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 Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 2 TABLE OF CONTENTS 2/5 FIBER-OPTIC COMMUNICATION APPLICATION TRENDS 65 o Key parameters o • Global IP traffic forecast 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 Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 3 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 Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 4 TABLE OF CONTENTS 4/5 OPTICAL TRANSCEIVER TECHNOLOGY 155 o Comparison of EEL (DFB & FP) and VCSEL o • Evolution along silicon switching 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 o Trends 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 o Technology scaling differences 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 Optical Transceivers for Datacom & Telecom | Sample | www.yole.fr | ©2020 5 TABLE OF CONTENTS 5/5 OPTICAL TRANSCEIVER INDUSTRY 220 • Focus on China o • Recent Mergers & Acquisitions (M&A) 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 Services • Market 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