Ovum expects 2013 optical component sales to bounce back

After a 3% decline in 2012, the global market for optical components (OCs) will see a modest rebound in 2013, Ovum predicts in its new Market Share Alert: 4Q12 and 2012 Global OC. The market research firm says component sales this year should see a 4% improvement over the $6.3 billion the market achieved last year.

After a 3% decline in 2012, the global market for optical components (OCs) will see a modest rebound in 2013, Ovum predicts in its new Market Share Alert: 4Q12 and 2012 Global OC. The market research firm says component sales this year should see a 4% improvement over the $6.3 billion the market achieved last year.

Capacity constraints caused by the Thai floods and the dampening effects of macroeconomic uncertainty contributed to last year’s poor showing, Ovum asserts. This weakness should continue into the first quarter of this year, but the market should rally after that.

The new interest in 100 Gbps will prove a primary catalyst. “Vendors have good reason to be cautiously optimistic about 2013, as Ovum believes demand for 100G transmission gear will enter mainstream,” said Daryl Inniss, practice leader components telecoms at Ovum and author of the market share alert. ”Multiple component vendors introduced products like coherent 100G DWDM transponders in anticipation.”

Higher data rates for datacom applications, such as 16G Fibre Channel for storage and 40 Gigabit Ethernet, should spur demand for QSFP form factor optical transceivers as well. “Many of these products will blossom into the mainstream market in 2013, providing the boost that OC needs to start churning positive revenues again,” Inniss added.

Several vendors got a head start on these trends last year. WTD, Fujitsu Optical Components, CyOptics, and NeoPhotonics saw the strongest 2012 market share gains among the top 10 suppliers, led by sales of transceivers and telecom discrete components for 40 and 100 Gbps.

“Although the outlook for 1Q13 is for low single digit contraction, partly due to annual price declines that take affect after the first quarter of the year. Ovum expects the OC market to expand 4% in 2013, in part, to support the continuing annual double digit traffic growth,” Inniss concluded.

For more information on optical components and suppliers, visit the Lightwave Buyer’s Guide.

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