The analysts at market research firm LightCounting say their data shows “the optical components and transceiver industry is booming again.” Better yet, this boom doesn’t look like it will go bust anytime soon.
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While some of the increased activity is a result of several slow quarters in late 2008 and early 2009 as customers are replenishing inventories, LightCounting notes, “a few factors” suggest that accelerated optical transceiver and component market growth will be sustained for several years:
LightCounting data on optical transceiver shipments in 2004-2009 suggest that investments in network infrastructure were lagging traffic growth by 10-15% per year, so increased investment may be required now to catch up.
Major upgrades to enterprise data centers worldwide are clearly underway, fueled by online applications and services. New data centers require much more optical connectivity than in the past because of increased data rates and changes in data center architecture.
"As the tide wave of recovery seems to be lifting all boats, it is important to identify market segments and product categories that will sustain market growth for more than just a few quarters,” commented Dr. Vladimir Kozlov, founder and CEO of LightCounting.
"Despite continuous consolidation, supply chain of the optical networking industry remains fragmented, presenting a unique opportunity for strategically savvy companies to take full advantage of the market recovery," added Brad Smith, senior vice president and analyst at LightCounting.
LightCounting’s latest report outlines the state of the optical component and transceiver industry, examining the industry dynamics in several market segments including SONET/SDH, Ethernet, Fibre Channel, WDM, FTTx, and optical interconnects. The report also discusses the profitability, diversification, and business strategies of optical component and transceiver vendors as well as their customers and suppliers.
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