The global LAN/premises data network interconnect cable consumption in 2000 was $3.7 billion, according to a new market study by ElectroniCast Corporation. The consumption value will increase at an annual growth rate of 18.7 percent per year over the next five years to $8.7 billion in 2005, with strongly rising quantity growth partially offset by declining average prices. Over the 2005-2010 period, the consumption value growth will reach $18.2 billion.
North America led in global consumption of LAN/premises private data network fiber optic interconnect cable with 45.9 percent, or $1.7 billion, in 2000 and will expand in value to $7.8 billion by 2010. "North American consumption will be driven by the continuing trend to higher data rate input/output per machine, growing complexity and increasing node counts of LANs and physical distance expansion of LANs (larger campuses)," according to Peter T. Jewett, a senior research analyst at the market consultancy. "European consumption, 37.2 percent by 2005, will be led by the European Union member states as they transition. The fastest growth in LAN/premises private data network interconnect cable consumption will occur in South America and the Rest of World regions stimulated by favorable national economic policies and the trend toward higher network bandwidth requirements," Jewett said.
The global consumption of fiber optic cable in LAN/premises data networks in the year 2000 was at $2.09 billion. This will grow rapidly, averaging 21.3 percent per year, to $5.4 billion in 2005, and is expected continue to $14 billion by 2010.
Global singlemode cable use will grow from $632 million in 2000 to $3.7 billion by 2010. The consumption of singlemode cables is dominated by telecom networks. Private LAN/WAN use of singlemode cables will be limited to relatively longer backbone links and campus wide networks.
Multimode cable use, dominated by North America, will grow at an average annual rate of 21.4 percent from $1.4 billion in 2000 to $3.85 billion by 2005. "North America's share is significantly higher compared to other world regions, due to an earlier start of fiber optics use in premises LANs and the subsequent rapid expansion," according to Dan Steinbaugh a research analyst at ElectroniCast. "Easy to install, cost efficient small form factor multifiber connectors and quantum well vertical cavity surface emitting laser diodes (VCSELDs), will help stimulate fiber deployment to the desk," Mr. Steinbaugh said.
About ElectroniCast Corporation:
Founded in 1981, ElectroniCast is a technology-based independent forecasting firm for the fiber optic, optoelectronic, and photonic industries. This includes technology forecasting, markets and applications forecasting, strategic planning, competitive analysis, and marketing/sales consultation.