According to research firm Ovum, the optical networking (ON) equipment market declined by two per cent and stood at $3.1 billion in the first quarter of 2014.
The research firm states that ON equipment spending witnessed quarterly decline in regions such as Europe, the Middle East and Africa (EMEA) and Asia-Pacific. In comparison, ON equipment spending increased in North America. Further, within the ON equipment market, application segments continued to witness growth. Spending on equipment including converged packet optical (CPO), reconfigurable optical add-drop multiplexing, 100G and optical transport network witnessed double-digit growth in the first quarter of 2014 over the corresponding quarter in 2013. Moreover, annualised CPO sales for the quarter under review stood at about $7.8 billion, accounting for more than half of the total ON equipment spending.
The research firm has reported that equipment vendors – Cisco and Infinera have posted both quarter-over-quarter and year-over-year revenue gains. Meanwhile, ON equipment revenues of Ciena, Alcatel-Lucent, ZTE, and FiberHome declined sequentially but increased on year-on-year basis. Also, revenues for Coriant, Ericsson, Fujitsu, and Huawei declined in the first quarter of 2014 over corresponding quarter in 2013.
Going forward, Ovum expects ON equipment market to reach over $19 billion by 2019.
