Optical Transceivers for Datacom & Telecom - From Technologies to Markets - i-Micronews
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From Technologies to Markets
Optical
Transceivers for
Datacom &
Telecom
Market and Technology
Report 2020
Sample
© 2020
TABLE OF CONTENTS 1/5
SCOPE OF THE REPORT 7 FIBER-OPTIC COMMUNICATION NETWORK ARCHITECTURES 58
METHODOLOGIES & DEFINITIONS 8 • Typical public fiber network architecture
ACRONYM REFERENCE GUIDE 9 • Generic diagram of FOC network
o Overview
COMPANIES CITED IN THIS REPORT 11
o Focus on data center network
ABOUT THE AUTHORS 12
o Example of Facebook data center topology
IMPACT OF COVID-19 & BASIS FOR OUR SCENARIOS 13 o Focus on 5G transport network
EXECUTIVE SUMMARY 16 • Network devices for telecom and datacom
FROM TELECOMMUNICATION TO FIBER-OPTIC COMMUNICATION 44 FIBER-OPTIC COMMUNICATION APPLICATION TRENDS 65
• Historical perspective • Global network IP traffic growth
• Introduction to telecommunication (TELECOM) o Macro-trends
o Analysis
• Introduction to data communication (DATACOM)
o Drivers
• Data Communication (DATACOM) vs. Telecommunication (TELECOM)
• Datacom vs. Telecom
• Fiber-Optic Communication (FOC)
• Trends in data center
o Overview
o Digital transformation
o Principle
o Data traffic
o Optical transmitter/receiver
o The case of video
o Optical transceiver
o Network architecture
o Benefits over metallic-based communication
o Challenges
o Classification of technologies
o Mega & Colocation mega data centers
o Highlights
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TABLE OF CONTENTS 2/5
FIBER-OPTIC COMMUNICATION APPLICATION TRENDS 65 o Key parameters
• Global IP traffic forecast o Notations and terminology
• Introduction
• Technical challenges - Shannon Limit
• Form factor – Overview
o Background
• Form factor – Trends
o Approaching it
• Suffixes for 100G OT and above - Overview
o Handling it
• Suffixes for 100G OT and above - Details
o 5 physical properties for modulation and multiplexing
o Form factors
OPTICAL TRANSCEIVER MARKET FORECAST 84 • Telecom - OT type by network connection
• Total OT • Datacom - OT type by network connection
o Shipments forecast by segment (2017-2025) • Mapping by application and data rate
o Sales forecast by segment (2017-2025) o Segmentation - Overview
o Segmentation - Multi-Mode vs. Single-Mode OT
• Datacom OT
o Key trends – Overview
o Shipments forecast (2017-2025)
o Key trends - Coherent technology/transceivers
o Sales forecast (2017-2025)
o Silicon Photonics (SiPh) trend - Overview
o ASP forecast (2017-2025)
o Silicon Photonics (SiPh) trend - Benefits
• Telecom OT
OPTICAL TRANSCEIVER APPLICATIONS 119
o Shipments forecast (2017-2025)
o Sales forecast (2017-2025) 1/2 • Datacom trends
o ASP forecast (2017-2025) o Overview
o Focus on intra-rack interconnection
o Focus on inter-rack interconnection
OPTICAL TRANSCEIVER INTRODUCTION 97
o Focus on inter-DC interconnection
• Technology and trends o Form factors - Interfaces used in datacenters vs. Data rates of OT
o Introduction o Global trends - QSFP-DD & OSFP (400G & 200G)
o Role of transceiver in networking o Global trends - QSFP56 & QSFP28 (200G & 100G)
o Key technologies o Status of migration to higher speed
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TABLE OF CONTENTS 3/5
OPTICAL TRANSCEIVER APPLICATIONS 119 OPTICAL TRANSCEIVER TECHNOLOGY 155
• Telecom trends • Introduction - Key parameters in fiber-optic communication
o Focus on Metro Core / Metro Access interconnection o Introduction
o Focus on 5G and Wireless Optical Transmission interconnection o Overview of parameters
o Global trends - SFP28/QSFP28/QSFP56 o Optical wavelength bands
o Global trends – CFP/CFP2/CFP4 o Bandwidth & reach/distance
o Global trends – CFP-DCO and ACO (coherent vs. direct detect) o Single Mode Fiber (SMF) and Multi-Mode Fiber (MMF) - Description
o Status of migration to higher speed o Single Mode Fiber (SMF) and Multi-Mode Fiber (MMF) - Modal Distortion
o Dispersion
OPTICAL TRANSCEIVER TRENDS 136
o Modulation - Analog vs. Digital signals
• 400G and beyond
o Modulation - Pulsed code modulation
o Trends heading to 400G
o Modulation - Intensity modulation vs. Coherent modulation
