BOSTON, 25 Feb. 2008. Worldwide demand for optical networking components will grow to nearly $6 billion over the next four years, predict market researchers at Ovum RHK in Boston.
The company posted an optical component five-year forecast today for wide-area networks (WANs), data communications, and access components. Leading merchant demand are WAN optical components, growing to $3.5 billion in 2012, followed by datacom at $1.5 billion, and access at $0.97 billion.
Total demand for 40-gigabit-per-second modules is expected to reach nearly $900 million by 2012, while total demand for 10-gigabit-per-second modules will reach 1.6 billion by 2012, Ovum RHK analysts say.
In addition, 8- and 10-gigabit-per-second datacom transceivers will be dominated by the SFP+ form factor, accounting for more than 70 percent in 2012. Reconfigurable optical add/drop multiplexer (ROADM) modules, meanwhile, will grow to more than $300 million in 2012, experts predict.
"Bandwidth demand is strong in all segments of the market as carriers deploy new networks to support rapid growth in bandwidth-intensive services," says Daryl Inniss, vice president at Ovum RHK.
"The OC suppliers are challenged with managing a torrid market appetite for new products," Inniss says. "Fortunately the demand exists, but OC suppliers must ramp production, manage suppliers, contract manufacturers, and inventory and introduce new products to maximize revenues and margins."
For more information contact Ovum RHK online at www.ovum.com. This story appeared 25 Feb. in Lightwave. Click here to read the original story.
