Fiber-optic installation apparatus market growth to average 15% per year through 2007

Fiber-optic installation apparatus market growth to average 15% per year through 2007

North America`s consumption of fiber-optic installation apparatus will multiply by more than four times, from $1.26 billion in 1997 to $5.26 billion in 2007, reports a recently released forecast by ElectroniCast Corp. (San Mateo, CA). According to the report, Fiber-Optic Installation Apparatus Forecast, the average growth will be 15% per year across the decade.

This growth is being driven by expansion of fiber-optic deployment by cable-television and private data network administrators, along with a shift to telecommunications feeder and distribution cable and associated rapid expansion of outside-plant apparatus deployment. Premises data networks lead the market share of apparatus consumption with 44% in 1997, followed closely by telecommunications with 39%. ElectroniCast believes the data networks` lead is due to the substantial use of inside-plant and campus fiber-optic cable, compared to the lower-quality annual inside-plant cable deployment for telecommunications.

Cable-TV consumption is expected to increase over the next decade, yet the market share will remain flat, going from 14% to 13%, while telecommunications declines to a 27% share. The military and aerospace share will remain relatively constant, going from 3% in 1997 to 2% in 2007.

Outside-plant installation apparatus consumption will climb steadily, led by below-grade connection boxes, including semi-buried boxes. Both segments of the outside-plant apparatus market--cable splice closures and cable management (crossconnect) systems--provide the interconnection point for various fiber-optic cables. The main difference is that cable splice closures serve relatively permanent interconnections and incorporate fewer connectorized interconnections. Cable-management systems, conversely, are designed for easy access for modifications and incorporate a much higher percentage of connectorized interconnect and crossconnect. There is a trend toward incorporation of connectorized interconnect, splitters, and easier re-entry units in the splice-closure segment. The trend in cable-management systems is toward incorporating optoelectronics and electronics in the same enclosure, designated an optical network unit.

Inside-plant consumption in North America for all applications will expand from $1.13 billion in 1997 to $2.48 billion in 2002. Premises data network applications held a 50% share of this market, $559 million, in 1997.

With the increasing complexity of network products and standards, users need a lot of advice on how to structure networks in terms of cost and scaleability. Installation apparatus manufacturers, to meet this need, are offering a complete line of products as well as engineer-furnish-install contracts.

As a result of competitive pressures, manufacturers are caught between reducing cost and meeting Bellcore standards, traditionally critical to telephone companies. Users are increasingly demanding lower-cost cable apparatus, forcing manufacturers to redesign products without sacrificing performance. The focus is moving toward higher-density, smaller units, and lower-cost manufacturing processes.

Achieving a consensus on manufacturer and user definitions of fiber-optic apparatus is difficult, and in ElectroniCast`s report, the following is excluded from the definition: telecommunications/cable-TV outside-plant cable/connector/splice not housed in enclosed, protected environments; inside/outside-plant mechanical splices; overhead cable trays used for general support and neatness; premises communications wall outlets; and all optoelectronics and electronics, test equipment, and splicing tools. Included in ElectroniCast`s definitions are inside-plant and premises data campus interconnect cables at their assembled value level and patch/cross panels and distribution frames/cabinets at their as-delivered value.

The complete forecast is available from ElectroniCast for $6500 by calling (650) 343-1398 or e-mail: [email protected]. u