100G Equipment Worldwide Annual Sales of Over One Billion USD

OVUM latest market data shows, 100G optical network equipment sales exceeded $ 1 billion for the first time this year. However, see from 2013 Q1 overall sales results, the growth of the market still faces challenges.

"A quarter of the market decline is very common, but this decline is still worrying, because this is the fifth decline from the same quarter last year, and is the lowest quarterly revenue in the past six years. " Ovum network infrastructure analysis Teacher Ron Kline expressed.

However, Kline is not entirely an expected sadly. "Bright side is, 100G continues to show strong growth with the ring. In the first quarter 2013, 100G port shipments increased 41% on the moving base, revenue growth of 24%, with annual revenues for the first time more than one billion USD. In Q1 2013, there are more than 20 devices equipment providers including FiberStore earn income in 100G devices. More vendors will enter the market this year. Forecast from equipment manufacturer is cautiously optimistic. Orders increase is visible in the short term, but still invisible in the long run.

According to the latest market share analysis, sales of the next generation of optical packet transmission system, including OTN switching equipment, as last quarter, growth performance is good. However, 40G equipment decline in annual sales for the first time, is possible an indication of prices of 100G decline and 40G market comes down. From a regional perspective, compared to the same quarter last year, expenses in the Asia Pacific and EMEA decline, spending hold the line in North America, South American growth of 15%.

The current downturn comes from the expenses increase of non-IP/Ethernet aggregation equipments. Prices decline as the result of the slow growth of the European economy and the fierce competition.

Overall, the optical network equipment market outlook is at brighter edges.