REDWOOD CITY, USA: According to a newly published report by Dell’Oro Group, the trusted source for market information about the networking and telecom industries, the worldwide optical market grew 11 percent quarter-over-quarter (Q/Q) in the second quarter this year.
The Asia Pacific region contributed most of this sequential growth and was the largest region contributing nearly 40 percent of the worldwide revenues in the quarter.
“An 11 percent growth following a near historic sequential decline in the first quarter of the year gives me confidence that the worst may be over for the optical equipment market,” said Jimmy Yu, Director of Optical Transport research at Dell’Oro Group.
“My only reservation is that, although each region experienced slight growth, the growth was predominantly driven by Asia Pacific which grew nearly 25 percent sequentially. Additionally, I estimate that it was revenue from China that contributed almost all of this region’s growth, so a good deal of the optical market’s recovery is dependent on China’s continued strength as the other regions recover,” Yu added.
Huawei and ZTE benefited from the optical sales growth in China, increasing their worldwide market shares.
Showing posts with label Optical transport equipment market. Show all posts
Showing posts with label Optical transport equipment market. Show all posts
Thursday, August 20, 2009
Tuesday, August 11, 2009
Spending in China propels Huawei to near tie with Alcatel-Lucent
UK: Ovum today announced its preliminary 2Q09 results for global optical equipment networking vendors. The global optical networking (ON) market, led by strength in Asia-Pacific markets, was $3.9 billion, up 11 percent sequentially, but down 9 percent compared with 2Q08.
“This marks the third consecutive quarter that the ON market has shrunk compared with the year-ago quarter, but given the global economic conditions we were not surprised,” remarked Ron Kline, Ovum’s Research Director, Optical Networking.
“Spending in Asia-Pacific remained surprisingly strong, driven by 3G network builds in China. The level of spending we’re seeing in China has disproportionally benefitted Huawei and ZTE, adding over a share point each to their market positions, and has brought Huawei to the verge of market leadership, an event we think very likely for 3Q09.”
Top 10 ON vendor share
Of the top 10 vendors, only Huawei and ZTE posted both sequential and year-over-year revenue gains, reflecting the surge in spending in their home market.
Alcatel-Lucent and Ericsson posted sequential revenue gains but were still off 22 percent and 18 percent from the year-ago period, while Ciena, Fujitsu, NEC, Nokia Siemens, Nortel, and Tellabs all declined sequentially and year over year. Huawei and ZTE grew revenues by 21 percent and 62 percent, respectively, over 2Q08 due to 3G mobile-related aggregation spending in China.
“Alcatel-Lucent held on to the market lead with 20.7 percent annualized share, but Huawei picked up 1.4 percentage points to come within just 0.2 points of the market leader at 20.5 percent share,” said Kline.
“Given the continued strength of spending in China where Huawei is strong, favorable exchange rates, light exposure to North America, and access to capital, it’s only a matter of time before we have a new market leader.”
“This marks the third consecutive quarter that the ON market has shrunk compared with the year-ago quarter, but given the global economic conditions we were not surprised,” remarked Ron Kline, Ovum’s Research Director, Optical Networking.
“Spending in Asia-Pacific remained surprisingly strong, driven by 3G network builds in China. The level of spending we’re seeing in China has disproportionally benefitted Huawei and ZTE, adding over a share point each to their market positions, and has brought Huawei to the verge of market leadership, an event we think very likely for 3Q09.”
Top 10 ON vendor share
Of the top 10 vendors, only Huawei and ZTE posted both sequential and year-over-year revenue gains, reflecting the surge in spending in their home market.
Alcatel-Lucent and Ericsson posted sequential revenue gains but were still off 22 percent and 18 percent from the year-ago period, while Ciena, Fujitsu, NEC, Nokia Siemens, Nortel, and Tellabs all declined sequentially and year over year. Huawei and ZTE grew revenues by 21 percent and 62 percent, respectively, over 2Q08 due to 3G mobile-related aggregation spending in China.
“Alcatel-Lucent held on to the market lead with 20.7 percent annualized share, but Huawei picked up 1.4 percentage points to come within just 0.2 points of the market leader at 20.5 percent share,” said Kline.
“Given the continued strength of spending in China where Huawei is strong, favorable exchange rates, light exposure to North America, and access to capital, it’s only a matter of time before we have a new market leader.”
Friday, July 31, 2009
Optical transport equipment market to reach $15 billion in 2013
REDWOOD CITY, USA: In a newly released forecast report by Dell'Oro Group, the global optical transport equipment revenues are forecast to resume growth in 2010 and approach a market size of $15 billion by 2013.
The report also indicates that 40 Gbps wavelengths will likely account for nearly half of the DWDM long haul capacity shipments in 2013.
“We forecast optical transport equipment revenues to decline slightly more than 10 percent in 2009, but the market should recover in 2010 with increasing consumer demand for faster access speeds in homes and mobile phones,” said Jimmy Yu, Director of Optical Transport research at Dell'Oro Group.
“The optical equipment segments that should return to positive growth first are the metro systems -- WDM metro and SONET/SDH multiplexers. The long haul capacity to support consumer demand is expected to expand with increasing deployments of 40 Gbps and 100 Gbps wavelengths on DWDM long haul systems.
"Even as the overall DWDM long haul market is in a period of a cyclical decline, 40 Gbps wavelength shipments are expected to continue growing and contribute almost half of long haul capacity shipments by 2013,” added Yu.
The report also indicates that 40 Gbps wavelengths will likely account for nearly half of the DWDM long haul capacity shipments in 2013.
“We forecast optical transport equipment revenues to decline slightly more than 10 percent in 2009, but the market should recover in 2010 with increasing consumer demand for faster access speeds in homes and mobile phones,” said Jimmy Yu, Director of Optical Transport research at Dell'Oro Group.
“The optical equipment segments that should return to positive growth first are the metro systems -- WDM metro and SONET/SDH multiplexers. The long haul capacity to support consumer demand is expected to expand with increasing deployments of 40 Gbps and 100 Gbps wavelengths on DWDM long haul systems.
"Even as the overall DWDM long haul market is in a period of a cyclical decline, 40 Gbps wavelength shipments are expected to continue growing and contribute almost half of long haul capacity shipments by 2013,” added Yu.
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