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CIR Sees Worldwide 10 Gbps Market Surpassing $3.2 Billion (USD) in 2008

Posted on: Thursday, 20 November 2003, 06:00 CST

CHARLOTTESVILLE, Va., Nov. 20 /PRNewswire/ -- According to CIR, a leading industry analyst firm based here, the global market for 10 Gbps systems will achieve an estimated market of $3.2 billion (US) in sales in the year 2008. After 3 years of poor industry performance, CIR sees the market staging a modest recovery in 2004 and enjoying stronger growth starting in 2005.

Where the Growth Is

Although the bulk of 10 Gbps deployments will still be in the long haul throughout the period, CIR researchers believe that the growth will come from the metro and especially the access and enterprise segments. Key drivers for the deployment of 10 Gbps closer to the customers include the following:

* The bandwidth hungry protocols ESCON, Fibre Channel and Gigabit Ethernet,

which are becoming more widely deployed and are supported over metro or

regional areas rather than nationally or internationally.

* Broadband networks have reached the point that they now require 10 Gbps

aggregation. (In all segments of the public network, the 10 Gbps market

is also being driven by the significant investment in backhaul

facilities for mobile voice and data services.)

* There are already several million PCs and servers (mostly the latter)

equipped with GigE. This will push the market forward for 10 Gbps

connectivity in both the wiring closet and in backbone applications.

CIR's data suggests that while OC-192 SONET/SDH transport will remain the largest spending category over the forecast period starting in 2004, technologies such as Wave Division Multiplexing (WDM), 10 Gbps Ethernet and 10 Gbps ATM will achieve more significant growth rates. The transition to 10 Gbps Ethernet and 10 Gbps ATM is the natural evolutionary path to take for networks that have traditionally relied on Ethernet and/or ATM. For example, for corporate networks that have typically built their networks using Ethernet, 10 Gbps Ethernet offers seamless integration at the PHY level.

And CIR is also seeing a resurgence of interest in WDM but this time within the corporate network/SAN segments, where WDM is becoming a mainstream solution for large end users. WDM is also continuing to be deployed at a healthy rate in submarine systems and further sustaining the DWDM market is Europe, which, CIR claims, has not cut spending on DWDM transport elements to the extent that U.S. carriers have.

The report titled, THE MARKET AT 10 GBPS: A VALUE CHAIN ANALYSIS provides a thorough analysis of the entire 10-Gbps value chain. It begins with a discussion of the applications that will drive 10-Gbps deployment both today and in the near future and then continues with a comparison of the various 10- Gbps technologies and how they are suited to these applications. There is also an account of how 10-Gbps technology is being shaped and is shaping WDM deployment in U.S. and overseas networks. Throughout the report we discuss the activities of leading equipment and component/subsystems manufacturers active in the 10-Gbps space.

THE MARKET AT 10 GBPS offers a complete five-year forecast of the 10-Gbps value chain, beginning with systems and down through to the associated optical and electronic modules and components. Technologies covered within the report include SONET/SDH, WDM, Ethernet, ATM, Packet Over SONET (POS) and Fibre Channel. All forecasts are broken out by shipments, and revenues as well as by technology and network segment, as well as geography, reach and MSA where appropriate. The data in this report is based on CIR's ongoing program of interviews with service providers, equipment vendors and components/subsystems manufacturers and its 25 years of experience providing information to the telecom industry. Additional details can be found on the CIR web site at http://www.cir-inc.com/.

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