Infonetics: 10G market to hit $9.5 billion in 2008

Thu, 10/23/2008 - 8:05am
Traci Patterson

The 10 Gigabit (10G) market is increasing, and it’s on target to hit nearly $9.5 billion worldwide in 2008, according to a new report from Infonetics Research.

The report, “10G/40G/100G Market Size and Forecasts,” tracks 10G, 40G and 100G optical (OC192/STM64, etc.), as well as Ethernet ports and revenue, on various types of service provider and enterprise gear. According to the report, despite the economic downturn, the 10G market is thriving and will continue to thrive for many years to come.

Infonetics’ report also found that 40G is ramping rapidly, and that 100G should begin soon and could take off by 2013.

“A majority of service providers we've spoken to are expecting to invest in 40G until the 100G market is up and running; some providers are hoping to skip the 40G phase altogether, but we don't see that being a viable option, as growing traffic demands are outstripping current capacities and 100G won't reach reasonable price points until about 2012 or 2013,” said principal analyst and co-founder of Infonetics, Michael Howard. “When 100G Ethernet arrives, it’ll be the next big thing and the most important, because it will last to at least 2025, solving traffic problems for a very long time.”

10G/40G/100G/ Worldwide Revenue
Worldwide Revenue

Co-author of the report, Matthias Machowinski, directing analyst for enterprise voice and data at Infonetics Research, said: “As corporate applications get more and more bandwidth intensive and enterprises centralize their resources, a tremendous strain is being put on their networks. In our latest user study, increasing network capacity was named by network managers as their number one initiative; it’s no surprise then that shipments of 10G ports are going through the roof. Ethernet switch-based 10G port shipments, for example, grew 140 percent in 2007. Growth should remain healthy for years to come, as this is an area where buyers are putting their money where their mouths are.”

Other report highlights include:

  • 40G revenue is forecasted to increase at a fast clip, with a compound annual growth rate (CAGR) of 59 percent from 2007 to 2011.
  • In 2008, the average revenue per 10G Ethernet port on service provider equipment is more than 10 times that of enterprise equipment.
  • The number of 10G, 40G and 100G ports shipping on enterprise and service provider equipment will jump from more than one million in 2007 to 7.4 million in 2011, with 100G making its small debut in 2009.

Today, AT&T said it has completed its transition of its backbone to 40 Gbps IP/MPLS. The company’s entire 80,000-plus mile network is now a full-mesh optical network running at OC-768 speeds (story here).

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• Infonetics: 10G market to hit $9.5 billion in 2008 

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