Thanks Bikeman, jibes very well with last year's Yole report, indicating that market will grow to ~$17B from $7B.  http://www.yole.fr/Optical_Transceivers_IndustryOverview.aspx

A few points from the report you've quoted today.

“Optical transceivers supporting data rate 41 Gbps to 100 Gbps is expected to grow at the highest CAGR during the forecast period”

Despite the hype and popularity of the move to 400 & 800G, it appears the 100G market will continue to grow.  Even through 2026, 100G units will still outnumber everything else combined.  Now let’s consider how POET is positioned for the 100G market:

·        Once in commercial production, POET has stated they have a virtual lock on the entire 100G LR4 market.

·        Overall, we understand that there is such fierce competition in the 100G market, transceiver suppliers are working on razor thin margins.  I believe David Lazovsky once stated: “they are in pain”.  Point being, at 20-40% lower module costs, anyone using the POET OE will easily be able to undercut the competition.  So, if you don’t have POET, you may not be in the 100G business very long.

I’m not saying POET will lock up the entire 100G market by 2025, but IMO they are very well positioned to take a serious and significant piece of the action.  And, once they establish themselves in 100/200G, they could manage to do the very same with the maturing 400/800G markets as well.  Translation: they don’t have to be first to 400/800G, they just have to be most cost effective and energy efficient when they do get there.

“APAC is expected to adopt optical transceivers at the fastest rate. Developing countries such as China, South Korea, and Taiwan are expected to have a high potential for the future growth of the market.”

Highest growth expected in China and SE Asia, enough said.  Mike-drop Super Photonics Xiamen!