Optical long haul recovers in 2005 with 32% gain
2 March 2006
Worldwide optical revenue increased 19% between2004 and 2005, to $10.7 billion, driven by strong growth in the metroequipment segment (up 15%) and the long haul segment (up 32%), according toInfonetics Research's quarterly Optical Network Hardware report.
"2005 was the first time we've seen a gain in the optical long haul segmentsince 2001, a good sign that carriers realize that investing in today'slong haul equipment will save them money in the long run throughoperational returns," said Michael Howard, principal analyst at InfoneticsResearch. "The new long haul WDM equipment provides greater efficienciesthrough ROADMs and other advanced features, enabling carriers to addresscompetitive pressures, rising broadband traffic, and IPTV opportunities. Asmore carriers upgrade their networks, we'll see steady growth in theoptical market at least through 2009."
Although the long haul segment is improving, the bulk of spending continuesto be in metro optical equipment, which made up 71% of all optical networkhardware revenue in 2005, compared to long haul's 29%. This 70:30 ratiowill remain about the same through 2009, as increased corporate networktraffic, storage networking, consumer broadband demands for services suchas IPTV, and service provider wireless network backhaul investmentscontinue driving metro spending.
More Highlights
-- Optical network hardware revenue was up 10% to $3.0 billion between 3Q05 and 4Q05, fueled by gains by Adva, Alcatel, Ciena, Corrigent, ECI, Huawei, Siemens, Tellabs, and others; Cisco, Fujitsu, and NEC were down for the quarter
-- Alcatel continues in first position for worldwide optical network hardware revenue share in 2005, followed by Nortel, Huawei, Fujitsu, and Lucent
-- In 2005, WDM hardware made up 32% of total optical revenue and will increase to 40% in 2009; WDM ROADM switch hardware made up 19% of WDM revenue and will increase to 37% in 2009
-- North America accounted for 32% of total optical network hardware revenue, EMEA for 33%, Asia Pacific 29%, and CALA 6% in 2005
Infonetics' report tracks metro and long haul SONET/SDH, WDM transport,and WDM switch (broken out by ROADM and non-ROADM) hardware. Forecasts andregional market share are updated quarterly and cover all regions.
Highlighted Links Infonetics Research
Infonetics Research Portal
ADTRAN, ADVA, Alcatel, Ciena, Cisco, Corrigent, ECI Telecom, Fujitsu,Huawei, Infinera, Lucent, Marconi, Meriton, Movaz, NEC, Nortel, Siemens,Tellabs, Transmode, Tropic, Turin, Zhone, ZTE, and others are tracked inthe report.
Download sample data at www.info.infonetics.com. For sales, contact LarryHoward, vice president, at larry@infonetics.com or +1 (408) 583-3335.
Infonetics Research (www.infonetics.com) is the premier internationalmarket research and consulting firm specializing in data networking andtelecom, providing a complete view of the market through constantinteraction with equipment manufacturers, service providers, end-users,chip and component manufacturers, sales channels, and the financialcommunity. Services include quarterly market share and forecasting,end-user survey research, service provider survey research, and serviceprovider capex analysis.
Press Contact:Michael HowardPrincipal Analyst, Co-FounderInfonetics Research+1 (408) 583-3351Email Contact
SOURCE: Infonetics Research
Source: marketwire
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