New CIR report details key component trends and opportunities for 10-Gbps networking technologies - Market Intelligence

The market for 10-Gbps electronic and optical components and modules will grow to $856 million by 2008, according to a new report from CIR, a telecommunications and semiconductor industry analyst firm based here. Highlights from the report include the following:

--Average annual growth rate for the 10-Gbps sector will be around 16 percent for the 2004 to 2008 period. This is a considerable improvement on the 8 percent expected for the 2002-to-2004 period.

--Components and technology innovations are now the primary source of cost, performance and functionality advantage for 10-Gbps equipment vendors. These are most likely to stem from improved packaging, better power consumption and thermal control, as well as enhanced manufacturing processes.

--Components manufacturers that can demonstrate how their products will enable 10-Gbps networks to have clear cost advantages over networks based on multiple lower-rate lines will quickly gain better margins and market share. Networking technologies have not usually taken off until they demonstrate about ten times the performance of the next lowest speed technology for about one-third the cost. 10-Gbps technologies have not yet achieved this. Component manufacturers making this kind of leap forward will attract considerable profits to themselves.