Latest Data on 10G Highlights Cost Trends for Transport

Surging network traffic and network upgrades fueled rapid growth in shipments of 10G (10-gigabit), 40G and 100G capable networks in 2012, according to a new report from Infonetics Research. Momentum for 10G, 40G and 100G network ports is lowering costs for these electronics, which is welcome news to CHR clients.

"Overall, shipments of all port speeds have been on a steady upward path as a result of growing network traffic and the need to constantly upgrade networks, but the revenue growth opportunity is in higher-speed ports (10G, 40G, 100G - excluding 1G)," highlighted Matthias Machowinski, Infonetics' directing analyst for enterprise networks and video.

"While 1G port revenue is actually declining due to commoditization and becoming a standard feature on network equipment, we expect high-speed (10G+) port revenue to double by 2017, to over $42 billion."

Among the report's highlights:

  • The number of 1G, 10G, 40G, and 100G network ports shipped on service provider and enterprise equipment in 2012 grew 22% over the previous year, to top 360 million
  • 10G currently accounts for about 3/4 of all high-speed (10G+) ports shipped
  • 1G ports still make up a significant portion of overall shipments and will continue growing as 1G becomes the standard in service provider and enterprise access networks

The need for speed is driving higher port speeds. So much so, that Infonetics predicts 100G ports will account for 10% of optical transport spending in 2013. 

Bandwidth demand for applications like cell site backhaul, cloud computing, and video transport are all contributing to this ongoing surge of network traffic. We're advising clients to plan their networks accordingly, to not only meet this growing demand, but be in a position to capitalize on the growing number of high bandwidth revenue opportunities that these transport networks can enable.

Written by Michael Standley at 09:30