o Drivers & Benefits
o Modulation - Pulsed code modulation - RZ and NRZ
o Key applications
o Modulation - Pulsed code modulation - PAM4
o New interface types and form factors to be deployed
o Modulation - Toward higher data rates
o Datacom - 400G applications
o Parallelization
o Datacom - 400G compatibility with legacy systems
o Multiplexing - Overview
o Telecom - 400G applications
o Multiplexing - TDM & WDM
o Telecom - Pluggable coherent ZR/ZR+
o Multiplexing - Configuration of digital coherent optical transceiver circuit
• Introduction
o Multiplexing - Fixed grid vs. Flexible grid
• Use cases
o Forward error correction
• Coherent optical transmission
o Highlights - Advances of optical transmission technologies in recent years
• Form factors
o Conclusion
• Cost effective architecture
• Technology outcomes
• Toward silicon photonics
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TABLE OF CONTENTS 4/5
OPTICAL TRANSCEIVER TECHNOLOGY 155 o Comparison of EEL (DFB & FP) and VCSEL
• Evolution along silicon switching o Technology platform/type vs. Reach distance
o Uses case example - 100G data center
o Overview - Situation in data centers
o Integration with InP optical modulator (for coherent emission)
o PAM4 technology impact on switch chip technology
o Trends o Trend of silicon photonics
o Communication vs. Computing technology • Photodiode
o Disruptive improvements in silicon switches o Device types overview
o Photodetection principle
• Fiber-optic communication scaling
o Comparison of photodetectors
o Background of network traffic
o Technology scaling differences o Wavelength and material choice
o Integration with InP based mixers (for coherent detection)
o Single-wavelength optical transceivers and coherent transceivers
o Client / Ethernet transceivers • Toward Photonic Integrated Circuits (PIC)?
o Fiber capacities of commercial WDM systems
o Outlook
OPTICAL TRANSCEIVER INDUSTRY 221
• Conclusion
• Introduction
o Possible future speeds - Datacom and telecom
o Future - What shape will 800G ethernet take? • Mapping of key players (at transceiver level)
o Inside a DC • Market shares
o Paving the way (Telecom) o 2017-2019 evolution - Datacom and telecom
o 2017-2019 evolution - Datacom
OPTICAL TRANSCEIVER KEY COMPONENTS 202 o 2017-2019 evolution - Telecom
• Introduction • 2017-2019 revenue growth/decline for OT suppliers
• Laser diode • 2020 revenues trends
o 2 main types - EEL and VCSEL • Technology platform - Indium Phosphide (InP) vs. Silicon Photonics (SiPh)
o Wavelength and material choice
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TABLE OF CONTENTS 5/5
OPTICAL TRANSCEIVER INDUSTRY 220 • Focus on China
• Recent Mergers & Acquisitions (M&A) o Historical perspective
o Recent trends
o Overview
o InP platform - II-VI acquired Finisar • Global trends
o InP - Lumentum acquired Oclaro
• Trend with the 400G era
o InP - Others
o 400G for DCI and coherent technology
o Silicon photonics - Acquisitions of Cisco o Transition aspects – Overview
o Silicon photonics - Others
o Transition aspects - Focus on PAM-4
• Supply chain o Transition aspects - Focus on 400GbE ecosystem
o Overview o Getting ready for the future
o InP platform - The different models in DATACOM o Pluggable coherent 400ZR+ - Market opportunities
o InP platform - The different models in TELECOM o Pluggable coherent 400ZR+ - Players positioning
o SiPh platform
• Strategy APPENDIX 270
o Positioning and level of integration of key OT players
• Glossary
o Disaggregation vs. Vertical integration
o Product portfolio of key suppliers • OSI Model
• Competition • Fiber-optic communication network evolution
o Key competitive factors • Fibre channel
o Small players vs. Large players
• Infinband
• Cost aspects - Multi-mode vs. Single-mode transceivers 1/2
• Silicon photonic
o Transceivers suppliers
o Manufacturing aspects
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 6
SCOPE OF THE REPORT
In scope Out of scope
Optical Optical
Communication Communication
Datacom Datacom
Optical Optical Fibers,
Transceivers Connectors,
• Technology
Equipments,
• Industry Yours needs are
• Market Services
out of the report’
scope?
