Market Trends for Optical Interconnection Hardware in 2016

Market Trends for Optical Interconnection Hardware in 2016

Posted on by FS.COM

2016 optical interconnection  hardware market trend

According to a report named “Optical Network Hardware Tracker” provided by IHS, a research company, the year of 2015 is a year of harvest to many vendors in optical communication industry. Driven by the whole industry, optical interconnection hardware market increased in 2015, although it has the most fierce competition. However, will this tendency be kept in 2016 for optical interconnection hardware market? Insight of 2016 optical interconnection market will be offered in this article.

Where There Is Need There Is Market

In the past year, the growth of optical interconnection is largely driven by the increasing needs for higher Ethernet speed. Behind these needs are the widespread of advanced technologies and applications like Cloud, Internet of Things and virtual data center. The wide deployment of FTTx and 4G network are also great drivers of optical interconnection market increasing. In 2016, the applications of the advanced technology and deployment of fiber optic network will obviously still be biggest driver of the optical interconnection hardware market. The main characteristics of 2016 optical interconnection hardware market can be concluded by the three keywords: high speed, compatible and high density.

High Speed

It has been clearly proved in the past years that only higher speed Ethernet like 40G or 100G can keep up with the growing needs. Some large data centers have already switched to 40G and 100G in the past years, although it has not yet been widely applied. However, according to research by IHS, 40G and 100G will be the key growth segment of the market in the coming years, and 2016 might be the breakout year of 100G technologies. The following picture shows the prediction of global revenue from 2015 to 2019. The 100G market is supposed to grow 262 percent from 2015 to 2019. For optical interconnection hardware market, sales of 100G hardware market will also increase largely. Fiberstore as one of the leading providers in optical communication has already launched 100G interconnection products, like 100G transceivers and DAC (direct attach cable).

IHS network market report

Compatible

Many data centers slow down 40/100G migration plan because of the cost. For example, almost every data center needs optical transceivers and DAC for interconnection. And these products must be compatible from the switches. However, the switch market has already been monopolized by large vendors like Cisco. And the original brand 100G optical transceivers and DACs are usually very expensive. Luckily, vendors like Fiberstore can provide full series optical transceivers with a lifetime warranty, fully compatible with networking kit. What’s more these products are much cheaper than the original brand ones and have the same performance. These third party transceivers offer customers more choices with lower prices, which is very likely to promote the optical interconnection market, especially, for 100G products.

High Density

Even price for high data rate products will decrease in 2016, there are still various problems to be solved for optical interconnection. Higher Ethernet speed depends means more cables and devices, which becomes an urgent problem in data center where the space is limited. Enlarging the size of data center is a method. However, there is an economical method for many data centers in interconnection, which is increasing the cabling density and port density. Vendors satisfy the market needs by providing small form factor optics, high density network rack system and MPO products. In 2016, Fiberstore innovatively provides high density LC and MPO patch cords with push-pull tabs which can increase the cabling density and flexibility effectively. High density is the irreversible trend for both data center and optical interconnection hardware market.

Where There Is Market There Is Competition

Three most obvious trends of optical interconnection hardware market will be high speed, compatible and high density. Meanwhile, promoted by the increasing need for higher Ethernet speed, 2016 optical interconnection hardware market is very likely to keep the tendency of 2015. However, except opportunities, the competition in optical interconnection market will be fiercer. More vendors want to share the big cake of optical interconnect hardware market. By providing fully tested products and the most reasonable price of optical interconnection products, Fiberstore is ready and willing to face the challenges and opportunities in 2016.

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