Global optical networking (ON) spending versus the year-ago quarter grew decidedly for the first time in six quarters in 2Q13, according to analyst firm Ovum. Results of US$4.08 billion for 2Q13 were 29% higher than they were in 1Q13 and 7%...
August 29, 2013
Global optical networking (ON) spending versus the year-ago quarter grew decidedly for the first time in six quarters in 2Q13, according to analyst firm Ovum. Results of US$4.08 billion for 2Q13 were 29% higher than they were in 1Q13 and 7% higher than the year-ago quarter. Most significantly, annualized spending grew to US$14.9 billion.
Vendor results were strong, led by the Chinese vendors. ZTE had its strongest quarter ever, solidifying its position behind Huawei as the second-ranked ON vendor. Annualized spending in Asia-Pacific, at over US$6 billion, hit an all-time high. Demand in North America was also up significantly, benefitting Alcatel-Lucent, Cisco, Ciena, and Fujitsu. Growth in 100G remains a particular bright spot as annualized revenues exceeded US$1.6 billion for the first time ever. Ovum is forecasting modest 2% growth this year to US$14.9 billion.
In a new market share analysis, Ovum reveals that strong sales in Asia-Pacific and North America mitigated weakness in EMEA and South & Central America, propelling the industry to its best quarter since 4Q11. The global industry analyst believes the market downturn that began in 1Q12 may finally be past in all regions except Europe, which is still showing signs of sluggishness.
“We always expect an uptick going into the second calendar quarter,” said Ron Kline, network infrastructure analyst at Ovum. “However, sales of over US$4bn help dispel some of the fear generated by the slow start in 1Q13,” . “100G revenue growth is pumping a lot of enthusiasm — and revenue — into the market and increasing the revenues for converged packet optical (CPO) and optical transport network (OTN) switching gear.”