Growth Projection for APAC ON is 3.1 Per Cent in 2013, says Ovum

Global analyst firm, Ovum predicts that the optical networks (ON) market will exceed US$17.5 billion by 2018, for a 3.1-per cent CAGR from 2012. An exceptionally strong 2Q13 has signalled the beginning of a spending bounce-back. 2Q13 was the strongest quarter in the last six and was the seventh-highest quarter in the last 10 years. 

Ian Redpath, Analyst, Network Infrastructure and Author of the Report, said, “Ovum’s 9.1-per cent growth projection for North American ON sales in 2013 signals a solid bounce-back year after two years of non-growth. Network core investments are resuming and 100G is being deployed in volumes. The North American tier-1 communications service providers (CSPs) and cable operators are investing in their core network to support all traffic types." 

The major technology trend for the forecast is the ascendancy of 100G, whose revenues exceeded 40G sales for the first time in 2Q13. 100G spending was up 233 per cent for 1H13 compared to 1H12, achieving US$1 billion in revenue for 1H13, while 40G was down 24 per cent for 1H13 compared to 1H12, with revenue dropping below US$1 billion level to US$942 million.

Ovum’s most likely forecast scenario to 2018 also projects strong positive growth in North America. Modest growth is projected for Asia-Pacific as a whole, with strong growth for ASEAN-5 and ANZ, moderate growth for China, and low growth for Japan and India. The growth expectations for Europe are a mixed: down in 2013, modestly positive in 2014, and then more vigorous gains for 2015 and beyond.