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Report: Telecom, datacom market to reach $13.4B by '12

Posted: 07 May 2007 ?? ?Print Version ?Bookmark and Share

Keywords:Multi Source Agreement? datacom transmission module? Fibre Channel?

A new report from industry analyst firm CIR found that the market for telecommunication and datacom transmission modules will reach $13.4 billion by 2012.

According to the report, the factors that drive the transmission modules market include networks becoming increasingly fiberized with widespread deployment of 10GbE, traditional copper infrastructure being abandoned in the data center with Fibre Channel, parallel optics taking increased role and PON architecture bringing fiber to the home.

In the 10GbE sector, replacing XENPAK, X2 and XPAK with XFP (including XFP-E) and SFP+ presents numerous opportunities, especially since the boundaries between these two emerging Multi-Source Agreements have yet to be defined.

CIR believes that the market for SFP+ and XFP transceivers will reach $1 billion and 900 million respectively by 2012. Technological innovations are also creating new opportunities in the 10GbE sector. Electronic dispersion compensation has helped create an entirely new serial 10GbE standard called LRM, with a broad range of applications. 10GBASE-T capitalizes on new forms of copper cabling and signal processing to extend the reach of copper networks. 10GBASE-T alone should clock up $724 million in revenues in 2012.

In addition, Fibre Channel is very much in the ascendant with higher data rates (4Gbps and soon 8Gbps) at the start of their growth curve. There is also the possibility that Fibre Channel will break out from the SAN market and find applications in mainframe-to-mainframe interconnection and in grid computing. CIR expects that the total value for Fibre Channel modules in 2012 will amount to $747 million.

Wavelength division multiplexing (WDM) is being spurred by growing bandwidth demands to eliminate costly OEO conversions with more flexible bandwidth management in WDM equipment. In this sector, many of the opportunities have to do with tunability, a technique whose capabilities have yet to be fully explored. At the module level this translates into demand for more tunable modules and the ability to bring cost points down to where tunables can be used more widely in metro (and perhaps even in access) networks. WDM modules is projected to reach $2.2 billion by 2012, said CIR.




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