Ovum has shared the global optical networking (ON) vendors’ market share in the second quarter of 2013. Huawei leads ahead of ZTE.

Optical networking market revenue rose 7 percent to $4.08 billion in Q2 2013 compared with Q2 2012, while the quarter-on-quarter growth was 29 percent, Ovum said on Wednesday.

Annualized spending grew to $14.9 billion.

Chinese telecom equipment vendor ZTE had a strong quarter. However, it is still behind Huawei.

The optical networking spending in the Asia Pacific region reached $6 billion.

Significant growth in North America benefitted Alcatel-Lucent, Cisco, Ciena, and Fujitsu.

Strong sales in Asia Pacific and North America mitigated weakness in EMEA and South & Central America.

Growth in 100G remains a particular bright spot as annualized revenues exceeded $1.6 billion.

Ovum noted that 100G revenue growth is increasing the revenues for converged packet optical (CPO) and optical transport network (OTN) switching gear.

The market research agency forecasts two percent growth this year to $14.9 billion.

“We always expect an uptick going into the second calendar quarter. However, sales of over US$4bn help dispel some of the fear generated by the slow start in 1Q13,” said Ron Kline, network infrastructure analyst at Ovum.

Annualized revenues for CPO gear surpassed $6 billion for in the quarter (42 percent of total ON spending) and 100G port shipments in 2Q13 grew 61 percent, surpassing $1.6 billion for the 4-quarter period. ROADM and OTN switching were also up strongly from the year-ago quarter.

Ovum is projecting the optical networks market will exceed $17.1 billion by 2018, for a 2.7 percent CAGR from 2012. All ON market regions will resume growth in 2013 except for EMEA. Ovum does not expect a big second half bounce to make up for the anemic first half in that region.

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