LightTrends

 

100GbE Drives OC Vendor Revenues to Another Record in Q3 2016

 

LightCounting releases its Quarterly Market Update Report

 

Combined sales of the top 15 suppliers of optical component and modules exceeded $1.6 billion in Q3 2016, setting a new record and extending the growth streak to seven consecutive quarters. Quarterly sales were up 8% from Q2 2016 and 30% from Q3 2015.

Demand for 100GbE optics continues to exceed expectations and it was the main driver for market growth in Q3 2016. Sales of 100G DWDM components and modules were also strong, but demand in this market segment started showing signs of stabilization. The figure below shows that shipments of 100G and 200G DWDM ports by equipment suppliers were almost flat in Q3 2016, after a sharp ramp in the previous three quarters. LightCounting projects that these shipments will remain steady in Q4 2016 and the growth will resume next year, albeit at a more modest rate.


Source: LightCounting

Sales of 100GbE transceivers, including modules used as client side interfaces on DWDM transport systems, continued to increase in Q3 2016. A larger fraction of 100G DWDM line cards shipped in Q3 2016 were equipped with 100GbE client ports instead of 10GbE, and this trend is likely to continue.

The highlight of Q3 2016 was the first high-volume shipments of 100GbE optics for mega datacenters. Applied Optoelectronics and Innolight reported 27% and 42% sequential increases in sales, respectively. Strong sales of QSFP28 transceivers also helped to lift Finisar’s quarterly revenues to a new record. All these companies offered strong guidance for the last quarter of 2016.

Detailed analysis of 100GbE transceiver shipments in 2016 is presented in LightCounting’s Quarterly sales database, released along with the Market Update Report. The database includes historical data on quarterly shipments and pricing of more than 100 products in 2015-2016. More than 20 leading optical transceiver suppliers contributed data to this report.

The report also presents an analysis of revenue and spending trends of top-tier telecom and Internet service providers, and the financial results of telecom and datacom equipment vendors, including the market shares of the leading suppliers of 100G DWDM transport equipment.

LightCounting will discuss the new report at a webinar for clients scheduled at 1:30 pm EST on December 21st. Detailed information on the report is available at:
http://www.lightcounting.com/marketupdate.cfm

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LightCounting is a leading optical communications market research company, offering semiannual market updates, forecasts, and state-of-the-industry reports based on its analysis of primary research with dozens of leading module, component, and system vendors as well as service providers and other users. LightCounting is the optical communications market’s first choice source for the accurate, detailed, and relevant information necessary for doing business in today’s highly competitive environment. For more information, visit: www.LightCounting.com or follow us on Twitter at @LightCounting.