Sunstar Communication Technology Co.,Ltd

LC: Global Ethernet transceiver sales will grow 40% in 2024

Categories:Industry News
Time of issue:2024-04-08

(Summary description)LightCounting (LC) has updated its High Speed Ethernet Optics Report50G SFP-DD PON OLT. Market volatility is not new or surprising for Ethernet transceiver vendors, but it is always stressful to see the market decline. The previous decline in 2019 was due to reduced spending by cloud computing companies, which now dominate the market demand for Ethernet transceivers. At the end of 2022, cloud companies again reduced their spending, leading to a bleak market outlook in early 2023. A year later, the market was booming50G SFP-DD PON OLT. LC previously expected Ethernet optical transceiver sales to decline by 5-10% in 2023, but surging demand from Google and Nvidia has kept the market growing in the single digits. In the previous edition of this report, LC also significantly increased its forecast for 400G/800G transceiver sales, and in this report, the analyst firm slightly raised its forecast again. LC now expects 40% growth in 2024, more than 20% growth in 2025, and double-digit growth in 2026-2027, as shown in the chart below50G SFP-DD PON OLT. Chart: Ethernet Optical transceiver market Growth rate (Source: LightCounting) This growth will not continue indefinitely. Any slowdown in Nvidia or cloud companies buying optical products could turn the market dynamics around. The timing of this decline is unpredictable. We just know it's going to happen at some point. LC's model suggests that the market will achieve a soft landing with single-digit growth rates in 2028-2029, but it is more likely that we will see another sharp decline followed by a recovery, consistent with the market turmoil of the past 15 years. Recession fears have receded, but they continue to weigh on spending by telecom operators, whose revenues are not growing. However, we can't know for sure whether a recession will come until it actually starts, and that's half a year after economists officially declare it. Until then, we will be busy discussing the timing of economic recovery. What remains certain is that optics are critical to data centers and other global network infrastructure. Recent advances in generative artificial intelligence make the future even more exciting. Keep that in mind when dealing with market volatility.

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LC: Global Ethernet transceiver sales will grow 40% in 2024

(Summary description)LightCounting (LC) has updated its High Speed Ethernet Optics Report50G SFP-DD PON OLT.

Market volatility is not new or surprising for Ethernet transceiver vendors, but it is always stressful to see the market decline. The previous decline in 2019 was due to reduced spending by cloud computing companies, which now dominate the market demand for Ethernet transceivers. At the end of 2022, cloud companies again reduced their spending, leading to a bleak market outlook in early 2023. A year later, the market was booming50G SFP-DD PON OLT.

LC previously expected Ethernet optical transceiver sales to decline by 5-10% in 2023, but surging demand from Google and Nvidia has kept the market growing in the single digits. In the previous edition of this report, LC also significantly increased its forecast for 400G/800G transceiver sales, and in this report, the analyst firm slightly raised its forecast again. LC now expects 40% growth in 2024, more than 20% growth in 2025, and double-digit growth in 2026-2027, as shown in the chart below50G SFP-DD PON OLT.

Chart: Ethernet Optical transceiver market Growth rate (Source: LightCounting)

This growth will not continue indefinitely. Any slowdown in Nvidia or cloud companies buying optical products could turn the market dynamics around. The timing of this decline is unpredictable. We just know it's going to happen at some point. LC's model suggests that the market will achieve a soft landing with single-digit growth rates in 2028-2029, but it is more likely that we will see another sharp decline followed by a recovery, consistent with the market turmoil of the past 15 years.

Recession fears have receded, but they continue to weigh on spending by telecom operators, whose revenues are not growing. However, we can't know for sure whether a recession will come until it actually starts, and that's half a year after economists officially declare it. Until then, we will be busy discussing the timing of economic recovery.

What remains certain is that optics are critical to data centers and other global network infrastructure. Recent advances in generative artificial intelligence make the future even more exciting. Keep that in mind when dealing with market volatility.

Categories:Industry News
Time of issue:2024-04-08
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Information

LightCounting (LC) has updated its High Speed Ethernet Optics Report50G SFP-DD PON OLT.

Market volatility is not new or surprising for Ethernet transceiver vendors, but it is always stressful to see the market decline. The previous decline in 2019 was due to reduced spending by cloud computing companies, which now dominate the market demand for Ethernet transceivers. At the end of 2022, cloud companies again reduced their spending, leading to a bleak market outlook in early 2023. A year later, the market was booming50G SFP-DD PON OLT.

LC previously expected Ethernet optical transceiver sales to decline by 5-10% in 2023, but surging demand from Google and Nvidia has kept the market growing in the single digits. In the previous edition of this report, LC also significantly increased its forecast for 400G/800G transceiver sales, and in this report, the analyst firm slightly raised its forecast again. LC now expects 40% growth in 2024, more than 20% growth in 2025, and double-digit growth in 2026-2027, as shown in the chart below50G SFP-DD PON OLT.

Chart: Ethernet Optical transceiver market Growth rate (Source: LightCounting)

This growth will not continue indefinitely. Any slowdown in Nvidia or cloud companies buying optical products could turn the market dynamics around. The timing of this decline is unpredictable. We just know it's going to happen at some point. LC's model suggests that the market will achieve a soft landing with single-digit growth rates in 2028-2029, but it is more likely that we will see another sharp decline followed by a recovery, consistent with the market turmoil of the past 15 years.

Recession fears have receded, but they continue to weigh on spending by telecom operators, whose revenues are not growing. However, we can't know for sure whether a recession will come until it actually starts, and that's half a year after economists officially declare it. Until then, we will be busy discussing the timing of economic recovery.

What remains certain is that optics are critical to data centers and other global network infrastructure. Recent advances in generative artificial intelligence make the future even more exciting. Keep that in mind when dealing with market volatility.

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