Optical Components

The Market Challenge

The optical component market is bifurcated between the Communications Service Providers and the Internet Content Providers. Traditionally, product development has followed the well-defined path of the CSPs. However, with the expansion of the data center market, component vendors now have two markets with differing requirements, cost structures and time to market timelines. ICPs need more product faster and are constantly looking for the next technology advancements to support build out of the global high capacity data center optical networks. Supporting both markets has placed onerous demands on the component manufacturers, pressuring component vendors’ margins while challenging the vendors to select winning technologies for their splintered client base.

How Ovum Helps You

Provide insight into component technologies and platforms volume, revenue and market trends

Sizing different component market segments and guide towards the high growth segments

Identifying new disruptive technologies and market threats

Highlighting key differentiating and winning component technologies and vendor strategies

Articulating how the CSPs and ICPs are planning for the introduction of new technologies

Articulating leading CSP and ICP network target architectures

Enabling data driven decision making on markets, new technologies, product development and manufacturing needs

“Optical component vendors need a platform to optimize price, power and size for their demanding customer base. Photonics integration is the platform”

Key Deliverables

Quarterly optical components market share reports

Annual optical components forecasts

Technology trend reports providing market updates and vendor activities

Thought leadership pieces based on new technology advances

Industry baseline datasets: vendor contract database, GDCA

Key conference and event summaries and briefs

Themes for 2018

New technologies and materials enable fundamental product advances
The network requirements are changing rapidly. ICPs and CSPs are asking for the next greatest technology even before they have installed the existing technology. To keep up with the changes, component manufacturers need to invest in R&D and manufacturing but need to understand which technology to invest in and when. Our service answers the questions on what technology is on the horizon and what is the demand so that the optical component companies can make informed investment decisions.
Technologies such as Graphene, InP, Meta-materials Silicon Photonics, On Board Optics, modulation formats and testing techniques are researched and analysed along with the market demand and competition. This will allow component vendors to more accurately allocate R&D and manufacturing assets to address the market demands.


Data center optical intra connect fabrics
The leading data center operators, ICPs, continue to build scale data centers. In addition, the ICPs rapidly change over to the next generations of data center architectures to take advantage of the increase in server port speeds and server density, resulting in a constant rotation in the intra data center optical fabric. The scale of the opportunity has created its own market. In addition to the speed race, reach advances can enable fundamental architectural changes to potentially an evolution beyond today’s leaf and spine architecture to a TOR-less future. Ovum continuously engages with the network visionaries and the ecosystem to highlight to clients the next shifts in the sector.


Optical Components enabling the optical WAN
The core of the access, metro, long haul and data center optical networks are the optical components. To plan for manufacturing and R&D, system providers and component vendors both rely on accurate data that determines the demand, technologies, competition, future technologies and requirements. Without this information, component suppliers will not be able to keep up with the demand that is needed to support the increasing expansion in bandwidth usage.
Our service continuously monitors the demand of optical components needed to support the bandwidth demands, giving the component suppliers and the system vendors the necessary information to accurately predict product demand and timing. This will allow the component vendor to maximize their margins and profit.

What’s New

Photonics integration

On-board optics

Materials advances

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