Global Fiber Module Market is Towards 200G/400G

200G/400G Becomes the Mainstream of Next Generation Data Center


Another predictable trend in the data center optical interconnection market is the phasing out of low-speed optical modules in core networks and data centers, with a major shift from 10G to 40G and higher 40G to 100G. The new development of 100G optical devices paves the way for 200G/400G optical devices. The next generation of data centers will deploy 200G/400G Ethernet by the end of 2018 and become the mainstream in 2019 or 2020.


Overall, the optical module market is moving towards higher speed, lower power consumption and smaller shape or size. Let’s take a look at these future-oriented optical modules.


SFP-DD small automatic pluggable double-density packaging optical module doubles the bandwidth of SFP28 or SFP56 (25G/50G), supports higher rate (50G/100G) while maintaining backward compatibility of SFP28 or SFP56.


QSFP-DD four-channel small pluggable double-density packaged optical module, defined by QSFP-DD MSA group, doubles the density of QSFP28 or QSFP56. It has eight channels with a speed of up to 25G or 50G per channel, thus supporting 200G or 400G optical transmission.


DAC and AOC seize the market by cost


DAC and AOC have the inherent advantages of enhancing signal integrity and excellent flexibility, and have become the first choice for high-speed links (such as 10G, 25G, 40G/100G and 200G/400G). This economical and efficient interconnection solution is suitable for all large-scale data center network and enterprise network applications.


DAC and AOC provide higher speed and cost efficiency, and they are witnessing tremendous growth in the data interconnection market. In 2017, more than 100,000 DAC cables were shipped in the 100G network for ultra-large data centers worldwide, and in 2018, the number of DAC cables continued to grow. Meanwhile, AOC’s global market is expected to exceed $2 billion by 2020, and sales will continue to grow substantially in the coming years.




Demand for optical modules in data centers will continue to soar. With the dramatic increase of Internet traffic driving the optical module market to change, we can still expect to deploy 10G, 25G, 40G and 100G Ethernet in large data centers and 200G/400G in the next generation cloud data centers to stimulate market growth. Moreover, low-cost and low-power DAC and AOC based on optical module design are also growing significantly in the application of short-distance high-speed interconnection. Therefore, there are still great opportunities in the optical module market.

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