Worldwide optical network hardware revenue decreased to $2.1 billion in the first quarter of 2003, down 7% from the fourth quarter of 2002, according to Infonetics Research`s quarterly worldwide market share and forecast service, Optical Network Hardware. The market is expected to total $8.5 billion this year.
Contrary to the down trend, metro wave division multiplex (WDM) revenue is up 2% and passive optical network (PON) is up 3% from fourth quarter 2002, and long-haul synchronous optical network (SONET/SDH) switch revenue is up 15%.
"The metro WDM category has been increasing, and the mild 2% increase in the first quarter of 2003 continues this trend, with Nortel, ADVA and Cisco contributing 37% of the revenue," says Michael Howard, principal analyst and co-founder of Infonetics Research. "This market is fuelled by corporate Gigabit Ethernet and storage connections, and the new, cheaper CWDM products.
"We see some buying preference shift from intelligent SONET/SDH transport into the more versatile, intelligent SONET/SDH switch, which includes transport options, as evidenced by the 15% increase in long-haul SONET/SDH switch revenue this quarter."
Optical hardware revenue highlights include:
* Four manufacturers account for 43% of revenue (including submarine): Alcatel, Nortel, Siemens and Fujitsu. Alcatel recently sold its optical components division to Avanex.
* SONET/SDH (70%) continues to outpace WDM (30%).
* Top categories overall: metro SONET/SDH (58%) and long-haul WDM (21%).
* EMEA leads at 33%, then Asia/Pacific at 32%, and North America at 27%.
The Optical Network Hardware report tracks SONET/SDH, WDM transport and PON hardware. Forecasts and regional market share are updated quarterly and cover all regions (worldwide, North America, EMEA, Asia Pacific, CALA). Companies tracked in this service include ADVA, Alcatel, CIENA, Cisco, Fujitsu, Lightscape, Lucent, Lumentis, Marconi, Nortel, Siemens, Tellabs and others.
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