Fiber-optic network equipment sales up 27% sequentially in 2Q13

Sales of equipment for fiber-optic networks surged 27% sequentially in the second quarter of 2013, driven by the health of the North American market and demand for 100-Gbps technology overall, says Infonetics Research. The market research firm plans to release the figures as part of its new second quarter 2013 (2Q13) Optical Network Hardware report August 23.

Optical transport equipment vendors sold $3.3 billion of hardware in the quarter, according to the report.

"We expected the optical hardware market to turn, particularly in North America, and that's exactly what happened in the 2nd quarter. Total optical spending is up 27% quarter-over-quarter, and the WDM equipment segment is up 21% year-over-year," explains Andrew Schmitt, principal analyst for optical at Infonetics Research. "WDM spending accelerated dramatically in North America as a result of 100G deployments hitting the ground, and worldwide spending on 100G speeds is tracking close to 15% of all optical spending. China's 100G deployments will begin in earnest as the year closes, led by China Mobile, and we're anticipating more than 5,000 ports of 100G in China alone in 2013."

However, systems houses continue to find tough sledding in Europe, the Middle East, and Africa (EMEA). That region is operating at record low levels of optical capital intensity, Infonetics asserts. While this would imply that carriers in the region will have to loosen their purse strings soon, recent positive statements from Tier 1 carriers in the region have proven to be all talk so far, Infonetics reports.

Huawei, Alcatel-Lucent, and ZTE continue to top the market share pyramid, although Alcatel-Lucent’s sales in the quarter continued a trend of year-on-year declines. Infonetics says it expects the company will do better as investments in its optical portolio increase as part of its Shift Plan (see "Alcatel-Lucent shifts and optical transport, FTTx shift with it").

Other vendors expected to see strong results include Ciena, which the market research firm sees as well positioned to benefit from the 100G spending expected this year from AT&T and Verizon, and Infinera, which has managed to buck the headwinds in Europe to become the fastest-growing supplier of optical WDM gear to that continent.

Infonetics' quarterly optical hardware report provides worldwide and regional market size, market share, forecasts through 2017, analysis, and trends for metro and long-haul SONET/SDH and WDM equipment, Ethernet optical ports, SONET/SDH/PoS ports, and WDM ports.

For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.