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According to the report of IHS“Optical Network Hardware Tracker”, it said that the year of 2015 is a year of harvest to many vendors in optical communication industry. Optical interconnection hardware market increased greatly in 2015, vendors like Fiberstore won large market share and expanded its territory. However, will the optical interconnection hardware market continue to thrive in 2016? In this article, prediction of 2016 optical interconnection market will be offered.
In 2015, driven by the never-ending needs for higher Ethernet speed, the sales of optical interconnection hardware grew rapidly. The advanced technology like Cloud, Internet of Things and virtual data center are pushing the advent of optical interconnection equipment. The wide deployment of FTTx and 4G network also play a vital role in driving optical interconnection market growth. In 2016, these applications of the advanced technology and deployment of fiber optic network will obviously still be biggest driver of the optical interconnection hardware market. The major feature of 2016 optical interconnection hardware market can be concluded in three words—compatibility, higher speed and high density.
Data center designers nowadays are hesitated to upgrade to 40/100G network due to the high cost. It is known that optical transceivers and DAC cables are indispensable for data center interconnection. These 40/100G optical devices are supposed to be compatible with their switches otherwise it might trigger an error. But the switch market has been monopolized by telecom giants like Cisco. These original 100G optical transceivers and DACs are usually three to four times more expensive than the devices of third-party vendors. For example, vendors like Fiberstore can provide full series of optical transceivers, which is very likely to promote the optical interconnection market, especially, for 40/100G products. QSFP-H40G-ACU7M and QSFP-H40G-CU1M are compatible Cisco 40G DAC cables offered by Fiberstore 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.
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).
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.
Higher speed, comparability and high density will be the hot words in 2016 telecommunication field. Additional, driven by the increasing need for higher Ethernet speed, 2016 optical interconnection hardware market is very likely to keep the increasing trends of 2015. But we can not deny the fact that the competition of interconnection market will be fiercer in 2016. Many vendors want a bigger piece of the interconnection hardware market. Fiberstore has made itself well-prepared to face the challenge and opportunities in 2016 by providing fully tested products and the most reasonable price of optical interconnection products.