Telecom Telecom Contact us for a custom:
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 7
METHODOLOGIES & DEFINITIONS
Yole’s market forecast model is based on the matching of several sources:
Preexisting
information
Market
Volume (in Munits)
ASP (in $)
Revenue (in $M)
Information
Aggregation
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 8
COMPANIES CITED IN THIS REPORT
Acacia Communication, Accelink, Adtran, ADVA, Alibaba, Amazon Web services, Apple, Applied
optoelectronics Inc (AOI), Arista, ATOP, AZ by CyrusOne, Baidu , Broadcom, ChampionONE, Ciena
(Cyan), Cisco, ColorChip, Dell, E.C.I. Networks, Ekinops, Emcore, Eoptolink, Facebook, Fiberhome,
Finisar (now II-VI), Foxconn Interconnect Technology (FOIT), Fujitsu Networks, Fujitsu Optical
components, Gigalight, Google, HG Genuine Optics, Hisense Broadband, Huawei, Huawei,
HUBER+SUHNER Cube Optics AG, IBM+Softlayer cloud services , II-VI, Infinera (Coriant, Transmode),
InnoLight, Inphi, Intel, IPG Photonics (Menara Network), J.P. Morgan, Juniper Networks, Lumentum,
Macom, Mellanox, Microsoft, NEC, NeoPhotonics, Nokia (Alcatel Lucent), NTT Electronics, Oclaro, OE
Solutions, Oplink (MOLEX), Padtec, Rackspace , Ranovus, Renesas (Integrated Device Technology),
Rockley Photonics, Sicoya, Skorpios technologies, Source Photonics, ST, Sumitomo, Tencent,Verizon ,
Xtera,Yahoo, ZTE and more…
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 9
ABOUT THE AUTHORS
Biographies & contacts
Martin Vallo
Dr Martin Vallo is a Technology & Market Analyst specializing in solid-state lighting technologies, within the Photonics, Sensing & Display division at Yole Développement (Yole).
With 9 years’ experience in semiconductor technology, Martin is currently involved in the development of technology & market reports as well as the production of custom
consulting projects at Yole.
Prior to his work at Yole, Dr Vallo worked at CEA (Grenoble, France), with a mission focused on the epitaxial growth of InGaN/GaN core-shell nanowire LEDs by MOCVD
and their characterization for highly flexible photonic devices. Martin graduated from Academy of Sciences, Institute of Electrical Engineering (Slovakia) with an engineering
degree in III-nitride semiconductors.
Contact: martin.vallo@yole.fr
Pars Mukish
Pars Mukish holds a master’s degree in Materials Science and Polymers from ITECH in France and a master’s degree in Innovation and Technology Management from EM Lyon,
also in France. He works at Yole Développement, the ‘More than Moore’ market research and strategy consulting company, as senior market and technology analyst in the
fields of LED, OLED, lighting technologies, and compound semiconductors, He performs technical, economic, and marketing analyses. In 2015, Pars was named business unit
manager for emerging sapphire, LED/OLED, and display/lighting activities.
Previously, he worked as marketing analyst and techno-economic analyst at CEA, a French research center for several years.
Contact: pars.mukish@yole.fr
Dr. Eric Mounier
With more than 20 years of experience in MEMS, sensors and photonics applications, markets, and technology analyses, Eric provides deep industry insight into
MEMS and photonics current and future trends.
He is a daily contributor to the development of MEMS and photonics activities at Yole, with a large collection of market and technology reports as well as multiple
custom consulting projects: business strategy, identification of investments or acquisition targets, due diligences (buy/sell side), market and technology analysis, cost
modelling, technology scouting, etc.
Eric has contributed to more than 250 marketing/technological analyses and 80 reports, helping move the MEMS and Si photonics industry forward. Thanks to his
extensive knowledge of the MEMS, sensors, and photonics-related industries, Eric is often invited to speak at industry conferences worldwide.
Moreover, he has been interviewed and quoted by leading media throughout the world. Prior to working at Yole, Eric held R&D and Marketing positions at CEA
Leti in France. Eric has a Semiconductor Engineering degree and a Ph.-D in Optoelectronics from the National Polytechnic Institute of Grenoble.
Contact: eric.mounier@yole.fr Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 10Impact of COVID-19 & Basis for our scenarios
ECONOMIC OUTLOOK
Initial statements
• The COVID-19 has deep implications for the telecom infrastructure supply chain. The disease is affecting China and is
spreading within Asia and into Europe and North America – the most important markets wherein the datacom and telecom
technologies have been heavily deployed.
