Report finds optical network hardware market shrinking

Aug. 27, 2012
Dell'Oro Group report states that the worldwide optical market contracted in the first half of 2012 due to lower spending in the mature markets of North America and EMEA.

Sales of optical network hardware in the first half of 2012 declined 5% versus the same period in 2011, according to new research by Dell’Oro Group.

The optical network hardware market saw sales levels of $6.1 billion during the first half of last year, according to the market research firm. North American spending decreased 12% versus last year, while sales in the EMEA region declined 16%, the new report reveals.

“The optical market contracted in the first half of 2012 due to lower spending in the mature markets of North America and EMEA,” explains Jimmy Yu, vice president of optical transport research at Dell’Oro Group. “The emerging regions of Asia Pacific and Latin America, however, did grow as service providers in the regions continued to expand network capacity.”

While revenues have grown by 7% in Asia Pacific and 11% in the rest of the world (principally Latin America) compared to the first half of last year, the overall effect has been a 5% decline, reckons Dell'Oro. Overall equipment spending trends favored Huawei, which captured approximately 20% share of the worldwide optical network equipment market in first half 2012, the new report states.

See also:Optical network systems market rebounding, finds study

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