By 2018, the global analyst firm, Ovum forecasts that the total optical components (OC) market will expand at 8 per cent compound annual growth rate (CAGR) to a new high of US$10.5 billion and by 2013 it will grow 4 per cent. These statistics will be driven by increasing optics demand in the datacom and WAN segments.
In a new forecast Ovum identifies datacom as the fastest-growing segment, driven by demand for 10G, 40G and 100G components to support server, switch and storage connectivity.
Daryl Inniss, Practice Leader of Components at Ovum and Author of the Forecast, said, Demand to support data centers for cloud services is a large driver for datacom sales, and high-speed transceivers are needed to support this segment. Datacom is looking at a 16 per cent CAGR between 2012 and 2018.
He further added, Datacom has depended on component vendors delivering standards-compliant products, but equipment vendors are now developing their own components.
OC revenue growth is counterbalanced by equipment vendors manufacturing their own components. The 100G market is expected to behave similarly when it hits the mainstream.
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