• End users spending on IT infrastructure (server and enterprise storage systems) will decline in 2020
• Interesting situation is in optical networking market. Demand for networking and cloud services is huge today. Due to
sanitary confinement people work and communicate from home as well as take advantage of digital entertainment
connected to the internet. Telecom networks and data centers will continue to operate while most of the manufacturing
and travelling businesses are shutting down. Network and datacenter operators will try to maintain high bandwidth for
storage and streaming services and continuously working on enhancing network capacity.
• Demand for optics by Chinese data-center operators (Alibaba, Baidu, Bytedance, Tencent, …) is very strong with the
Chinese government support for deployment 5G and cloud data centers. That means the future scenario for optical
communication sector doesn't have to end badly if manufacturing of optical systems and module restart in 3 months and
Chinese consumers will continue subscribing cloud services this year.
• In conclusion, we assume different negative impact on telecommunication infrastructure systems. Elements of the impact
include changing demand expectations from the buyers, supply chain shortages and logistical delays, short-term component
price increases, and a suppressed economic and social climate. Even though a demand for bandwidth is high, the optical
communication industry will be negatively impacted in sales due to less investing to the legacy infrastructure instead of
higher investing to the new ecosystems.
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 12BASIS OF OUR SCENARIOS
Server and Enterprise Storage Systems
• Middle case / Best case
• How long this recession will last is also unclear now.
• The current probable scenario server market revenues will decline 4-6% year over year
• The enterprise storage systems market is expected to decline 5-7% year over year
• The both servers and storage systems return to growth in the second half of the year
Optical networking systems and modules for datacom and telecom
• Middle case / Best case
• How long this recession will last is also unclear now. Difficult to predict the economic situation in the
next 3-6 months.
• The downturn in optical networking and transceiver sales should be short time. We expect that it will
be followed by a very strong recovery, given the new urgency for adding bandwidth across the
networking infrastructure.
• The optical transceivers market is expected to decline >10% in Q1 andOPTICAL TRANSCEIVER MARKET – ANALYSIS BY APPLICATION
Optical transceiver market revenue forecast by segment (2019 vs. 2025)
Datacom $12.1B
Telecom CAGR 20%
2025
$17.7B
$4B 2019 $5.6B
CAGR 7%
$7.7B
$3.7B
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 14FROM TELECOMMUNICATION TO FIBER-OPTIC COMMUNICATION
Data Communication (DATACOM) vs. Telecommunication (TELECOM)
• Data communication refers to the transmission of information between two or more points mostly using fiber glass as a communication
channel and some specific form (set of 0’s and 1’s) understandable to that channel. In this report data communication are linked with the
datacenters and typical transmission distance is up to 100km (DCI).
• Data communication system ensure:
• Delivery: The system must deliver data to the correct destination. Data must be received by the intended device or user.
• Accuracy: The system must deliver data accurately. Data that have been altered in transmission and left uncorrected are unusable.
• Timeliness: The system should transfer data within time. Data becomes useless if it is delivered late. In case of video, audio and voice data, timely delivery means
that data is delivered as it is produced.This type of delivery is called real-time transmission.
• Telecommunication is the transmission of signals over a distance for the purpose of communication. In modern times, this process almost
always involves the use of electromagnetic waves or optical fibers by transmitters and receivers.
• Telecommunication term defines any assisted transmission. It could be telephone, telegraph, radio,TV, even smoke signals.
• Telecommunication system consists of three elements:
• A transmitter that takes information and converts it to a signal;
• A transmission medium that carries the signal;
• A receiver that receives the signal and converts it back into usable information.
Data Communication Vs.Telecommunication
• They are both a form of communication; data communication is a subset of Telecommunication
• Telecommunication sends data between two links by means of electromagnetic. (Like satellite), while data communication means send data by
telecommunication, it consists of codes of 0’s and 1’s.
• In computer means, data communication is digital data and telecommunication is equipped to send digital data to receiver.
• Telecommunication is any communication over a distance. Data communication usually implies digital, and often excludes voice services.
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 15FIBER-OPTIC COMMUNICATION NETWORK ARCHITECTURES
Generic diagram of FOC network - Overview
Telecom networks
WDM systems
LONG-HAUL
• High performance
• Fiber constrained
Long-haul networks
SONET/SDH
5G
METRO
FTTx • Space and power
Datacom networks constrained
• Pay as you grow model
LAN
EDGE
• Shorter product life
cycles
Source: NTT * • Cost and power sensitive
*5G network and Wireless access network is not part of datacom network
5G networks Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 16FIBER-OPTIC COMMUNICATION APPLICATION TRENDS
Global network IP traffic growth - Macro-trends
• Each year, Global device and connection growth
various new (Market share 2018 → 2023) 2023
devices with Other (2% → 4%)
increased Tablets (4%→3%)
capabilities and PCs (7%→4%) 1.1B
intelligence are TVs (including game consoles) (13%→11%)
introduced and Non-Smartphones (14%→5%)
adopted in the 1.6B
The trend is market.
