10G networking spending to grow 70%, 100G to surge 262%

chart on 10G and 100G market growth
The global 10G networking port spending to grow 70 percent, while 100G will increase 262 percent from 2015 to 2019, said IHS.

IHS Infonetics Networking Ports: 1G, 2.5G, 10G, 40G, 100G report analyzes the spending on 1G, 2.5G, 10G, 40G and 100G optical and Ethernet ports.

Both enterprises and telecom service providers invested for deploying 1G and higher networking ports to enhance capacity of their networks to meet the demands. 40G and 100G are the key growth segments of the market. 2.5G revenue had the highest growth in 2014 due to increases in GPON OLT spending in China and the rollout of Gigabit services in North America.

Matthias Machowinski, research director for enterprise networks and video at HIS, said: “We expect 40G revenue to start falling as early as 2017, as enterprise and data center demand shifts to the newly-released QSFP-based 100G technology.”

“2016 is poised to be a breakout year for 100G technologies as coherent 100G ports ramp in metro networks, and companies such as Google, Microsoft and Amazon introduce 100G Ethernet switching technology into their massive hyperscale data centers,” said Andrew Schmitt, research director for carrier transport networking at IHS.

1G/2.5G/10G/40G/100G port shipments are expected to exceed 700 million in 2015, totaling $45 billion.
100G port shipments more than doubled in 2014 from the prior year, reaching 163,000.

IHS forecasts worldwide 100G port revenue to grow at a 137 percent compound annual growth rate (CAGR) from 2014 to 2019.

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