Wednesday, October 16, 2013

ACG: Strong Optical Networking Spending Promises Steady Growth

ACG Research is projecting that the Total Worldwide Optical Networking market will increase from $14 B to $17.25 B by 2018 (CAGR 4.4%).

Its study finds that the immediate growth is coming from network expansions of the incumbent carriers in North America and APAC and driven largely by the up-take in LTE services. This build-out should take a couple years to complete and will also expand to the EMEA market where it will fuel revenue growth in the outlying three to five years. The projected five-year growth on a regional basis will be EMEA (CAGR 5.0%), Americas (4.7% CAGR) and APAC (3.7% CAGR). Based upon revenue generation the ranked order is Americas, APAC and EMEA.

ACG Research also forecasts that the packet optical transport segment (POTS) will grow the fastest over five years (7.2% CAGR) and reach a $2 B run rate in 2018. Meanwhile, the legacy product segments of Long Haul DWDM (4.7% CAGR), Metro DWDM (4.7% CAGR) and MSPP (4.0% CAGR) will continue to grow; they account for approximately 85% of the total optical network spend during the next five years. This is due largely to the relationships or dependencies between the product segments. The only product segments forecast to deliver negative growth over five years are the optical cross connect (OXC) segment (-6.0% CAGR) and the SONET/SDH (-9.1% CAGR) segment.

http://www/acgresearch.net

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