Connections +
News

ZTE slips by Alcatel-Lucent in ON market: Ovum

Ovum’s analysis of first quarter results in the US$14.5billion global optical networking (ON) market has highlighted several key shifts.


May 29, 2013  


Print this page

Ovum’s analysis of first quarter results in the US$14.5billion global optical networking (ON) market has highlighted several key shifts.

First, the research firm said, ZTE overtook Alcatel-Lucent to grab the number two spot; for the first time, Chinese vendors hold the top two ranks in optical networking.

Second, growth in 100 GbE remains a bright spot as annualized revenues exceeded $1 billion for the first time. Third, market growth overall remains difficult, challenging equipment vendors; only Fujitsu posted sequential and year-over-year gains.

“While it is not uncommon for the market to decline going into the first calendar quarter, the decline is worrisome as this is the fifth straight time the market has declined versus the prior year’s quarter, and quarterly revenues are the lowest they have been in six years,” said Ron Kline, network infrastructure analyst at Ovum.

Ovum is projecting the optical networks market will exceed US$17.1 billion by 2018, for a 2.7% CAGR from 2012.

Growth of IP, video, mobile data, and data center expansions occurring in urban and more remote areas will be an ongoing catalyst for network footprint extension and capacity growth, Kline said.