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Boston, Massachusetts (23 August 2016)- Today, research firm Cignal AI released market share analysis from its 2nd quarter 2016 (2Q16) Optical Hardware report. The report summarizes optical equipment revenue results for the quarter and capstones earlier interim reports made by Cignal AI as company results were systematically released throughout the quarter.

According to the report, global spending on optical network equipment (SONET/SDH, WDM, and Submarine LTE) grew 15% from the previous quarter.  However, this growth was largely driven by Huawei’s strong results in China and its export markets. Without Huawei’s results, the market for equipment was essentially flat YoY.

“The surge in deployment of coherent 100G technology made China the largest global market for optical equipment for the first time. We see no signs yet of a slowdown,” said Andrew Schmitt, Lead Analyst at Cignal AI. “Chinese service providers are preparing to pivot 2017 spending into metro WDM and to adopt both DCO technology from Acacia and CFP2-ACO technology from companies such as Oclaro.”

“Worldwide, long haul WDM grew faster than metro WDM, as a multi-year cycle of spending is nearing completion. Lower cost, higher capacity coherent technology has reached production and will now catalyze a spending shift into metro WDM.”

Optical Hardware Report Highlights

  • In North America, Ciena, Coriant, and Fujitsu recorded a weaker quarter as robust spending from Cloud and Colo and Cable MSO customers was not enough to offset declines in spending by the tier-1 operators such as AT&T and Verizon.
  • Huawei results carried EMEA to year over year (YoY) growth; however, it masked a steep decline in revenue for other equipment vendors in the region.
  • In China, optical equipment spending was up dramatically – 25% YoY – as widespread deployment of coherent 100G continued.
  • ADVA posted exceptional growth with a large increase in coherent 100G shipments to North American Cloud and Colo customers. Also, Nokia secured a major win with China Mobile with its 1830 PSS-24x platform.

About the Optical Hardware Report

The Cignal AI Optical Hardware report includes market share and forecasts for optical transport hardware used in fiber optic networks worldwide. Deliverables include traditional Excel database and Powerpoint summaries, plus continuously published Active Insight.

The report analyzes spending on metro WDM, long haul WDM, and submarine (SLTE) in six global regions. The vendors that are examined include Adtran, ADVA Optical Networking, Ciena, Cisco, Coriant, ECI Telecom, Ekinops, Fiberhome, Fujitsu, Huawei, Infinera, Juniper (BTI Systems), NEC, Nokia, Padtec, TE Connectivity, Xtera, and ZTE.

Full report details are available to registered users.

About Cignal AI

Cignal AI provides active and insightful market research for the networking component and equipment market as well as its end customers. Our work blends expertise from a variety of disciplines to offer a unique, informed perspective on the continuous evolution of networking communications.

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