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Introduction

The overall market for optical transceivers sold into the 100G-and-above datacom market is expected to grow from $1.3bn in 2017 to $4.9bn in 2023, a six-year compound annual growth rate (CAGR) of 24%.

Highlights

  • ICPs are projected to move to 400G solutions soon. The components community is vigorously working on 400G developments, with early adoption expected in 2019. Volume growth is projected once price-per-bit parity is reached with 100G and ICPs' entire data center ecosystems are revamped for 400G-optics operation.
  • Ovum projects that between 2019 and 2023 the 400G-module market will grow at a CAGR of 221%.

Features and Benefits

  • Explains the OC datacom market drivers.
  • Assesses the needs of primary customers for datacom OCs.

Key questions answered

  • What are the drivers in the datacom market?
  • How will the datacom market grow in the next few years and what products will be needed?

Table of contents

Summary

  • In brief
  • Ovum view

Forecast summary

  • The global datacom transceiver market to exceed $5.2bn by 2023

Long-range market forecast drivers and barriers

  • The cloud market land grab
  • ICP capex has grown tremendously
  • The evolution to a network of data centers

Product group forecasts

  • AOCs' continuing versatility underpins a $700m market
  • Multi-mode optics shifting to SWDM and BiDi
  • Single-mode optics: CWDM4 is the focus

Market scenarios and warning signs

  • The long-term growth prospects of datacom products remain strong
  • Warning signs

Appendix

  • Methodology
  • Further reading
  • Author