Integrated-optics opportunities to net $1.7 billion by 2006, says CIR

8 May 2003 Charlottesville, VA Lightwave -- The world-wide market for integrated optical products will grow to $1.7 billion in 2006, contends a new report from industry analyst firm CIR. The market for active integrated components--including products such as transceivers and transponders--is expected to grow rapidly from $205 million this year to $1.3 billion in 2006.

In late 2002, CIR issued a report that projected revenues for passive integrated components would achieve sales of only $422 million in 2006. CIR's new report, however, shows the active integrated-components business to have far more potential. While actives will account for 58% of the total $1.7-billion integrated components market in 2003, that ratio will be 75% by 2006. Transceiver and transponder modules are the greatest contributor to cost of an optical link, say CIR analysts, and this is where integration can potentially have its greatest impact. Components buyers interviewed for the report are enthusiastic about incorporating more functionality into transmission modules as a way of bringing down the cost and size. As the market moves to more complex products, the integration possibilities become more complex, more challenging, and more commercially rewarding.

With respect to hot areas to watch, the Ethernet segment should get the most benefit from integrated devices because of its use in the cost sensitive and space challenged network segments, such as the enterprise and access. CIR expects to see sales of integrated optical Ethernet transmission modules grow from about $20 million now to approximately $244 million in 2006.

For more information about the report, "Integrated Optics in Active Components: A Four-Year Forecast," visit CIR's Website at www.cir-inc.com.