IHS Infonetics: Optical Network Spending Increases; Data Centers & Japan Bullish on 100G

IHS Infonetics just reported that global optical network hardware spending was up 5% in the first quarter of 2015 (1Q15) from year ago as signs of improvement continued to emerge in EMEA (Europe, the Middle East and Africa) and as Japan prepares for a large-scale 100G rollout.

OPTICAL NETWORK MARKET HIGHLIGHTS:

  • The worldwide optical network equipment market, including WDM and SONET/SDH, totaled $2.7 billion in 1Q15.
  • With 2 consecutive quarters of year-over-year growth under its belt, Europe appears to be exiting an optical slump; results in the region are better than the headline numbers due to the strengthening dollar.
  • The company outperforming in Europe is Alcatel-Lucent, with a steady trend of rising revenue.
  • WDM revenue rose 9 percent globally in 1Q15 from the previous quarter, putting up an 11th consecutive quarter of growth.
  • 100G spending is rapidly increasing worldwide and comprises around a quarter of total WDM revenue, which is flowing primarily into the hands of Alcatel Lucent, Ciena, Cisco, Huawei and Infinera.
  • Internet content providers (ICPs) continue to surge and presently account for roughly one-tenth of North American optical spending, though volatility in future expenditures is likely.

 


Anaylst Quote:

“The focus in optical networking is now shifting to the metro as new products targeted specifically at this market are announced and scheduled for production. This will allow datacenters and traditional service providers to more rapidly adopt metro 100G in a significant way,” said Andrew Schmitt, research director for carrier transport networking at IHS.  

“Meanwhile, the service provider market is fracturing into two factions-the telcos and webcos-each with specific optical transport needs and requirements. Webco spending is growing faster right now, so vendors are repositioning to align roadmaps and marketing with their needs,” Schmitt said.



 

OPTICAL NETWORK REPORT SYNOPSIS:

The quarterly IHS Infonetics Optical Network Hardware market research report tracks and forecasts the global optical equipment market. The research service provides worldwide and regional market size, vendor market share, forecasts through 2019, analysis and trends for metro and long haul SONET/SDH and WDM equipment, Ethernet optical ports, SONET/SDH/POS ports and WDM ports. Vendors tracked include Adtran, Adva, Alcatel-Lucent, Ciena, Cisco, Coriant, Cyan, ECI, Fujitsu, Huawei, Infinera, NEC, Padtec, Transmode, TE Connectivity, Tyco Telecom, ZTE, others.

To purchase the report, please visit: www.infonetics.com/contact.asp

RELATED RESEARCH:

Packet-Optical Transport Deployments Slower Than Anticipated:
http://www.infonetics.com/pr/2015/Packet-Optical-Survey-Highlights.asp

In Data Center Optics Market, 40G Transceivers Ubiquitous, 100G Accelerating: 
http://www.infonetics.com/pr/2015/2H14-Data-Center-Optics-Mkt-Highlights.asp

In Telecom Optics Market, 100G Transceiver Growth Suppressed Until 2016: 
http://www.infonetics.com/pr/2015/2H14-Data-Center-Optics-Mkt-Highlights.asp 

OTN Switch Spending Up 40 Percent from a Year Ago: 
http://www.infonetics.com/market-research-report-highlights.asp 


About IHS (www.ihs.com):

IHS (NYSE: IHS) is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.


In a related report, Dell’Oro Group said the Optical Transport equipment market reached $2.8 billion in the first quarter of 2015.  The majority of the optical market’s growth was due to the continuous need for more wavelength division multiplexers (WDM). In the quarter, the total WDM market, which comprises 76 percent of the optical market’s revenue, grew five percent year-over-year.

“One of the main drivers for WDM equipment demand is the interconnection of data centers, which are on the rise as users increase their consumption of content such as video,” said Jimmy Yu, Vice President of Optical Transport research at Dell’Oro Group. “Of greater interest in the optical market is the changing customer type, as more of these data center interconnects (DCI) are purchased directly by the enterprise rather than as a service from an operator. We believe approximately 12 percent of WDM revenues in the first quarter were generated from data center interconnection, purchased directly by enterprise customers,” added Mr. Yu.

About the Report  
The Dell’Oro Group Optical Transport Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, unit shipments (by speed including 40 Gbps, 100 Gbps, and >100 Gbps).  The report tracks DWDM long haul terrestrial, WDM metro, multiservice multiplexers (SONET/SDH), optical switch, and optical packet platforms. 

To purchase this report, call Matt Dear at +1.650.622.9400 x233 or email Matt@DellOro.com.

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