IP-over-DWDM Port Deployments to Top 700k in 2027
BOSTON (August 6, 2024) – Cloud Operator Datacenter Interconnect (DCI) is propelling high volume adoption of coherent pluggable optics, according to the latest Active Insight report, IP-over-DWDM Pluggables Forecast, from research firm Cignal AI.
IP-over-DWDM, which is the practice of using coherent optics directly within routers and switches, has transformed how Cloud Operators connect their data centers over short distances. The standardization, development, and maturation of 400G pluggable coherent optics (400ZR) has fortuitously coincided with the ongoing AI spending boom, with volumes increasing faster than any previous DWDM technology.
“The market for router-hosted pluggables is already sizeable, but it will continue to further grow as operational issues are solved and new generations of optics evolve,” said Kyle Hollasch, Lead Analyst at Cignal AI. “The uptake of IP-over-DWDM will vary significantly between Cloud Operators and traditional Service Providers, as will the preferences for the speed and module type.”
Additional IP-over-DWDM Pluggable Forecast Report Details:
Cloud Operators, predominantly the big four hyperscalers, will continue to be the driving force behind the technology and volume of pluggable coherent transceivers.
400G purchases by Cloud Operators will peak in 2026 once the adoption of 800G and 1600G begins.
The performance gap between embedded and pluggable optics will further shrink with 1600G, making IP-over-DWDM even more attractive from a network design perspective.
The rate of adoption for IP-over-DWDM will be slow and steady. Despite the operational hurdles, the technology’s space, power, and cost benefits will justify the change in architecture for many operators.
About the Report
IP-over DWDM Pluggables Forecast is part of Cignal AI’s Active Insight research service and leverages data from the Optical Components and Transport Hardware reports. This Active Insight report provides forecasts for IP-over-DWDM module deployment by operator type (Cloud, Traditional Service Provider, Enterprise and Government) and coherent module speed (400G, 800G, 1600G).
Active Insight reports provide real-time reporting on important developments in the optical market, including detailed analysis of key product trends, show reports, summaries of quarterly earnings calls, and vendor reports. This information service is provided free of charge with subscriptions to Cignal AI’s Transport Hardware Report and Optical Component Report and is also available for purchase separately. You may view the archive of reports and can enquire about purchasing Active Insight by contacting sales@cignal.ai.
About Cignal AI
Cignal AI provides active and insightful market research for the networking component and equipment market and the market’s end customers. Our work blends expertise from a variety of disciplines to create a uniquely informed perspective on the evolution of networking communications.
Contact Us/Purchase Report
Sales: sales@cignal.ai
SOURCE Cignal AI
