400G
LightCounting: Optical Ethernet Transceiver sales will increase by 40% in 2024
LightCounting expected sales of Ethernet optical transceivers to decline by 5-10% in 2023, but surging demand from Google and Nvidia kept the market growing, albeit at single digits.
Sales of Optical Ethernet transceivers declined in 2019 as a result of lower spending by the Cloud companies, which now dominate demand for those parts. Cloud companies reduced their spending again in the end of 2022 and the market outlook was dire in early 2023. Yet, one year later the market has bounced back.
The market research firm has sharply increased their forecast for sales of 400G/800G transceivers and now expect: 40% growth in 2024, more than 20% in 2025 and double digit growth in 2026-2027, as illustrated in the figure below.
Source: LightCounting
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The growth will not continue indefinitely. Any slowdown in purchases of optics by Nvidia or Cloud companies can reverse the market dynamics. Timing of such a decline is unpredictable. All we know, it will happen at some point. Our model suggests a soft landing with single digit growth rates in 2028-2029, but it is more likely that we will see another sharp drop followed by a recovery, conforming to the rocky history of the past 15 years.
Fears of an economic recession have subsided, but they continue to weigh on spending of telecom operators, which see no revenue growth. Yet, we will not know for sure if a recession is coming until it actually starts and it will take another half a year after that for the economists to formally declare it. By that time, we will be busy discussing the timing of a recovery.
What remains certain is that optics are critical for data centers and for the rest of the global networking infrastructure. Recent progress in generative AI makes the future even more exciting. Keep this in mind, while navigating the markets volatility as shown in the above graph.
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About LightCounting:
The market research firm was established in 2004 with an objective of providing in-depth coverage of market and technologies for high speed optoelectronic interfaces employed in communications. By now, the company employs a team of industry experts and offers comprehensive coverage of optical communications supply chain.
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References:
https://www.lightcounting.com/report/march-2024-ethernet-optics-287
https://www.lightcounting.com/report/march-2024-quarterly-market-update-288
Highlights of LightCounting’s December 2023 Quarterly Market Update on Optical Networking
LightCounting: Sales of Optical Transceivers will decline in 2023
LightCounting: Optical components market to hit $20 billion by 2027+ Ethernet Switch ASIC Market Booms
Summit Communications selects Juniper Network’s PTX Series Routers for 400G Converged Optical Network in Bangladesh
Summit Communications, a leading end-to-end infrastructure service provider in Bangladesh has selected Juniper Network’s PTX Series Routers for 400G Converged Optical Routing solution upgrades to serve as the foundation of Summit’s core network. This will enable seamless network capacity expansion and efficient delivery of enhanced connectivity over hundreds of kilometers to various points of presence (PoPs) across the country.
Over the past decade, Bangladesh has undergone significant digitization and is now home to an emerging digital economy with over 66.94 million internet users. To accelerate this transformation further, the country’s Government has announced its vision of “Digital Bangladesh,” aimed at establishing a robust foundation for its digital economy. In support of this vision, Summit Communications has been instrumental in shaping the country’s networking landscape, notably constructing the largest fiber optic network infrastructure in the country.
With demand for mobile, internet and digital services continuing to soar, Summit Communications recognized the need to pioneer the adoption of innovative networking solutions to meet current and future connectivity demands. Building on a long-term relationship spanning over a decade, Summit partnered with Juniper for the next phase of their network transformation journey into 400G.
To enable a seamless transition to a Converged Optical Routing Architecture while improving its core network’s scalability, capacity and power efficiency, Summit Communications selected Juniper’s PTX10000 Series Packet Transport Routers. Equipped with 400G Coherent Optics, these routers will enable Summit’s network to achieve high-speed data transmission over long distances to its PoPs in Bangladesh while maintaining high reliability.
As Summit Communications progresses through its networking transformation journey with Juniper’s solutions, it will be in a strong position to meet its customers’ requirements, offering a superior end-user experience and top-tier performance in Bangladesh’s rapidly expanding digital economy.
Supporting Quotes:
“We have made tremendous progress over the years in delivering the high-quality networking infrastructure services to mobile operators and ISP customers in Bangladesh and are excited to strengthen our relationship with Juniper, particularly in integrating innovative 5G solutions. Their solutions will continue to play an integral role in our network, ensuring that we provide cutting-edge 5G connectivity and services for our customers guaranteeing fast, reliable, ultra-low latency services along with adaptation of network slicing and segment routing. Through our partnership, we look forward to supporting our country’s Digital Bangladesh vision.” – Arif Al Islam, Managing Director & Chief Executive Officer, Summit Communications Ltd.
