Key Factors Driving the Demand for 100G Ethernet

Driving the Demand for 100G EthernetExpansions in transmission in data center capacities have fueled the growth of Ethernet market. 100G devices will account for more than 50% of optical transceiver transmissions by 2019, having already grown 21% since 2014.

This revenue increase has led to important question: is the demand for 100G Ethernet just a hype? Or will it revolutionize the transceiver industry?

Here are some changes to the data center transmission steadily driving this market sector:

Growth in Traffic and Size

Presently, data centers use 10G and 40G Ethernet, says OptDex.com. While these technologies are sufficient for now, enterprise data and internet content providers are projected to increase in traffic and size.

Cisco Systems, Inc. projects that IP traffic will grow by 31% annually within the next five years, influenced by the rise of cloud computing and mobile device as the primary access to social media content.

More volume of data means more traffic, requiring a better data management solution. With more focus on integrated nodes and growth in higher-bandwidth speeds, 100G will become the standard for more intelligent data center structure.

10G Won’t Be Sufficient

As enterprise networks continue to grow, more and more data centers will switch to 100G. Recently, the Howard Hughes Medical Institute had the largest 100G installment in their research facility. Relying on multiple bundles of 10G would require link aggregation, which would lead to sub-optimal load balancing.

This is where 100G becomes useful. It frees up space and reduces aggregation, increasing overall efficiency. As networks continue to grow and data become more complex, 100G will provide the necessary bandwidth speeds.

CMOS Technologies Making 100G an Industry Standard

100G devices are yet to become mainstream, and Complementary Metal-Oxide-Semiconductor (CMOS) technologies are projected to make it so. Currently, switching to 100G would cost $2,500 per port, quite expensive for most enterprises.

As CMOS technology continues to improve, making these systems easier and more affordable. They will reduce size, cost and power necessary for 100G data centers, turning 100G into an industry standard.

The global optical transceiver market is expected to grow to $9.9 billion by 2020, driven by the cost effectiveness and availability of 40G, 100G, and 400G devices. Because of the widespread adoption of 100G devices, many improvements await communications infrastructure and data transmission.