200G to Capture Over a Quarter of Coherent WDM Market in 2018

Infinera + Coriant Challenge Ciena for Compact Modular Market Leadership in 3Q18 Cignal AI Optical Applications Report

BOSTON (December 6, 2018) – Coherent 200G shipments continued to grow at a healthy pace and slowed the adoption of lower 100G speeds, as reported in the latest Optical Applications Report from market research firm Cignal AI. Pluggable 200G CFP and CFP2-DCO solutions will help the market expand even further in 2019, despite the anticipated widespread introduction of 400G coherent in 1H19.

The 3Q18 report also presents market share numbers for the Compact Modular equipment market which indicate that the combined Infinera + Coriant is well positioned to challenge compact modular market leader Ciena. This category measures hardware designed specifically for use in DCI and open disaggregated hardware applications and it is tracking to exceed $1 billion in revenue this year.

“Compact Modular equipment sales grew in all markets in the third quarter, and APAC was especially strong,” said Scott Wilkinson, lead optical analyst for Cignal AI. “Ciena continues to lead the market, but the combined Infinera + Coriant may prove to be a challenging competitor if it can reestablish technical leadership at 400G. ”

Cignal AI’s 3Q18 Optical Applications Report details market share for the third quarter of 2018 and provides forecasts in three key markets: compact modular equipment, advanced packet-OTN switching hardware, and 100G+ coherent WDM port shipments across multiple speeds. The Applications Report is issued quarterly. Cignal AI will also have an upcoming webinar to further present the 3Q18 report’s latest findings.

Additional 3Q18 Key Findings:

  • 400ZR is on track for introduction in 2019. R&D momentum is building among component and equipment makers. Total R&D industry spending for 400ZR and derivatives is in excess of $300M.
  • Compact Modular is expected to be a higher percentage of the North American market. Sales in North America rose again due to strong purchasing from the cloud network operators even as the region’s overall optical market declined in the third quarter. Compact modular now represents more than a quarter of all optical sales in North America as adoption outside of DCI applications expands.
  • Packet-OTN market growth continues outside of North America. Led by incumbent builds in Asia and Europe, Packet-OTN sales grew by more than 30% worldwide. Packet-OTN continues to be a core technology of choice for traditional network operators in those regions.

About the Optical Applications Report

The Cignal AI Optical Applications Report includes market share and forecasts for revenue and port shipments for optical equipment designed to meet the needs of specific applications: 100G+ coherent, and compact modular and advanced packet-OTN switching hardware. Deliverables include Excel files with complete data sets, PowerPoint summaries and Cignal AI’s Active Insight news reporting.

The Optical Applications Report features revenue-based market size and share for the hardware categories and detailed port-based market size and vendor market share for 100G+ shipments. Vendors examined include Acacia, Adtran, ADVA, Ciena, Cisco, Coriant, ECI, Ekinops, Fiberhome, Fujitsu, Huawei, Infinera, Inphi, NEC, Nokia, NTT Electronics (NEL), Padtec, Tejas, Xtera and ZTE. The reports may be accessed on the Cignal AI website, along with Cignal AI presentations and articles, by subscribing clients.

About Cignal AI

Cignal AI provides active and insightful market research for the networking component and equipment market and the market’s end customers. Our work blends expertise from a variety of disciplines to create a uniquely informed perspective on the evolution of networking communications.

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