Strong Bandwidth Demand Will Drive Optical Components to $6B in 2012

(Business News & Technology News, 26 Feb 2008)

Ovum RHK has posted a new optical component five-year forecast for WAN, datacom, and access components. According to the report, merchant demand is led by WAN optical components, growing to $3.5 billion in 2012, followed by datacom at $1.5 billion and access at $0.97 billion.

Demand for 10Gbps modules will reach $1.6 billion by 2012, while demand for 40Gbps modules will touch nearly $900 million by 2012. Meanwhile, 8Gbps and 10Gbps datacom transceivers will be dominated by SFP+ form factor, and ROADM modules will grow to over $300 million in 2012.

"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. 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."

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