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August 07, 2013

CIR Report Forecasts Green Datacenters Will Drive Optical Interconnect Market to $2.2 Billion by 2018

CHARLOTTESVILLE, Va.Aug. 7 -- According to a new report from Communications Industry Researchers, Inc. (CIR), the market for rack-based and board-to-board interconnection will grow from $1.1 billion this year to $2.2 billion in 2018.  The market is expected to stabilize after that.

"Revenue Opportunities for Optical Interconnects: Market and Technology Forecast – 2013-2020. [Vol. I Board-to-Board and Rack-Based]" is the latest industry analysis report from CIR, which has been tracking the optical communications sector for more than 20 years. 

From the report:

All the usual suspects that drive the proliferation of fiber optics in the data center will apply: faster processors, bulky copper cables and more video.  But in this report CIR claims that two new factors will drive optical interconnection in the data center in the next few years.

One of these factors is the rise of "big data," CIR expects that massively parallel computing – with thousands of CPUs deployed in 100s of racks – will become part of general business computing in large data centers.  High-speed optical interconnection in this computing environment is a necessity to avoid the interconnection bottleneck.

Meanwhile, power consumption is becoming increasingly important, because of the rising real cost of energy and because of current environmental policy trends.  According to one source, large data centers can consume the equivalent of nearly 180,000 homes. As a result, replacing copper interconnection with low-power optical interconnection has become an imperative for the truly green "data center". Not only does the switch to optical interconnection save power directly but it also cuts down on the need for air conditioning in the data center.

About the report:

This new report provides strategic guidance on revenue generation from optical interconnection at the rack- and board-to-board level, as well as granular 8-year forecasts in both volume and value terms, with breakouts by applications and types of products. CIR's next report (available next month) will assess the commercial potential for optical interconnection at the board and chip level.

In addition to an in-depth analysis of the optical interconnect market, this report also discusses the activities of Avago, BinOptics, Cisco, Corning, Dell, FCI, Finisar, Juniper and Kotura, Lumencor, Luxtera, Neophotonics, Reflex Photonics, Samtec and others.

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Source: Communications Industry Researchers

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