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Latest Communications Industry Researchers figures indicate that integrated optics opportunities will reach $1.7B by 2006
May 7, 2003
CHARLOTTESVILLE, Va. -- According to CIR, a leading industry analyst firm based here, the world-wide market for integrated optical products will grow to $1.7 billion (US) in 2006. The firm's newest report titled, Integrated Optics in Active Components: A Four-Year Forecast also predicts that the market for active integrated components, including products such as transceivers and transponders will grow rapidly from $205 million in 2003 to $1.3 billion in 2006.
In late 2002, CIR issued a report that projected revenues for passive integrated components would achieve sales of only $422 million in 2006. CIR's new report, however, shows the active integrated-components business to have far more potential. While actives will account for 58 percent of the total $1.7 billion integrated components market in 2003, that ratio will be 75 percent by 2006. The firm points to the fact that transceiver and transponder modules are the greatest contributor to cost of an optical link and so this is where integration can potentially have its greatest impact. Components buyers interviewed for the report are enthusiastic about incorporating more functionality into transmission modules as a way of bringing down the cost and size and as the market moves to more complex products, the integration possibilities become more complex, more challenging and more commercially rewarding.
With respect to hot areas to watch, the Ethernet segment should get the most benefit from integrated devices because of its use in the cost sensitive and space challenged network segments, such as the enterprise and access. CIR expects to see sales of integrated optical Ethernet transmission modules grow from about $20 million now to approximately $244 million in 2006.
Communications Industry Researchers Inc. (CIR)
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