Data centers to drive optical networking equipment market to $20 billion by 2017

Telecom Lead India: Data centers are expected to drive
optical networking equipment demand to $20 billion by 2017.


The optical networking equipment will grow at 5 percent
compound annual growth rate (CAGR).


The highest growth region will be Latin America, driven
by network modernization efforts to enhance regional connectivity in support of
mobile and broadband access network buildouts.


North America is expected to exhibit solid growth as
tier-1 network operators embrace new 100G technology to meet growing data
center needs.


Growth in Asia-Pacific is expected to continue but will
cool a bit after 5 years of torrid growth.


The EMEA market is expected to expand, despite the
current macro-economic malaise, due to deployment activity in Russia, the U.K.,
Eastern Europe and Africa.


The new bandwidth driver is data centers. Large-scale
data centers continue to be built out – both the multi-tenant, carrier-neutral
variety and private data centers.


The data centers are being placed in brand new
locations, creating brand new optical networking demands. For example, the new
Facebook data center at Lulea, Sweden, near the Arctic Circle, will require
terabits of bandwidth. These new demands are not unique to Lapland – they are
emblematic of a trend unfolding in multiple European and North American
locations,” said Ian Redpath, principal analyst in Ovum’s Network Infrastructure


According to Ovum, a ridge of high-bandwidth
pressure in North America is approaching, networks based on the last generation
of technology and 10G have filled up, and 100G is ready.


In EMEA, Russian network operators have visions of supplying
pan-Asian capacity interconnecting the Far East to Europe overland. The
southeast U.K. is another hotspot, with over 150 data centers outside of
central London that require high-bandwidth interconnection.


In China, the optical network market has trebled in size
over the past 5 years and continues to grow. Much of the core backbone was
built in support of early generations of mobile technology, but there is still
a wave of high-speed fixed broadband and next-generation mobile to come.


The ON market in Latin America is in great shape as
incomes have been rising, enabling network operator revenue growth. Broadband
is recognized as an essential service, and inter- and intra-continental
connectivity is undergoing an upgrade.


Huawei leads optical network equipment market in Q4 2011


Chinese wireless equipment major Huawei is leading the
optical network equipment market in Q4 2011.


In the fourth quarter, the largest optical vendors
benefitted most – with the exception of Cisco – including Huawei (up 35
percent), Alcatel-Lucent (up 20 percent), and Ciena (up 10 percent).


Both Ciena and Infinera bucked the North America
down-trend with positive quarterly optical revenue.


Recently, Infonetics said that Ciena tops the
list of vendors service providers consider to be leaders in 40G and 100G
optical technology, next gen packet-optical transport systems (P-OTS), and
overall optical transmission and switching.


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