New CIR Report Says 400G Transport Market will Reach $528 Million by 2019

Charlottesville, VA:  Industry analyst firm CIR has announced the release of a new report titled, “400G, OTN and Next-Generation Transport: A Market and Technology Forecast.” The report identifies equipment and component opportunities presented by the deployment of 400G transport in public networks.  It also profiles the approximately 25 400G trials underway worldwide.  This report also contains eight-year revenue and port forecasts for the 400G transport market with projections for both the equipment and components.

About the report:

The equipment covered in this forecast comprises OTN/WDM boxes, optical packet platforms and core routers. Deployments in metro/regional and long-haul/submarine networks are both included.  In CIR’s analysis of 400G transport components it focuses on the growing roles of DSP, proprietary network processors, optical integration and WDM superchannels.

Finally, this report provides strategic profiles of major players in 400G transport space including Alcatel-Lucent, BT, Ciena, Cisco, Comcast, Coriant, Cyan, DANTE, Deutsche Telekom, Ericsson, EXATEL, France Telecom, Fujitsu, GlobalConnect, Huawei, Infinera, Jazztel, Juniper, KPN, Mobily, NEC, Netia, Nextgen, NTT, SaskTel, Shaw Communications, Sprint, Telefonica Chile, Telefonica Espana, Telekom Austria, TE SubCom, True, TeliaSonera, Verizon, Xtera, Zain, Zayo and ZTE.

For more details of the report see:

CIR’s next two market reports will analyze active optical cable (AOC) markets.

From the report:

Equipment sales for 400G transport networks are expected to reach $528 million by 2019, while total consumption of optical and silicon components for this market is expected to reach almost $195 million by 2019.

Meanwhile, traffic patterns are changing in way that is radically reshaping opportunities in transport networks.  By 2019, CIR expects metropolitan/regional networks to be buying around $240 million in transport network equipment, only slightly less than that bought for long-haul pipes.  In addition, 400G transport bandwidth will be “intelligent.” Thus CIR expects 400G transport networks to be designed around Software Defined Network (SDNs) concepts that speed up provisioning time for high data rate services.

Mobile broadband sources do not require much bandwidth individually, but collectively they can easily clog up fat backbones.  This situation will only get worse as data from the Internet-of-Things hits the transport network. Mobile broadband traffic is also highly unpredictable. As a result, 400G transport pipes will have to adapt bandwidth to rapidly changing conditions.

CIR believes that this need for intelligent 400G transport network will create growing opportunities for network processors and DSP chips.  By 2019 shipments of network silicon of this kind will be worth around $47 million, growing to $95 million by 2021.  These chipsets will effectively deal with analog/digital conversion, chromatic dispersion, PMD compensation, spectral efficiency, advanced modulation and non-linearities.  However, many of the critical chips will be built in house by the equipment vendors.

Finally, CIR notes that the move to 400G transport will inevitably lead to the need for many more optical components.  As a result, CIR believes that all the major platform vendors are going to make optical integration an increasing part of their product design strategy.

For now, the opportunity for integration in the 400G space is all about putting as many functions on an optical chip as possible.  These functionalities could include muxes, lasers, modulators, detectors, VOAs, and various control elements. Going forward, new functionalities are going to be integrated into such chips: amplification (SOA) and tunability, for example.

About CIR:

Communications Industry Researchers has been publishing hype-free industry analysis for the high-speed optical networking industry for more than 20 years. Visit for a full listing of CIR’s reports and other services.

About ilumatech:

Providing strategic and tactical sales, marketing, and management consulting services for analyst firms, consultancies and other professional service firms or individuals looking to expand their business or better monetize their markets knowledge. Leveraging the founder’s twenty plus years of experience in marketing, selling and managing technology focused market research and analytical content and consulting services, ilumatech offers a range of services for clients to achieve greater levels of success in their firms or out on their own.

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