 100G market to increase in a year. The main growth drivers will be data center and internet content providers.
Infonetics forecasts that the coherent WDM market will double in 2014.
Big growth in 40G data center interfaces is impacting 10G volumes, as QSFP+-based interfaces used for high-density 10G start encroaching; growth in the 10G datacom segment is expected to slow beginning this year. Interest in 100G data center optics is accelerating, the report said.
Shipments of 40GbE QSFP optics in 1H14 were lower than anticipated due to softer demand from internet content providers, whose needs remain erratic due to a lack of effective forecasting, irregular demand trends, and unpredictable order patterns.
