Infonetics: Optical hardware hits $3.6 billion in 3Q
DECEMBER 3, 2007 -- 2007 will mark the highest revenue year for the market since the crash in 2001, says Infonetics Research.
DECEMBER 3, 2007 -- The worldwide optical network hardware market increased 3% sequentially in 3Q07 to hit $3.6 billion, and 2007 will mark the highest revenue year for the market since the crash in 2001, says Infonetics Research (search for Infonetics) in its latest "Optical Network Hardware" report.
The third-quarter gain comes on the heels of a 14% gain in 2Q07, the report shows.
"Despite quarterly fluctuations, the optical network hardware market is based on strong underlying trends, namely the rapid increases in all kinds of voice, video, and data traffic. Perennial #1 Alcatel-Lucent posted a 17% sequential gain in revenue in the third quarter, following a 23% gain in the second. Alcatel-Lucent is up 26% from Alcatel's and Lucent's combined revenue totals a year ago in the third quarter of 2006, before they merged," said Michael Howard, principal analyst at Infonetics Research.
Other highlights from the report include:
- Worldwide optical manufacturer revenue will grow to over $13
billion in 2010, as WDM product revenue increases and SONET/SDH revenue decreases each year starting in 2008.
- ROADM switch sales are up 10% in 3Q07 over 2Q07.
- The burgeoning packet optical transport system (POTS) hardware makes up 6% of total optical revenue.
- Alcatel-Lucent continues its lead in worldwide metro WDM optical revenue, followed by Cisco, Nortel, and ADVA.
- Cisco moves to the #1 spot in worldwide metro ROADM market share, Huawei jumps to the #2 spot, and Fujitsu remains #3, while Tellabs drops from #1 in 2Q07 to #4 in 3Q07.
- In 3Q07, 35% of all optical network hardware revenue comes from EMEA, 33% from North America, 26% from Asia Pacific, and 6% from CALA.
Infonetics' report provides market share, market size, and forecasts for metro and long haul optical equipment, broken out by SONET/SDH vs. WDM, with transport and switch splits, DWDM and CWDM splits, and ROADM/non-ROADM splits. The report now tracks packet optical transport systems as well. Forecasts and regional market share are updated quarterly and cover all regions.
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