Optical-network hardware surpasses $9 billion worldwide

June 1, 2005
Worldwide optical-network hardware revenue grew 21% between the third and fourth quarters of last year to $2.6 billion, reveals a report from Infonetics Research (San Jose, CA). The report says Alcatel, Cisco Systems, Lucent Technologies, Marconi, and Nortel Networks all had strong quarters, spurred by some help from service-provider “capex flush.” Worldwide revenue grew 10% to $9 billion between 2003 and ’04, with steady growth projected through 2008.

The market for metro WDM optical equipment was particularly robust, with worldwide revenue topping $380 million in the fourth quarter, a 30% increase from the third quarter. Alcatel remained the leader in worldwide revenue market share for total optical-network hardware, followed by Nortel, Huawei, and Fujitsu. Nortel and Tellabs led in North America, Alcatel led in EMEA, and Huawei led in Asia-Pacific.

Also, metro equipment made up 74% of all optical-network hardware revenue. SONET/SDH comprised 69% of optical equipment sales in the fourth quarter, 85% of which was metro SONET/SDH. During 2004, long-haul market fell 13%, with long-haul SONET/SDH down 16% and long-haul WDM down 10%. WDM and intelligent SONET/SDH are expected to grow slowly this year due to better business conditions and pressures to reduce opex, creating new investment in optical products.

The report says service providers are depending more on CWDM/DWDM and are building more metro access rings; ROADM technology will further facilitate this trend.

For more details on the report, “Optical Network Hardware,” visit www.infonetics.com.

Sponsored Recommendations

New Optical Wavelength Service Trends

July 1, 2024
Discover how optical wavelength services are reshaping the telecom landscape, driven by rapid expansion and adoption of high-speed connections exceeding 100 Gbps, championed by...

Data Center Interconnection

June 18, 2024
Join us for an interactive discussion on the growing data center interconnection market. Learn about the role of coherent pluggable optics, new connectivity technologies, and ...

ON TOPIC: Innovation in Optical Components

July 2, 2024
Lightwave’s latest on-topic eBook, sponsored by Anritsu, will address innovation in optical components. The eBook looks at various topics, including PCIe (Peripheral...

AI’s magic networking moment

March 6, 2024
Dive into the forefront of technological evolution with our exclusive webinar, where industry giants discuss the transformative impact of AI on the optical and networking sector...