The global market for 800 Gbps switching and routing, including the DCI use case, will exceed $10 billion in revenue by 2025, according to a new report published by 650 Group titled ‘800 Gbps Forecast 2020-2025.’
800 Gbps allows Ethernet switches and routers to take on additional DCI use cases with pluggable markets increasing the revenue opportunity compared to previous speeds.
ASIC vendors, OEMs, ODMs, and pluggable module companies would need to find their niche in a market that the hyperscalers will increasingly dominate.
Battle for the Edge
According to 650 Group, the 2025 cloud market will see a fight in demand for speed and power and at the same time, a battle for the edge between hyperscalers, traditional telco providers, colocation data center operators, and enterprises.
While 400 Gbps will start some of these trends, 800 Gbps will have a higher revenue opportunity over the long term.
“800 Gbps will be a critical technology and drive a robust ecosystem of suppliers in the Ethernet switch and routing markets,” said Alan Weckel, Founding Technology Analyst at 650 Group. “ASICs continue to push the technology envelope to meet the needs for bandwidth from the hyperscalers and support the applications we use each day. 800 Gbps saves a tremendous amount of power per bit of traffic, and the newer technologies that go into this speed have widespread application for the remainder of the decade.”
Vendors mentioned in the report include Arista Networks, Broadcom, Cisco Systems, Dell, Huawei, Innovium, Intel, Juniper Networks, Marvell, Nokia, Nvidia, and many white box manufacturers.
The report also discusses the impact of ZR/ZR+, 112 Gbps/224 Gbps SERDES, and different optical speeds. It also discusses the impacts that those technologies will have on the migration to higher speeds and their potential applications for co-packaging, onboard optics, and photonics.
650 Group is a market intelligence research firm for communications, data center, and cloud markets. Its team of analysts has decades of research experience. They have worked in the technology industry themselves and are actively involved in standards bodies.