Global deployment of networking ports is surging higher amidst expanding broadband network connectivity and consumer demand. Higher speed options are seeing particularly strong growth, with 100G port shipments doubling in 2015, according to new research from IHS Markit Technology.
Collectively, shipments of 1, 2.5, 10, 25, 40 and 100 Gbps network ports jumped 32 percent year-over-year (YoY) in 2015 to total 743 million. Market revenue rose six percent to $46 billion as network traffic continued to increase and service providers proceeded to upgrade network equipment, IHS Markit analysts elaborate in a Dec. 1 research note.
Looking ahead, IHS Markit expects average annual networking ports revenue will increase an average three percent annually through 2020. Alone among networking port technology options, global 1 Gbps port revenue will decline over the period, having peaked in 2015.
Investments to accommodate growing network demand on the part of service providers and enterprise-scale businesses will support the rising trend moving forward, driven by services and applications requiring low latency and high bandwidth.
100G Port Shipments
In recent years, 1 Gbps ports have accounted for the majority of deployments, while 10 Gbps ports have accounted for the bulk of revenues. Both segments are maturing, however, and overall growth increasingly is driven by deployment of 2.5 Gbps, 40 Gbps and 100 Gbps ports. Deployment of 100 Gbps ports almost doubled in 2015 as service providers began migrating from 10 Gbps ports.
The resulting drop in demand for 40 Gbps ports was more than offset by shipments into the data center market, however. IHS Markit expects this to continue through 2017 when data center providers make a wholesale transition to 100 Gbps ports as well.
More broadly, IHS Markit analysts expect that high-speed networking ports (10 Gbps and higher) deployment and revenue growth will pick up from 2015’s 46 million and $26.7 billion, respectively. They predict the number of high-speed networking ports will exceed 154 million and revenue will grow at an eight percent CAGR from 2015-2020 to reach $39 billion.