A new report released by telecom market research firm RHK Inc., shows that the market for Asia-Pacific Optical Transport, including shipments for WDM, SDH/SONET, and DCS equipment, will reach $6.2 billion in 2001 -- growing 57 percent from the $3.9 billion spent in 2000. Continued deregulation in markets such as China and India, strong demand for fixed and wireless data services, and increased Internet penetration will be key in driving this market to $14.8 billion by 2004 according to RHK.
"Despite concerns about the health of the North American telecom market, the fundamentals for growth in the Asia-Pacific region remain strong," states Matt Walker, RHK's Regional Director for Asia-Pacific. "We do find Asia-Pacific is not immune from the global turmoil, and pricing pressure on network gear has spilled over to the region. Yet our research continues to demonstrate that the Asia-Pacific market remains a significant opportunity for vendors and service providers alike. Continued deregulation in the region, restrictions on new carriers' entry into the market, and avoidance of the major debt burden experienced in North America and Europe are a few key elements supporting this growth."
RHK finds the WDM segment to be the fastest growing area of the Asia-Pacific terrestrial optical transport market, expected to reach $1.4 billion in 2001. Leading the WDM market is Lucent, which led the WDM market in 2000 with a 33percent share, followed by Nortel with 11 percent.
As the second fastest growing sector, SDH/SONET equipment sales are expected to reach almost $4.3 billion by 2001. Fujitsu, which led SDH/SONET in 2000 with 19percent market share, continues to lead the market, along with Huawei and NEC.
"Across the Asia-Pacific region, the players differ in each market," states Walker. "In China, local suppliers are major players. But in places such as Japan, traditional giants Fujitsu and NEC continue to reign, despite increased penetration from outsiders. Because of the region's cultural and commercial diversity, this is a difficult part of the world in which to succeed. However, the rewards are here for vendors, including startups, who are willing to make a commitment to the region."
Detailed analysis of the optical transport market is available from RHK's "Optical Transport: People's Republic of China" and "Optical Transport: Japan and Rest-of-Asia-Pacific" services. These services provide extensive research on key optical transport vendors and service providers in Asia-Pacific; market forecasts of optical transport systems; and analysis of the market and technology drivers influencing optical transport network deployment.
RHK's forecast is based upon over 50 interviews with service providers throughout Asia-Pacific, and numerous interviews with equipment vendors. RHK's Asia-Pacific service focuses on Asia's two major telecom markets, China and Japan, and also analyzes other significant markets throughout the Asia-Pacific region, including Australia, Hong Kong, India, Indonesia, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, and Thailand. This continuous information service from RHK's STARTRAX product offering provides market share and analysis reports, market forecasts, and vendor and service provider profiles, in addition to other standard program deliverables.
About RHK:
RHK Inc. is a market research and consulting firm specializing in the analysis of advanced technologies for the public telecommunications network. For more information, visit www.rhk.com.