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Global optical networking market to be worth US$20 billion by 2016: Ovum

The global optical networking (ON) market will reach revenues of $20 billion by 2016, as the sector pulls itself out of the economic downturn, predicts Ovum in a new forecast.


June 22, 2011  


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The global optical networking (ON) market will reach revenues of $20 billion by 2016, as the sector pulls itself out of the economic downturn, predicts Ovum in a new forecast.

However, the independent telecoms analyst warns that although the global market will grow at a compound annual growth rate (CAGR) of 6% from 2010 to 2016, not all of the regions will see strong growth.

Ian Redpath, Ovum analyst and author of the forecast, said that “increasing bandwidth from residential broadband networks, mobile networks, and enterprises is the key driver of the growth. Carriers are investing in access networks and mobile long term evolution (LTE) rollouts are beginning to gain momentum. The ON market is also reaching a watershed moment in terms of technology. Networks based on 40G and 100G wavelengths are now poised for mass-market deployment.

“However, while our forecast report shows a marked improvement for the market when compared to the recessionary period, it falls short of a strong bounce back. We expect yet another year of muddling out, with North America continuing to gain momentum; Europe, the Middle East, and Africa (EMEA) improving from contraction to modest growth; and Asia-Pacific beginning a modest retreat.”

Ovum predicts solid growth for North America in 2011 of 12%, up from 7% in 2010.

Redpath said emerging technologies will be the driving force in North America, adding that “we expect adoption of 100G network building to gain momentum from both carriers and non-carriers.”