Fujitsu no. 1 in key North American optical markets: Ovum

RICHARDSON, USA: Fujitsu Network Communications announced that according to data from Ovum, Fujitsu has strengthened its top position in Aggregation (MSPPs/OEDs) and achieved market leadership for Metro WDM and ROADM in North America for 2008. Together, these sectors comprise nearly 60 percent of the $4.7B optical networking market.

“By continuing to make substantial inroads at major carriers and becoming the #1 metro WDM and ROADM vendor in North America, Fujitsu is clearly the leader in 2008,” said Ron Kline, Research Director of Optical Networks: North America at Ovum. "The company posted its fifth consecutive year of growth and outperformed the market, with 2008 revenues rising 14 percent as compared to a market decline of 4 percent. Fujitsu increased its North American overall optical networking share by nearly 2.5 points, capitalizing on metro network growth and its strong incumbent positions with Tier 1 carriers, which drove metro ROADM and MSPP/OED sales."

Ovum segregates the North American optical networking market into four main segments -— Aggregation, Bandwidth management (DCS/OCS), Metro WDM, and Backbone DWDM.

Aggregation, which includes legacy ADMs, MSPPs/ OEDs, and converged non-ROADM Packet Optical systems, is the largest segment and accounts for nearly 30 percent ($1,395M) of the overall $4.7B optical networking market in North America. Fujitsu has been the leading Aggregation equipment supplier every year since Ovum began measuring this market in 2002. In 2008 the company increased its share in this segment by nearly 3 points to 31.5 percent, which is more than 10 percentage points higher than its closest competitor.

The Metro WDM segment, includes ROADM and non-ROADM DWDM equipment deployed in metropolitan and regional applications. North American spending on Metro WDM equipment in 2008 increased 11 percent year-over-year, reaching $1,358M. Ovum believes that metro WDM will become the largest North American optical networking segment in 2009. Fujitsu's metro WDM revenue grew 77 percent on strong sales of its FLASHWAVE 7500 platform, which far outpaced 2008 market growth of 11 percent. Consequently, its metro WDM market share rose nearly 8 points to 21.4 percent and placed Fujitsu in the #1 market position.

At $793M, the ROADM market is now 58 percent of the total metro WDM spending and 17 percent of the total optical networking spending, up from 14 percent in 2007. Fujitsu has 32.9 percent of the ROADM market and became the market leader with a share change of 11 points versus its nearest competitor, which gained 1 point.

“Despite the challenging economic environment, Tier 1 and Tier 2 carriers, as well as Cable/MSOs, CLECs and Enterprise customers continue to rely on Fujitsu to meet their optical networking solutions needs,” said Doug Moore, Senior Vice President of Marketing for Fujitsu Network Communications. “Fujitsu offers the right combination of market-leading MSPP and ROADM products, along with experienced employees and financial strength that position Fujitsu to continue to grow our share of the optical networking market.”

Fujitsu controls 15.5 percent of the overall optical networking market in North America. The company participates in the two largest segments, Aggregation and Metro WDM, and has the #1 market position with a 26 percent share in this combined $2,753M sector.