LightTrends

 

Optical interconnects ready for blast-off; revenues will near $800 million by 2021

 

 

LightCounting releases combined edition of refreshed Active Optical Cable and Embedded Optical Modules reports

 

 

Optical interconnects have long served as data bridges between elements of large systems or clusters, and they’ve taken many forms. Since 2000, embedded optical modules (EOMs) have supported supercomputers, core routers, and an array of other interesting and unique applications. Active optical cables (AOCs) arrived in 2007 as a practical, low-cost alternative to regular pluggable modules, and found a home primarily in high-performance computing (HPC) clusters. The market for AOCs and EOMs has really been a collection of niches, which has made it lumpy and large-order sensitive. For example, combined market revenues fell 17% in 2013, and then recovered by the same percentage in 2014. With such a lumpy and variable past, what does the future hold?

LightCounting thinks the future for both AOCs and EOMs is bright, with the next two years marking a real departure from the past. We predict that the combined market will grow 48% to $262 million in 2015 and will go on to approach $850 by 2021. What is driving this change?

The general HPC market slump appears to be over, but the days of a single DARPA-supported IBM Blue Gene supercomputer needing 250,000 EOMs are over, and growth rates for the HPC segment going forward will be modest.

We are seeing some brand new opportunities, however, especially for EOMs. After being ‘the next big thing’ for some years, datacenter applications have finally arrived. Both AOCs and EOMs are included in the plans of some of the largest cloud-scale players. These customers buy large quantities and by the end of our forecast, will dominate unit shipments, admittedly at very competitive prices.

Just as pluggable optical modules are moving on from 10Gbps per lane to 25Gbps, so too are AOCs and EOMs. In fact, 25G EOMs are beating their AOC counterparts to revenue. 25G products will quickly become the core of the market. By 2019-2021, optical backplanes will become important and a new exascale supercomputer will be built, likely with 50Gbps optical technology.

Figure 1:


For makers of AOCs and EOMs, these markets are a complex mix of product configurations and applications. LightCounting’s newly-combined AOC-EOM Report and Forecast sorts it all out and explains what’s happening and why. Seventeen categories of products are individually tracked, forecasted and mapped into five application segments: HPC, core routing, data center, optical backplanes and other applications.

For more information on the report, please go to http://www.LightCounting.com/AOC.cfm

Recently published reports:

  1. High-speed Datacenter Interconnects, June 2015
  2. Next-Generation FTTX Optics, July 2015
  3. Optical Communications Market Forecast, August 2015
  4. Quarterly Market Update Report, September 2015
  5. Mobile Fronthaul Optics Report & Forecast, November 2015
  6. Quarterly Market Update Report, December 2015
  7. Active Optical Cables and Embedded Optical Modulest, December 2015

Coming soon:

  1. Market Opportunity for Optical Integration Technologies, including Silicon Photonics January 2016




ABOUT LIGHTCOUNTING MARKET RESEARCH
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.