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CIR, a Charlottesville, Va.-based industry analyst firm, predicts that in the year 2011, the optical Ethernet components market will grow to $2.7 billion in revenues.
The company also reports that copper-based Ethernet transceivers will reach revenues of $4.7 billion in the same time period.
According to CIR's upcoming report, "Optical Components, The Next Wave," 2008 appears to be a breakout year for the 10GigE market due in part to the growth in 10 Gbps for high-end servers, many of which now are forced to use multiple 1-Gbps links.
CIR said that with prices falling for 10-Gig lasers and the arrival of low-cost standardized copper-based 10-Gbps connections, 10GigE is rapidly becoming an economically viable option for both server and inter-switch links in data centers and corporate networks.
Gigabit Ethernet is now the Ethernet-of-choice for almost every business-class computer, CIR reports, which in turn will force the issue of 10GigE deployments even further. As these transitions occur, component manufacturers will have to adjust their marketing strategies and production plans to match the changing laser and detector requirements of the new Ethernet market.
CIR's report, which analyzes the current issues and market opportunities for optical component suppliers, is due out next week. Areas of coverage include lasers, detectors, filters, amplifiers, modulators, splitters, OADMs, DCUs, and switches used in Ethernet, Fibre Channel, SONET/SDH, WDM and PON networks.
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