Data Centers Are Driving the Entire Telecommunications Market – Lightwave

The overall market for optical transceivers sold into the 100G-and-above datacom market is expected to grow from $1.8 billion in 2017 to $4.6 billion in 2023, a six-year compound annual growth rate (CAGR) of 21%. Continuing build out of data center facilities by ICPs has produced this consistent double-digit growth. Some of the largest capacity is being deployed by the likes of Alibaba, Amazon, Apple, Baidu, Facebook, Google, Microsoft, and Tencent. ICP builds consist of both greenfield data centers and retrofits of the latest technology into operational ones. The current workhorse technologies being deployed at scale by ICPs are 100G CWDM4 and PSM4. These variants are also gaining interest at large enterprise data centers. Price erosion has been dramatic, opening up the market to a wider buying community and driving volume. Installations of 100G are projected to continue to increase in volume, with an 18% CAGR through 2023. The buying community is expected to shift as more enterprises move from lower speeds to 100G.

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Categories: Fiber, Market Trends, SCN

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