Sales of optical network hardware are up for the 4th consecutive year, nearing $13.9B worldwide in 2007, a 19% jump from 2006

February 29, 2008

1 Min Read

CAMPBELL, Calif. -- Sales of optical network hardware are up for the 4th consecutive year, nearing $13.9 billion worldwide in 2007, a 19% jump from 2006, says Infonetics Research in its latest "Optical Network Hardware" report.

The market is up for the quarter as well, increasing 12% sequentially in 4Q07, led by Alcatel-Lucent, Huawei, Nortel, and Nokia Siemens, respectively, the report shows. All four market leaders posted growth in the 4th quarter.

"2007 marks the highest revenue year for the optical network hardware market since 2001. Increases in all kinds of consumer and business voice, video, data, and mobile traffic continue to drive service providers to launch IP transformation projects and invest in optical networking gear. The burgeoning packet optical transport systems market, driven by these IP transformation projects, is already close to a one billion dollar annual market in 2007," said Michael Howard, principal analyst at Infonetics Research.

Other highlights from the report:

  • The worldwide optical network hardware market is forecast to grow to $15.4 billion in 2011

  • Spending continues to shift from SONET/SDH to WDM: worldwide SONET/SDH equipment sales were up 9%, WDM sales were up 39% in 2007

  • The 40G market will continue to grow at least through 2011, and possibly 2012-2013, before reasonably priced 100G and 100GE products overtake 40G

  • WDM ROADM sales doubled in 2007 from 2006

  • In 2007, 36% of all optical network hardware revenue came from EMEA, 34% from North America, 25% Asia Pacific, and 6% CALA

    Infonetics Research Inc.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like