Smartphones (27%→23%) 0.8B
accelerating the Machine-to-Machine (M2M) (33%→50%)
increase in the • The average
number of 2018
average number 3.2B
of devices and
devices and 0.4B
connections per 1.2B
connections per capita will grow 0.7B 14.7B
household and from 2.4 in 2018
per capita. to 3.6 by 2023 2.7B
1.4B 6.7B
2.4B
4.8B ~29.3B
6.1B CAGR 10%
~18.4B (Source: Cisco Annual Internet Report)
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 17FIBER-OPTIC COMMUNICATION APPLICATION TRENDS
Datacom vs. Telecom 1/2
Digital optical communication
Telecom
Datacom
Metro access Metro core Long haul
Datacenters
800 km
The driver
applications of Wireless - 5G
the fiber-optic
network are • New era of connectedness is increasingly universal
lagerly digital • The capacity of the digital communications networks must increase exponentially
applications • More than 20 billion connected devices and machine learning and artificial
and services. intelligence will continue to accelerate this trend
The rapid rise of internet
traffic that is going through Deployment of modern communications has rapidly expanded from being the
mega data centers operated domain of telecom service providers to deployments by enterprises and
by hyperscalers. service “mega” data center enterprises.
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 18OPTICAL TRANSCEIVER MARKET
TOTAL OT shipments forecast by segment (2017-2025)
The OT market
is expected to
grow from 183
Munits in 2020
to 211 Munits
in 2025, mostly
driven by
Ethernet optical
modules.
CAGR2020-2025 =
+6%.
• Although the total shipments in 2020 can decrease up to 15% in the worst scenario, the total revenue is expected
to moderately increase. It is a result of much more expensive optical modules above 100G of data rate. However
the operation costs - price for transmission of 1G/s is rapidly decreasing.
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 19OPTICAL TRANSCEIVER MARKET
DATACOM OT revenues forecast (2017-2025) 1/2
• The Datacom market
growth will be driven by
adoption of expensive higher
data rate optical modules
which migrate from
core/spine networks down
The OT market to inter-rack connections.
for Datacom is
expected to
grow from
$4.2B in 2020
to $12.1B in
2025.
CAGR2020-2025 =
24%.
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 20OPTICAL TRANSCEIVER INTRODUCTION – TECHNOLOGY & TRENDS
Key technologies
Chip Optical Sub-Assembly Transceiver
Bill of materials
Components
Scheme
Technologies
Details of Chip components - laser and photodiode are available in the chapter Optical Transceiver Components
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 21OPTICAL TRANSCEIVER INTRODUCTION – TECHNOLOGY & TRENDS
Form factors - Mapping by application and data rate
Datacom Telecom
800 km
LAN/ METRO METRO METRO LONG-HAUL
Intra DC Access/Inter Access/5G Core
10G-25G 40G 100G 200G 400G DC
SFP XFP SFP+
SFP28
QSFP28 –
QSFP56 – QSFP-DD
QSFP+ SR/DR/FR/
SR/DR/FR OSFP – SR/DR/FR
QSFP CWDM/PSM
QSFP28– QSFP56 – QSFP-DD
LR/ER/LWDM LR/ER OSFP – LR/ZR
CFP2-LR/ER CFP4-LR/ER CFP8-LR
5”x7” 4”x5”
module module CFP2-ACO OSFP/QSFP-DD
CFP2-DCO ZR/ZR+
CFP-DCO
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 22OPTICAL TRANSCEIVER INTRODUCTION – TECHNOLOGY & TRENDS
Key trends - Coherent technology/transceivers
Multi mode transceiver Single mode transceiver Coherent transceiver
Short reach (hyperscale DC,
Application enterprise, storage)
Long reach (hyperscale DC) Long reach (Telecom)
Laser VCSEL
xxx xxx
source 850 nm
The coherent
technology is Modulation xxx NRZ, PAM4 xxx
consider as a
most advanced Reach 3 m – 100 m xxx > 10 km
but also most
expensive
technology
today.
Advantage/
Disadvantage
The MM, SM and coherent transceivers have been driven by scaling of various electrical and optical technologies.
