The long-haul wavelength-division multiplexing (WDM) segment of the optical network hardware market has performed better than the metro WDM sector in Q2 2016, with expenses 23 percent sequentially and 18 percent from a year ago, reports IHS Markit.
Optical expenditure in China has accelerated in Q2 2016, with 41 percent quarter-over-quarter and 22 percent year-over-year growth.
Also China has a quarter of global optical gear expenditure in the quarter.
With many expenditures being made in China alongside solid gains in EMEA (Europe, Middle East, Africa) and CALA (Caribbean and Latin America).
Huawei has a 41 percent YoY revenue growth in Q2 2016, with a 32 percent share of the optical hardware market.
Owing to 100G+ long-haul WDM and investments in China, the global optical network equipment market saw 15 percent sequential hike in Q2 2016 compared to 7 percent from the year-ago quarter at $3.5 billion.
The second quarter of the year saw WDM equipment segment touching a profit of 13 percent quarter-over-quarter and 10 percent year-over-year as 100G long-haul deployments hiked and 200G+ deployments started to ramp.
WDM long haul bags half of WDM expenditure in the quarter.
Metro WDM growth has been a bit low in Q2 2016, with 2 percent increase in Q2 2015.
Metro WDM growth will accelerate by 2016 end with new metro data center interconnect (DCI) oriented products being shipped in volume with major metro deployments in North America mainly by Verizon underway.
The Synchronous Optical Networking (SONET) and Synchronous Digital Hierarchy (SDH) segment has increased sequentially in Q2 2016 triggered by project-specific spending, with longer-term overall decline with 8 percent less expenditure YoY.