Quarterly Shipments of Coherent 100G+ Ports Exceed 100,000 Units for the First Time
BOSTON – December 1, 2017 – Recent results and concerns regarding EMEA spending trends outlined in Cignal AI’s third quarter Optical Hardware Report have led the market research firm to cut 2018 forecasts for the region. On a more positive note, the report illustrated spending gains for metro WDM equipment in North America, with Cisco and Ciena benefiting from healthy year-over-year growth. The report also noted that coherent 100G+ port shipments exceeded 100,000 units globally for the first time this quarter – a remarkable milestone for the technology.
“Healthy sales of metro WDM in North America offset the continuing weakness in long-haul WDM,” said Andrew Schmitt, lead analyst at Cignal AI. “Among optical hardware manufacturer growth in North America, Cisco was on top. The company enjoyed double-digit year-over-year growth resulting from a massive ramp of shipments in the cloud and colo market as well as growth in NCS 4000 revenue.”
Cignal AI’s Optical Hardware Report is issued quarterly and examines optical equipment revenue across all regions and equipment types, including shipment information and guidance from individual equipment companies. Forecasts are based on spending trends by region and equipment type.
Additional report findings include:
- EMEA revenue sinks, forecast lowered for 2017-2018 – In Q3, EMEA revenue dropped almost 20 percent year-over-year. Huawei experienced a very sharp decline in the region and provided negative guidance. Cignal AI reduced its forecast for EMEA for this year and 2018, based on weak spending trends among tier-1 customers.
- Chinese revenue growth stalled in 3Q17, but overall spending growth for 2017 is still expected to be strong. However, Cignal AI cut its 2018 forecast for China based on ongoing uncertainty tied to regional spending.
- Spending in the rest of the Asia Pacific (ROAPAC) remained elevated. Following a big leap in the second and third quarters of 2017, Cignal AI marked down the 2018 forecast in this region, predicting current spending levels will subside.
- Central and Latin America spending continued to decline as large carriers in Brazil and Mexico cut back on capex. Based on conversations with vendors, Cignal AI expects this decline to resolve itself and a recovery to begin in 2018.
About the Optical Hardware Report
The Cignal AI Optical Hardware Report includes market share and forecasts for optical transport hardware used in optical networks worldwide. It analyzes and quantifies revenue for metro WDM, long-haul WDM, and submarine (SLTE) equipment in six global regions, and includes detailed port shipments by speed. Vendors examined include Adtran, ADVA Optical Networking, Ciena, Cisco, Coriant, ECI Telecom, Ekinops, Fiberhome, Fujitsu, Huawei, Infinera, Juniper, Mitsubishi, NEC, Nokia, Padtec, TE Connectivity, Xtera and ZTE. Deliverables include an Excel database and PowerPoint summaries, plus Cignal AI’s Active Insight real-time news briefs.
About Cignal AI
Cignal AI provides active and insightful market research for the networking component and equipment market and the market’s end customers. Our work blends expertise from a variety of disciplines to create a uniquely informed perspective on the evolution of networking communications.