Worldwide optical network equipment spending was down 12% sequentially in the first quarter of 2016 (Q1 2016), reflecting a typical seasonal adjustment for the industry, according to market analysis by Infonetics, part of market research company IHS. However, the market notched a 13% year-over-year increase that was anchored by accelerating 100G investment in long haul and metro applications.
Long haul wavelength-division multiplexing spending was strong in Q1 2016, growing 23% year-over-year. The 100G long haul market continues to be robust, with projects in China and North America underway and delivering significant revenue. Several vendors have noted that they see no letup in 100G long haul demand.
Metro WDM saw solid gains in Q1 2016 as well, with an increase of 15% over the year-ago quarter. Data centre expansion, public and private cloud adoption, preparation for broader introduction of 4K video and emerging virtual reality applications are expected to continue to drive the growth of bandwidth in the metro.
Synchronous Optical Networking and Synchronous Digital Hierarchy spending continues to decline, representing just 11% of the total optical equipment market in Q1 2016.
Additional Optical Network Hardware Market Highlights included the following: Nokia debuted as the number-two optical equipment manufacturer, behind leader Huawei; the first quarter of 2016 marked Nokia’s re-entry into the optical equipment market, this time anchored by the former Alcatel-Lucent’s optical network business; Asia Pacific remained the largest consumer of optical hardware in Q1 2016, representing close to 40% of overall market spend; optical equipment spending in EMEA remained cautious in Q1 2016—declining 19% sequentially, but up 2% on the year-ago quarter.
The IHS Optical Network Hardware Quarterly Market Tracker tracks the global market for metro and long haul WDM and SONET/SDH equipment, Ethernet optical ports, SONET/SDH ports and WDM ports. The report provides market size, market share, forecasts through 2020, analysis and trends. Vendors tracked include Adtran, ADVA, Ciena, Cisco, Coriant, Cyan, ECI, Fujitsu, Huawei, Infinera, NEC, Nokia (Alcatel-Lucent), Padtec, TE Connectivity, ZTE and others.