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Optical Equipment Sales Expected to Grow
August 3, 2005
By Dan Muse
Dell'Oro Group, a market research firm that specializes in networking and telecommunications, last week published it 5-Year Forecast Report. The Redwood City, Calif.-based company forecasts that the optical equipment market will grow 38 percent between 2004 and 2009.
The report forecasts that Dense Wavelength Division Multiplexing (DWDM) sales will grow 62 percent by 2009--outpacing that of SONET/Synchronous Digital Hierarchy SDH sales — as service providers enhance their metro network to deliver more bandwidth.
"The market for optical equipment continues to strengthen as service providers work on projects to deliver more bandwidth and new services like video," said Jimmy Yu, senior analyst for optical transport research at Dell'Oro Group. "Plans to increase capacity will require more DWDM systems in the metro as well as higher-speed ports on both SONET/SDH and DWDM systems."
According to the report, technology segments such as DWDM metro and 10 Gbps wavelengths are benefiting from strong growth rates as service providers shift capital spending from maintenance projects to growth projects. The report predicts a four-fold increase in DWDM metro port shipments and forecasts an average growth rate of 36 percent per year for 10 Gbps ports.
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