Disaggregation and ZR Optic Technology to Drive Market Growth Through the End of the Decade
INCLINE VILLAGE, NEV. Jan. 10, 2024 — According to a newly released report issued by founding analysts of 650 Group, the SP Routing market is currently in a correction period as Service Providers (SP) work through excess inventory they purchased during long lead times after the pandemic. Still, the market is expected to return to growth after, led by 400 and 800 Gbps port growth and increased adoption of disaggregated solutions and ZR/ZR+ deployments.
The report indicates that many customers are transitioning to a digestive phase and delaying future orders. This is occuring as the first and second half seasonality in 2024 will change as the supply chain eases and customers digest equipment purchases. 650 Group also reveals that the ramp in 400 Gbps Router platforms based on 56 Gbps SERDES in addition to next-generation 800 Gbps Router platforms based on 112 Gbps SERDES will become significant revenue contributors. The report also indicates the regional trends impacting China, North America, and Europe, where vendor performance remains very different from other regions based on the supply chain, the trade war, and project timing.
“The SP Routing market is going through back-to-back upgrade cycles to 400 Gbps and 800 Gbps as factor such as Cloud and SP demand for bandwidth are driving a rapid pace of innovation,” said Alan Weckel, a founding analyst for 650 Group. “Cisco, Juniper, and Nokia all have made next-generation 800 Gbps announcements that will drive adoption in higher speeds and DCI using ZR/ZR+ optics. Service Providers have a significant interest in deploying ZR and ZR+ in their networks since they allow for the convergence of the edge optical layer into the routing platform.”
About 650 Group
650 Group is a leading Market Intelligence Research firm for communications, data center, and cloud markets. Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies. 650 Group focuses on leading-edge market trends and research and prides itself on first-to-market research with over ten research programs focused on SP and Cloud trends.