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 23OPTICAL TRANSCEIVER INTRODUCTION – TECHNOLOGY & TRENDS
Silicon Photonics (SiPh) trend - Benefits
• Smaller photonic components: • Lower power consumption:
Size matters when we talk about device integration into Data centers are extremely power-hungry and will
sub-systems. As an example, for sensing applications, optical consume a significant fraction of the world electricity if no
technology has the highest sensitivity but lacks of technology shift occurs. Photonic proposes lower energy-
miniaturization because most of the time hybrid dies need consumption solutions that could be turned into reduced
to be assembled together and long optical path is required heat dissipation, lower environmental footprint and lower
(thus the optical module is often bulky). So, photonic offers operating costs. In a previous Yole report (2015 Data
the best combination of high accuracy and long lifetime and Centers), we shown Si photonics interconnects could
further integration opens the way to portable systems for reduce power consumption by 5-10%.
consumer applications.
• Leverage semiconductor industry:
Manufacturing PICs is taking benefit
from the batch manufacturing of the
IC industry thus lowering cost down.
• High data rates: • Lower $/Gbps:
Here again, data rates are increasing in data centers as we In 2015, Facebook specified a 100G transceiver using
are heading to 400Gb/s. Direct Attach Cable with Copper single-mode fiber it believes it can drive to a cost of $1/GB.
is limited to 30m and 10Gb for intra data center This $1/Gb limit has been one of the cost target of the last
interconnects. For longer distance and data rate, InP and Si years for the optical transceivers community. To hit the
photonics are used. For example, Infinera ICE5, announced • Better reliability: lower costs, the tech giant relaxed distance requirements
only 24 months after ICE4, delivers a significant leap in to 500m down from 2km and eased specs on operating
capacity per wavelength, from 200G to 600G, and offers Compared to legacy optics with temperature and product lifetime. Today, with an average
improvements in fiber capacity, reach and power efficiency hybrid integration. selling price of $200 for a 100Gb transceiver, we are at
to address the most demanding high-scale applications. $2/Gb. Si photonics can leverage the benefits from the IC
manufacturing industry to lower the costs down.
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 24OPTICAL TRANSCEIVER APPLICATIONS – DATACOM TRENDS
Status of migration to higher speed
2015 2016 2017 2018 2019 2020 2021 Future
Within the data center racks
10G
Being deployed 25G
Due to the Starting to Volume ramp
ongoing large 100G
be deployed Starting to Volume ramp
increases in be deployed
bandwidth Between data center racks
demand, Data
Center 40G
Being deployed 100G
connections are
Starting to Volume ramp
expected to move 400G Source: Finisar
be deployed Starting to Volume ramp
from 25G/100G
be deployed
to 100G/400G
Data Center Interconnect & WAN
10G DWDM with Tunable laser • Rapid evolution of DSPs for optical
Being deployed 100G/200G Coherent communication technologies shorten
Starting to Volume ramp life cycle of the single mode and the
be deployed 400GE & Coherent multimode optics used in the data
Starting to Volume ramp
be deployed
centers.
Starting to be deployed 800G
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 25OPTICAL TRANSCEIVER TRENDS – 400G AND BEYOND
New interface types and form factors to be deployed 1/2
CFP8 QSFP-DD and OSFP
New form • 1st generetion 400G form • 2nd generetion 400G form factors
factor factor
standards are • Applications: metro core
emerging for routers and DWDM client
interfaces
all types of • Slightly smaller than CFP2
interconnecti • Support
ons • CDAUI-16 16x25G NRZ
• CDAUI-8 8x50 PAM4
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 26OPTICAL TRANSCEIVER TRENDS – 400G AND BEYOND
TELECOM - Pluggable coherent ZR/ZR+ - Coherent optical transmission 2/2
DCO/ACO → 400G ZR → 800G ZR
industry efforts to deliver a viable coherent solution
With rising Past Today (ZR) Future (800G)
data demand,
data center • Coherent modules
operators are significantly larger
seeking a low than their intensity
• Advances in CMOS
power, small modulated
• Integrated optics
form-factor counterparts
• Coherent digital
solution to • Need for powerful
signal processor
cover edge- digital signal
(DSP) designs
DCI distances. processors and the
• DSP coding and
use of discrete
equalization
optical components.
algorithms
• Targeted long-haul
applications
These modules will provide the necessary bandwidth increases for the regional or metro networks
for the mega-DC operators such as Google, Microsoft, Amazon, Facebook, and many others.
