Ovum: Optical networking market gains in second quarter

Market research firm Ovum says the global optical networking (ON) market is almost halfway back to its pre-recession peak thanks to a robust second quarter of 2011. According to Ovum’s recently released Market Share Alert: 2Q11 Global ON, ON equipment spending totalled $4.1 billion, up 16 percent sequentially and 17 percent when compared to the same quarter last year.

Market research firm Ovum says the global optical networking (ON) market is almost halfway back to its pre-recession peak thanks to a robust second quarter of 2011. According to Ovum’s recently released Market Share Alert: 2Q11 Global ON, ON equipment spending totalled $4.1 billion, up 16 percent sequentially and 17 percent when compared to the same quarter last year.

On an annualized basis, the market jumped 8 percent versus the second quarter of 2010, hitting $15.3 billion.

“This performance marks the second sequential quarter of annualized gains and puts the market almost exactly halfway back to its pre-recession peak of $16.6 billion, posted in the third quarter of 2008,” said Dana Cooperson, vice president of Ovum’s network infrastructure practice.

Sales percentage in South and Central American market grew the most among regions of the world, hopping 31 percent sequentially at $267 million. However, the Europe, Middle East, and Africa (EMEA) contributed more to the total market growth, up 25 percent sequentially (38 percent year-on-year) at $1.17 billion.

Added Cooperson, “In North America, the market grew 18 percent when compared to the second quarter of 2010 to top $1 billion for the fourth straight quarter. Only Asia-Pacific did not grow when compared to quarter two of 2010, with spending remaining at $1.4 billion.”

Among systems suppliers, Huawei regained the top spot for the quarter, with $900 million and 22.7 percent share -- up more than 60 percent over the previous quarter. Annualized share declined substantially, however. Conversely, fellow Chinese vendor ZTE recorded its best quarter ever with revenue just over $500 million, good enough for third in terms of market share. This represented an annualized increase of 45 percent versus second quarter of 2010, the biggest annualized share gain among the top 10 vendors.

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