Huawei leads optical networking space with 21 percent market share in Q3: Ovum

Telecom vendor Huawei is leading the global optical networking (ON) space with 21 percent market share in the third quarter of 2013, said Ovum.

Huawei’s Chinese rival ZTE has 13 percent market share in Q3 in ON.

Alcatel Lucent is in the third position with 11 percent ON market share.

The Ovum report says telecom vendors Ciena, Fujitsu and Infinera grew revenues sequentially and year over year, thanks to their presence in North America. Infinera moved into the top 10 globally, ousting Coriant.

Global optical networking spending decreased 9 percent to $3.7 billion in Q3.

Ron Kline, principal analyst – Network Infrastructure at Ovum, said total spending may be under pressure, but when it comes to deploying the latest infrastructure to support exploding bandwidth requirements, the demand for 100G, OTN and packet switching capabilities provided by CPO gear continues to see strong growth among telecom operators.


Ovum does not share details about telecom operators which are investing heavily in ON roll outs.

The Ovum report says sequential and year-over-year gains in North America have mitigated declines in Asia-Pacific, EMEA and South & Central America. Market spending continues to fluctuate by quarter depending on region/sub region and seasonal spending patterns, resulting in stagnant sales on a global level.

The telecom analysis from Ovum says there will be 1 percent growth in ON in 2013 to $14.8 billion and exceeding $17.5 billion by 2018.

ON in North America

Strong Tier-1 operator spending drove increased converged packet optical (CPO) and 100G deployments in the North America. ON revenues in the region topped $1.1 billion in Q3.

Ovum says spending for ROADM, 40G and 100G all increased slightly over the prior quarter. CPO revenues fell due to lower spending in Asia-Pacific. Annualized CPO spending surpassed $7 billion for the first time.

CPO represents more than 50 percent of ON spending. The data center is the new central office, and operators are refreshing network technology to address changing traffic patterns as the steady march to IP continues.

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