SOURCE: LightCounting, LLC

LightCounting, LLC

January 24, 2011 07:00 ET

Market for Optical Transceivers Increased by 30% Last Year, Entering 2011 With a Good Momentum

EUGENE, OR--(Marketwire - January 24, 2011) - Global sales of optical interface modules used in telecom and datacom networks exceeded $2.5 billion in 2010, increasing by 30% from the year before. The growth was driven by sales of 10 Gbps SFP+ and DWDM modules, including 40 Gbps and even 100 Gbps products. Sales of WSS modules used in ROADMs and tunable lasers were also strong in 2010, growing at 34% and 14%, respectively.

Recovery in the datacom market started in the second half of 2009, with sales of Ethernet and Fiber Channel transceivers increasing rapidly, at 10-30% per quarter. Growth in sales of these products slowed in Q2 2010, but gained momentum again in the second half of the year. Sales of new products such as 10 GigE and 8 Gbps transceivers increased by almost 60% in 2010, with short reach SFP+ modules accounting for most of this growth.

The growth in sales of SONET/SDH and DWDM modules was more modest in the early stages of the recovery, but it gained strength in the second half of 2010. The DWDM market segment posted close to 40% growth for the year, driven by rapidly increasing sales of fixed wavelength and tunable 10 Gbps XFP transceivers and 40 Gbps DPSK and DQPSK modules. Sales of SONET/SDH transceivers increased by almost 30% in 2010, mostly due to growth in sales of short reach OC-768 modules, which jumped by a staggering 160%, and suppliers can barely keep up with the strong demand.

"2010 was an incredibly good year for the optical transceiver market," commented Vladimir Kozlov, founder and CEO of LightCounting. "We expect that the market growth will continue in 2011, but it will be more moderate at least in the Enterprise and Storage networking market segments. Market for telecom networking equipment as well as modules and components used in telecom systems is likely to lead the growth this year."

Detailed analysis of the optical communications market, based on confidential sales data provided by 23 leading vendors, is presented in a new LightCounting Market Update report released on January 24, 2011: (

About LightCounting
LightCounting is a market research company focused on in-depth study of the optical communications market. Our research covers the whole supply chain including components, modules, systems, and their applications. Most of our analysis is based on confidential sales data provided exclusively to LightCounting by leading component and module suppliers.

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