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 27OPTICAL TRANSCEIVER TECHNOLOGY - KEY FOC PARAMETERS
Overview of parameters
Optical wavelength bands Bandwidth Reach/Distance SMF/MMF
This chapter will
provide the
reader with a
rudimentary
understanding of
inevitable fiber
optic
communication
parameters and Dispersion Modulation Multiplexing Parallelization
their impact on
today’s trends.
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 28OPTICAL TRANSCEIVER TECHNOLOGY - CONCLUSION
Possible future speeds - Datacom & Telecom
Now 2025
Top cloud 100G/200G/
800G/1.6T
data centers 400G
Rest cloud
Heading 100G 800G
data centers
toward higher
speeds the Large
range of form 100G/400G 800G/1.6T
enterprises
factors should
be reduced to Rest of
maintain 100G 400G
enterprises
compatibility.
Services
Provides 100G/400G 1.6T
(Telecom)
Source: Ethernet Alliance
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 29OPTICAL TRANSCEIVER TECHNOLOGY - CONCLUSION
Paving the way (Telecom) 1/2
• New coherent pluggable modules QSFP-DD, OSFP and CFP2-DCO will drive a paradigm shift in how DCI is deployed by cloud and
telecom service providers, enabling high-density IP over DWDM on switch and router platforms that also have the performance
required for metro and long-haul networks.
Inside DC DCI (Metro Access) DCI (Metro Core) DCI (Long Haul)
PSM4, LR4, PAM4 (100G, QSFP-DD) QPSK/8QAM/16QAM QPSK/8QAM
CWDM4 Coherent Coherent Coherent
100G 100G/200G/400G/600G 100G/200G/400G 100G/200G/300G
CWDM DWDM DWDM DWDM
The idea concept
Future
is to use the same 5m 2 km 10 km 100 km 800 km 10 000 km
100G/200G/400G • Development of an industry-wide ecosystem
Distance
pluggable digital that supports pluggability and a new era of
Past
coherent optics interoperability for 400G.
1. Coherent DSP ASICs have been designed for dedicated • The ecosystem based on ZR will enable telecom
(DCO) module transport boxes. The power consumption and package
across all size had not been sufficiently optimized for QSFP- DD and cloud providers to not only deploy solutions
distances. or OSFP. These boxes add cost and dissipate power. for DCI edge applications up to 120km but also
2. Lack of Interoperability across generations of coherent use the same 100/200/300/400G solutions across
solutions for 100G and 200G. the entire DCI infrastructure.
3. Lack of a clear application space, as the conventional Inside DC DCI (Any distance)
coherent technology had been deployed in many forms
across various distances and optical fibre span DR4, FR4, QPSK/8QAM/16QAM (400G ZR/ZR+)
Coherent
configurations.
400G Pluggable DCO/100G/200G/400G
CWDM DWDM
5m 2 km 10 km 100 km 800 km 10 000 km
Distance
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 30OPTICAL TRANSCEIVER KEY COMPONENTS
Laser diode - Comparison of EEL (DFB & FP) and VCSEL
Transmission Speed
DFB FP VCSEL
xx xx xx xx xx
Mbps Mbps Gbps Gbps Gbps
++ + –
850 nm LED PAROLI*
Different laser AlGaAs/AlAs
xx m Multi Mode 850 nm VCSEL Multi Mode
Transmission Distance
diode InGaAsP/InP InGaAsP/InGaP InGaAsN/GaAs
technologies Multi Mode Multiple
xx m Fibers
are present in – + ++
optical
communication xx km
– – ++ 1.3 µm Fabry-Pérot 1.55 µm
sector DFB
depending on Single Mode 1.3 µm DFB Single Mode
++ – + xx km
transmission Single Mode Externally
Modulated
distance and
++ ++ – xx km
speed.
*PAROLI = Parallel optical link
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 31OPTICAL TRANSCEIVER INDUSTRY
Market shares - 2017-2019 evolution - DATACOM & TELECOM 3/3
2017 2018 2019
Telecom Telecom
Telecom (revenue)
(revenue) (revenue)
XX% XX% Datacom
XX% Datacom Datacom (revenue)
(revenue) (revenue) XX%
XX% XX%
• Event though much higher ASP of telecom optical transceivers (coherent technology or outdoor graded), revenues from
datacom dominated recent years due to deployment of high volume ethernet transceivers and AOCs for cloud builders,
large enterprise and HPC centers
• Splitting market into datacom and telecom is becoming more blurred as metro networks which were typical telecom before
are more attractive for interconnections of data centers. If the coherent technology will go down in cost and thus become
feasible to be implemented in data centers we won’t be able to distinguish technologies addressing datacom and telecom
markets.This segmentation can disappear.
