Infonetics Research released vendor market share and preliminary analysis from its 2nd quarter 2014 (2Q14) Optical Network Hardware report. (Full report published by August 25.). Kim Peinado, VP Marketing at Infonetics wrote in an email: “While our headline focuses on Internet Content Providers boosting North America’s growth this quarter, Asia had an even bigger spike, led by Huawei and ZTE, which helped the global market offset year-over-year declines in other regions (see notes in the bullet points of the release).”
OPTICAL MARKET HIGHLIGHTS:
- In North America, internet content providers (ICPs) such as Google and others generated a wave of optical spending at a handful of vendors including Adva, BTI, and Infinera, altogether accounting for an estimated $40 million surge in 2Q14
- Worldwide optical network hardware revenue, including SONET/SDH and WDM, totaled $3.3 billion in 2Q14, a sequential gain of 27% aided by strong seasonal performances from Huawei and ZTE
- Global optical spending is roughly flat year-over-year (2Q14 from 2Q13) as strength in Asia Pacific offset weakening spending trends in EMEA
- Worldwide WDM equipment revenue in 2Q14 is up 6% year-over-year
- The 1st half of 2014 brought another huge flood of 100G WDM shipments by Alcatel-Lucent, Ciena, Cisco, Huawei, and Infinera
- Ciena’s and Infinera’s North American optical revenue grew rapidly on a year-over-year basis in 2Q14, while Fujitsu’s and Alcatel-Lucent’s decreased
OPTICAL ANALYST COMMENT:
“While the term ‘tier-1’ is traditionally associated with the incumbent operators of Europe and RBOCs in North America, it is now qualitatively clear that tier-1 spending growth is coming from the competitive dark fiber and internet exchange carriers. These carriers, as well as vertically-integrated internet content providers (ICPs), provide a growing portion of core internet connectivity and intra-datacenter capacity,” notes Andrew Schmitt, principal analyst for carrier transport networking at Infonetics Research.
OPTICAL ANALYST CONFERENCE CALL FOR CLIENTS:
Clients, log in to join Andrew Schmitt Sept. 5 at 9:00 a.m. PDT for his live optical hardware market recap and outlook, or view on-demand: www.infonetics.com/cgp/login.asp?id=874.
ABOUT THE OPTICAL REPORT
Infonetics’ quarterly optical hardware report provides worldwide and regional market size, market share, forecasts through 2018, 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: Adtran, Adva, Alcatel-Lucent, Ciena, Cisco, Coriant, Cyan, ECI, Fujitsu, Huawei, Infinera, NEC, Padtec, Transmode, Tyco Telecom, ZTE, and others.
Related news article: Telstra Picks Ericsson, Ciena for Optical, SDN/NFV