Networking port sales hit $39bn

Datacentre boom and core expansion ramps up sales of faster ports

Sales of networking ports are continuing to enjoy growth worldwide, as organisations scramble to cope with the expansion in data traffic.

Figures from US market research company Infonetics reveal that demand for 1G, 10G, 40G and 100G optical and Ethernet networking ports around the globe expanded five per cent to $39bn (£23.2bn) in 2013, compared with 2012.

Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics, said all types of port continued to sell well last year.

"Enterprises and service providers invested in their networks to accommodate the growth in traffic, and revenue growth accelerated as buyers shifted to higher bandwidth and more expensive ports," he said.

Service provider port revenue grew four per cent in the year, and service providers are moving from 40G to 100G now. The 1G category comprised the lion's share of network port sales in volume terms, but the greatest revenue share comes from the 10G segment. Revenue growth is also coming from the emerging 40G and 100G segments.

The 40G segment is doing well within the datacentre, and saw shipments more than double, according to Infonetics' figures.

During the year, the first 100G enterprise ports began shipping, but they are not expected to become a "major factor" until 2015.

Andrew Schmitt, principal analyst for optical at Infonetics, said: "Coherent 100G is well on its way to completely taking over the core, growing to nearly 80 per cent of all wavelengths by 2016 – effectively shutting down competing 10G and 40G deployments."

Infonetics' biannual networking ports report tracks revenue, shipments, and pricing.