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 32OPTICAL TRANSCEIVER INDUSTRY
Market shares - 2017-2019 evolution - TELECOM 1/2
2017 2018 2019
Total Total Total
2017: 2018: 2019:
$x.xxB $x.xxB $x.xxB
x% x%
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 33OPTICAL TRANSCEIVER INDUSTRY
Technology platform - Indium Phosphide (InP) vs. Silicon Photonics (SiPh)
Indium Phosphide – InP Silicon Photonics – SiPh
The InP
platform and
Silicon
Photonics will
coexist in the
future.
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 34OPTICAL TRANSCEIVER INDUSTRY
Mergers & Acquisitions (M&A) – Outlooks
Hyperscalers, Cloud builders, Enterprises, HPC centers
• In recent years we saw the strategical (Customers)
investment of the market leaders to
strengthen their positions.
• In spite of consolidations the market
is still very fragmented. Many
companies compete and there is no Optical modules vendors
single or small group of companies (Suppliers)
which dominate the market.
Future: Disaggregated Vertically
supply chain integrated
• We expect aggregate merger and
acquisitions activity to be related to:
• Technology expertise
• High volume production and low cost
to meet mainly hyperscalers
expectations
• Strengthening the position in the region
– China or USA
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 35OPTICAL TRANSCEIVER INDUSTRY
Strategy - Product portfolio of key suppliers
DATACOM TELECOM
Fibre SONET/ CWDM/ 5G & Bidi High Speed
Ethernet Infiniband AOCs Coherent
channel SDH DWDM Wireless Access Components
II-VI (+Finisar)
Lumentum (Oclaro)
Different
Foxconn Interconnect Technology (FIT)
strategies is
HG Genuine Optics
also projected
into the Accelink
product Sumitomo
portfolio and InnoLight
segment Source Photonics
interest. Cisco (Acacia)
Fujitsu Optical components
MOLEX (Oplink)
NeoPhotonics
Macom
HUBER+SUHNER Cube Optics AG
NTT Electronics
In portfolio Not in portfolio
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 36OPTICAL TRANSCEIVER INDUSTRY
Trend with the 400G era – Transition aspects – Focus on PAM-4
2017/2018 2019/2020 • Completing 400GbE ecosystem from different
suppliers should guarantee a competitive
100GbE 400GbE 400GbE supply chain for 400GbE module makers
trying to ramp production at the end of 2019
$250 – $400 $3,500 – $10,000 < $3,000 • Integrating retimers into the optical
transceiver modules is an intermediate
Broadcom and step to SiPh
Inphi are two I. PAM-4
large and Today
trusted In the past
suppliers of
400GbE PAM-4
silicon – both
trying to offer
customers a
differentiated
solution.
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 37OPTICAL TRANSCEIVER INDUSTRY
Trend with the 400G era – Pluggable coherent 400ZR+ – Players positioning
DSP (TROSA) Optical module Level of integration
- - QSFP-DD/CFP2-DCO Vertically integrated Ciena, Infinera, Acacia,
and Inphi are planning
- - QSFP-DD - a fully vertically
Yes - - - integrated strategy to
cover the broadest
Yes - - -
possible market reach
Plenty of - - - Vertically integrated
companies are - - QSFP-DD - As component
investing developers repurpose
Yes - - - their designs to
$500M in address adjacent
- - QSFP-DD -
total to bring markets, more and
400ZR to the No - - - more companies are
market. Yes - - Component manufacturer beginning to endorse
some form of 400ZR
- - - Telecom modules manufacturer
in their future
- - - Vertically integrated roadmaps.
- - QSFP-DD -
Yes - - -
- - - -
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 38YOLE GROUP OF COMPANIES RELATED REPORTS
Yole Développement
Silicon Photonics 2020 VCSELs – Market and Edge Emitting Lasers: Market
Technology Trends 2019 and Technology Trends 2019
Contact our
Sales Team
for more
information
GaAs Wafer and Epiwafer Market:
InP Wafer and Epiwafer Market RF, Photonics, LED, Display and PV
– Photonic and RF Applications Applications 2020
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System Plus Consulting
Intel Silicon Photonic 100G Intel Silicon Photonic 100G
Contact our
CWDM4 QFSP28 Transceiver PSM4 QFSP28 Transceiver
Sales Team
for more
information
Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 40CONTACTS
REPORTS, MONITORS & TRACKS
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