“At Summit, one of our key goals is to lead the way in network innovation. Juniper’s 400G solutions will empower us to establish a more robust foundation, delivering the performance, scalability and operational efficiencies essential to our network. We are confident that a Juniper-powered network will enable us to continue providing best-in-class services that connect Bangladesh with the world, as well as contributing to the development of a digitally inclusive society in which everyone has access to cutting-edge services.” – Md. Farrukh Imtiaz, Chief Network Architect, Summit Communications Ltd.
“For years, Juniper has been a foundational presence in Bangladesh’s networking landscape through our partnership with Summit Communications, and we are honored to join them on the next phase of their network transformation journey. With our experience-first solutions, we remain committed to providing the technology needed to support their goals and meet the ever-evolving connectivity demands of businesses and consumers for years to come.” – Sajan Paul, Managing Director & Country Manager, India & SAARC, Juniper Networks
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About Juniper Networks:
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References:
Granite Telecommunications expands its service offerings with Juniper Networks
Verizon upgrades fiber optic core network using latest 400 Gbps per port optical technology from Juniper Networks
Synopsys and Juniper Networks form new company to pursue “open” silicon photonics platform
MTN Group and NEC XON deploy Africa’s first 400G optical transponder using TIP’s Phoenix
NEC Corporation and MTN Group have successfully deployed Africa’s first 400G optical transponder solution using “Phoenix.” This initiative marks a significant milestone for the telecommunications industry in Africa, with the potential to revolutionize the way optical networks are built and operated, thereby transforming internet delivery across the continent.
Phoenix is part of the Telecom Infra Project’s (TIP) Open Optical and Packet Transport (OOPT) project group, a collaborative effort involving multiple telecom operators and technology providers. Phoenix is a network device, known as a white box L0/L1 transponder, that can transmit data at speeds of up to 400 gigabits per second. The solution has met TIP’s rigorous test requirements, earning it a Controlled Environment Silver Badge, indicative of its readiness for deployment. Its disaggregated nature allows it to be programmed to run any vendor’s software, offering operators unprecedented flexibility in hardware and software selection. This disaggregation leads to cost reductions, accelerates innovation, and enables quicker and easier deployment of new network services.
Image Credit: Telecom Infra Project
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“We are thrilled to receive the Silver Badge recognition from TIP, acknowledging our commitment to promoting open and disaggregated solutions with the Phoenix optical transponder,” said Sou Satou, Senior Director of the Network Solutions Business Division at NEC Corporation. “Our dedication to TIP and the development of open products in the optical transport market remains a top priority for NEC,” she added.
The deployment of Phoenix is designed to accelerate internet connectivity and optimise network operations, thereby democratising access to information. It aims to make affordable internet more widely available across Africa, fulfilling a critical societal need.
Demonstrating its commitment to innovation, MTN has embraced this state-of-the-art technology, integrating it into its production network, specifically across its optical network between Johannesburg and Centurion in South Africa, further demonstrating the technology’s interoperability and backwards compatibility.
“The deployment of Phoenix with NEC Corporation is a significant step toward fulfilling a crucial promise to our customers, to deliver accessible, reliable, and fast internet,” said Amith Maharaj, Executive – Network Design and Planning. “This initiative is part of our ongoing efforts to embrace the latest technologies available that ultimately empower communities across Africa,” he added.
“Disaggregation is the future of networking, and we are proud to be at the forefront of this evolution,” said Anthony Laing, General Manager of Networking at NEC XON. “Through our partnership with MTN, we’ve established NEC XON as a trusted leader in disaggregated networking.”
By leading in the adoption of Phoenix, NEC Corporation and MTN Group are setting a precedent for telecom operators worldwide, offering a scalable and cost-efficient solution that meets the burgeoning demands of a digitally connected society.
This initiative marks a significant milestone for the telecommunications industry in Africa, the companies say, with the potential to revolutionize the way optical networks are built and operated. By leading this initiative, MTN believes it is ultimately helping customers with improved, cost-effective connectivity.
About MTN:
MTN is Africa’s largest mobile network operator, providing voice, data, fintech, digital, enterprise, wholesale and API services to more than 292 million customers in 19 markets.
About NEC XON:
NEC XON is a leading pan-African ICT-systems integrator, specializing in cutting-edge Communications, Enterprise and Retail, Infrastructure and Energy, and Safety and Security solutions. Operating in 54 African countries and with a strong presence in 16 of them, NEC XON has established regional headquarters in South, East, and West Africa.
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References:
https://telecominfraproject.com/oopt/
Bell and FirstLight: 3 new wavelength routes with triple redundancy and speeds up to 400G b/sec
China Mobile to deploy 400G QPSK by the end of 2023
Dell’Oro: Optical Transport market to hit $17B by 2027; Lumen Technologies 400G wavelength market
Heavy Reading: Coherent Optics for 400G transport and 100G metro edge
Cignal AI: NA Optical Network Spending to Accelerate; IEEE 802.3ct; NeoPhotonics 400G Multi-Rate Transceiver