ACG Research has released its 2H 2016 worldwide optical infrastructure and optical Data Center Interconnect (DCI) forecasts which run through 2021. According to the research firm, the worldwide optical infrastructure market is predicted to grow from $13.6 billion in 2016 to $17.3 billion by 2021. Purchases of optical DCI equipment are expected to grow from $1.69 billion in 2016 to $4.3 billion in 2021. Growth is predicted in all geographic regions.
ACG reckons that in 2016, metro optical increased 5.5% and long haul delivered 10.5% growth. APAC remains the largest optical networking region, with solid 10% growth in spending in 2016. It is anticipated that worldwide metro optical spending would increase 9.4% in 2017. Looking forward, the five-year 2016 to 2021 long haul optical CAGR is 5.4%, with revenue reaching $6.7 billion in 2021. The five-year metro optical CAGR is adjusted to 7.8%, with this sector reaching $9.4 billion in 2021.
Optical DCI equipment revenue was $467.1 million in 4Q 2016, and exceeded $1.69 billion in revenue in 2016, with 63.5% year-over-year growth. Optical DCI revenue is projected to grow at a 20.6% CAGR 2016 to 2021. AGC believes the fundamental underpinnings of DCI growth remain strong, with increases in data centre bandwidth, increases in service requirements for data centre interconnectivity, and growth in the number of data centres worldwide.
Meantime, over the period surveyed, ACG predicts the metro optical DCI growth rate will exceed long haul optical DCI, and SFF optical DCI appliances will grow at a faster rate than multi-slot optical DCI chassis-based solutions, although multi-slot chassis solutions will remain dominant throughout the forecast. With 82.8% growth in 2016, the SFF optical DCI appliance segment is judged to remain highly competitive, with recent new product announcements and upgrades, including the Ciena Waveserver Ai, Fujitsu’s 1Fininity Release 2.1 and segment leader Infinera’s debut of Cloud Xpress 2.