Global 40G and 100G market to reach $5.9 billion by 2017


Driven
by increasing global demand for faster transmission speeds in computer
networking, triggered by proliferation of bandwidth heavy multimedia content
and increased adoption of advanced networking technologies such as data
warehousing, cloud computing, and server virtualization, the world market for
40 and 100 Gigabit Ethernet (GbE) is projected to reach about $5.9 billion by
2017.


Rapid
adoption among both data centers & enterprise networks and commercial
network operators augurs well for the future of this market, according to Global Industry Analysts.


The
last couple of decades have witnessed a broad sweep of technological
developments in computer networking. Computer networking speeds are
accelerating significantly beyond the standard 10-Gigabit Ethernet (GbE).


From
data transmission speeds of 100 megabits per second to 10 gigabits per second
to now over 100 gigabits per second, networking speeds have been evolving in
sync with growing business needs.


The
massive data explosion triggered by bandwidth heavy multimedia content, such
as, video, voice, multimedia, has and will continue to throw the focus on data
transfer rate capability of computer networks.


The
continuously growing number of users sharing a network, use of advanced
applications (i.e. internet-based applications, video communication), faster
desktop PCs, and faster network servers, all of which contribute to traffic
congestion, are creating a dire need for networks to support gigabit
transmission speeds.


This
insatiable need for faster transmission speeds is forecast to continue
gathering momentum as businesses adopt bleeding edge networking technologies,
such as data warehousing, cloud computing, server virtualization, all of which
have immense resource demands i.e. higher storage needs, and bandwidth-hogging
applications.


The
scenario throws the spotlight on new generation of high-speed computer network
standards, such as 40-gigabit Ethernet (GbE), and 100-gigabit Ethernet (GbE).


Strapped
with the ability to deliver Ethernet frames at 40 and 100 gigabits per second
across multiple Gb/s lanes, the 40 and 100GbE networking standards represent
the future of high-speed networking.


Growth
in demand in the coming years will be driven by numerous advantages offered by
deploying faster 40-gigabit and 100-gigabit networks, with the prime reason
being economics of cost and savings offered by higher network efficiency
levels.


Reduced
power consumption that comes with higher transmission speeds also represents a
major advantage. All of these factors will drive adoption of and upgradation to
40G and 100G networks and spell opportunities downstream for 40-gigabit
Ethernet and 100-gigabit Ethernet products/modules, such as, 40 and 100GbE
optical transceivers and transponders.


Ethernet
will continue to play an ever-important role in handling rising data traffic on
the Internet, and technology developments will continue to drive Ethernet
speed/technology. The road map has been laid out and signposts and milestones
set out for 40 and 100 Gigabit Ethernet (GbE) market.


The
market has huge potential in view of current data/traffic saddled networks and
with 10GbE becoming increasingly insufficient. With the ink barely dry on the newest
40GbE and 100GbE technology standard, potential evolution of 400GbE and
1TerabitE, the next rate of Ethernet speed, is already creating a flutter.


A
majority of the existing data centers currently employ 10 Gigabit/second
Ethernet over balanced twisted-pair copper cabling and optical fiber in their
backbone infrastructure. Widespread adoption of 10G Ethernet is major factor
for paving way for next-generation Ethernet.


Greater
penetration of 10G Ethernet in edge devices would result in advancement of 40G
Ethernet in network core devices. Major online companies such as Amazon and
Google have already indicated their desire to use 40GbE and 100GbE in their
core networks.


While
10G and 40G implementations have been underway over the last couple of years,
and the technology has achieved reasonable levels of market penetration, the
100G technology is still in the embryonic incubation phase.


Although
the initial ratification of the 100GbE is complete, efforts are still ongoing
to expand the 100GbE standard. 40GbE in contrast is already being adopted by
data centers at equipment points, such as, servers, and the same for 100GbE
speeds at the server level is forecast to occur in the next five to six years.
Network backbone, campus and metro links are forecast to be early adopters of
100GbE.


Until
the 100G market establishes its position, 40G is expected to continue growing
and enjoy robust opportunities. Currently, a direct migration to 100GbE is
beset with disadvantages, such as, higher costs for end-users, and
incompatibility issues with existing transport infrastructures.


One
advantage that 100G technology is expected to have over 40G is in terms of
leveraging the technological developments of 40G, thereby redeeming the current
disadvantages/pitfalls of the 40G technology.


As
stated by the new market research report on 40 and 100 Gigabit Ethernet (GbE),
US remains the largest regional market worldwide. Asia-Pacific represents the
fastest growing regional market with revenue from the region projected to wax
at a CAGR of about 80% over the analysis period!


By
Telecomlead.com Team
[email protected]