Dell'Oro: Optical transport market up 11% in the second quarter

AUGUST 20, 2009 -- The Asia Pacific region contributed most of this sequential growth and was the largest region, contributing nearly 40 percent of the worldwide revenues in the quarter.

AUGUST 20, 2009 -- According to a newly published report by Del'Oro Group (search Lightwave for Dell'Oro), the worldwide optical transport equipment market grew 11% quarter-over-quarter (Q/Q) in the second quarter this year. The Asia Pacific region contributed most of this sequential growth and was the largest region, contributing nearly 40 percent of the worldwide revenues in the quarter.

Dell'Oro estimates total revenue for the quarter at $3.1 billion. This represents a slight decline year over year, as Dell'Oro pegged the 2Q08 figures at $3.5 billion. The market research firm estimated the optical transport market declined 11% year over year in the first quarter.

"An 11% growth following a near historic sequential decline in the first quarter of the year gives me confidence that the worst may be over for the optical equipment market," said Jimmy Yu, director of optical transport research at Dell'Oro Group. "My only reservation is that, although each region experienced slight growth, the growth was predominantly driven by Asia Pacific which grew nearly 25% sequentially. Additionally, I estimate that it was revenue from China that contributed almost all of this region's growth, so a good deal of the optical market's recovery is dependent on China's continued strength as the other regions recover," Yu added.

Huawei and ZTE benefited from the optical sales growth in China, increasing their worldwide market shares. The top four vendors and their respective sequential growth/decline rates for the second quarter included:


    1. Huawei, 12%
    2. Alcatel-Lucent, 17%
    3. ZTE, 180%
    4. Nortel, -2%

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