Global 40G/100G market update

Publication Date	November 2008
Publisher	Ovum
Product Type	Report
Pages	18
ISBN Number	not applicable
Product Code	OVM00594

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Summary

After years of technology development, product announcements, and trials, the 40G market is finally moving to a generalized deployment phase. Globally, over 30 network operators have spent more than $250 million since 2005 deploying the technology. The largest 40G application by volume thus far is for routertorouter interconnect. Comcast and AT&T have the largest commercial deployments, but governmentfunded defense and research networks have contributed significantly to revenues. Global revenue for 40G line cards in 2007 was $178 million and we expect the market to grow 48% annually through 2013. Nortel introduced its DP QPSK to the market in April 2008 and has already gained over 30 customers; the technology is highly regarded by both carriers and competitors.

Content

Ovum view
Commercial activity
40G market taking hold quickest in North America
40G market drivers and inhibitors
40G deployments first driven by router interconnect but technology promises capex and opex improvements
Challenges to 40G deployment
Modulation formats
40G market data
Nokia Siemens leads global 40G market, which rose 20% in 1H08
40G is positioned for mass market adoption in 2009; industry hype is now focused on 100G
40G units will grow 89% annually
Forecast sensitivity
The path to 100G
40G is a stepping stone; 100G is the goal
Table of figures
- Figure 1 Global 40G line card spending, 20052007
- Table 1 40G capabilities by vendor
- Table 2 Pros and cons of 40G modulation formats
- Figure 2 Percent of 40G deployments (customers) per modulation type through September 2008
- Figure 3 Global 40G market share (rolling 4 quarters), 2Q08
- Figure 4 Global 40G optical networking market forecast, 200513
- Figure 5 Global 40G optical networking unit forecast, 200513
- Table 3 Field trials of 100G technology in North America