JULY 14, 2010 -- Optical Components (OC) globally grew 9% sequentially to $1.2 billion U.S. in 1Q10 and could have posted roughly another 7%, but was limited by supply constraints, according to the latest research from Ovum.
Ovum’s preliminary results show the OC global market to have grown 25% versus the same period last year. Supply constraint is the biggest problem plaguing suppliers, Ovum reveals. The market outlook is positive, with vendors estimating a 4% to 10% sequential quarterly growth. The market is on track for double digit annual growth, a strong rebound from the annual double digit decline in 2009.
Asia-Pacific is the strongest region with 48% of global rolling 4Q revenues, in part due to contract manufacturers in the region. Among the top 10 vendors, Finisar holds a market-leading share of 14.3%, posted a 75% year-over-year growth, and extended its market share 111 basis points on a rolling four-quarter basis. Next is Sumitomo, holding a market share of 10.8%; third is Avago Tech with a market share of 8.6%.
“This feast after famine situation for OC vendors is symptomatic of suppliers near the bottom of the food chain,” says Daryl Inniss, vice president and practice leader, Components, at Ovum. “Within 12 months, suppliers are challenged to quickly change strategies from cost and capacity cutting to survive the macroeconomic downturn to capacity constraints and accurately determine if the current demand is simply a replenishing exercise that lasts a few quarters, or a new build cycle that can be a multiyear process and may require capital investment for expansion.”