2Q18 Optical Customer Markets Report

Cignal AI has issued the 2Q18 Optical Customer Markets Report. Updates include:

  • Added 2Q18 optical sales for the five tracked customer verticals, allowing clients to see total purchases of optical equipment by customer market.
  • Updated 2Q18 market share for vendor sales to cloud and colo operators which benchmarks the magnitude of business each company does these operators.
  • Added tables and chart of rolling 4 quarter market share of cloud and colo to better highlight longer-term vendor strengths in this sector.

The Optical Customer Markets Report examines the following:

  • Optical shipments to five end customer types across four global regions
  • Tracks shipments to Incumbent, Wholesale, Cloud & Colo, Cable MSO & Broadband, Enterprise & Government customers
  • Detailed vendor market share for equipment sales to Cloud and Colo customers
  • Forecasts by region and customer type

Significant statistics reported this quarter include:

  • Record cloud and colo spending reported in 2Q; now a significant share of spending in North America
  • Incumbent spending in China is equal to all other incumbent spending worldwide combined
  • Cable MSO spending in North America continues to be strong

Subscribers can download the latest Excel and PowerPoint files.

Report Details Excel PowerPoint

Requires Optical Customer Markets subscription

Third Generation Coherent Technology (Presentation)

Andrew Schmitt gave a presentation during ECOC 2018 entitled “Third Generation Coherent Technology.

The presentation was based on the Active Insight written report published in July and was a presentation made to invited members of the OSA/OIDA during ECOC.

The transition to the latest coherent WDM technology is underway and its effects are rippling through the optical market. This presentation summarizes the history of the coherent market and outlines the technology’s expected evolution over the next 4 years.

Powerpoint (.ppt)


Clients can view a recorded version of the presentation with Andrew’s commentary and may use the comments for discussion and questions.
Requires Optical Active Insight subscription

2Q18 Optical Applications Report

Cignal AI’s 2Q18 Optical Hardware Applications Report has been issued.

The new report has significant updates and enhancements:

  • Implemented rolling 12-month average data, allowing clients to see better see long-term market share and trends absent of seasonality effects.
  • Added 2Q18 market share results for Compact Modular and Advanced Packet-OTN Switching equipment hardware as well as 2Q18 100G+ port shipments.
  • Adjusted 100G+ port forecasts for 2018.

Current Optical Applications Report subscribers can download updated Excel and PowerPoint files.

Report Details Excel PowerPoint


Further detail on the changes and updates to Cignal AI’s Optical Applications Report are below:

Requires Optical Hardware Applications subscription

2Q18 Optical Hardware Report

This report finalizes our full optical equipment market share analysis and includes updated forecasts for the industry through 2022. It is released once results for the current quarter (2Q18) are complete. Clients have been able to see company results as they were released during the quarter via the Optical Hardware Tracker, a service unique to Cignal AI.

Subscribers to the Optical Hardware Report can download an excel file with actual results through 2Q18 along with detailed, up-to-date forecasts. A complete .pdf document of this report is also available.

Excel PDF Detailed analysis of the market and its participants during 2Q18 follows.

Requires Optical Hardware subscription

2Q18 Optical Hardware Tracker

The Cignal AI 2nd quarter 2018 (2Q18) Optical Hardware market share tracker is now complete. This tracker allows clients to download a real-time view of industry results as companies report. Updates are made continuously and are reflected in the tracking table below.

Subscribers to the Optical Hardware report can download an excel file with actual results reported-to-date through 2Q18. This Excel file contains reported vendor data for 2Q18 and the previous forecast made during 1Q17. A complete report with all vendors and updated forecasts will be published by August 25th, 2018.

Report Details Excel


TE Conn

Requires Optical Hardware subscription

Third Generation Coherent Technology

The transition to the latest coherent WDM technology is underway and its effects are rippling through the optical market. It’s time to take a step back and sort out where things are, what worked, who benefitted, and what happens next.

In this Active Insight report, Cignal AI outlines several generations of coherent WDM deployments and examines the catalysts and keys to market success for the third generation of coherent.


  • Third generation coherent has arrived and will account for almost all global coherent market growth starting in 2019.
  • Maximum speed alone is not a sufficient benchmark for success in the coherent market. Baud rate and system features better differentiate coherent generations as multi-haul technology becomes a reality.
  • Historically, vertically integrated companies that design and engineer the coherent link end-to-end have been first to market and capture most of the worldwide market share.
  • 4th gen coherent is only two years away and will address the massive metro-edge market. The introduction of 400ZR and lower speed derivatives will squeeze out 10Gb/s WDM deployments.
  • The transition to 5th gen coherent places greater importance on system-level engineering as the Shannon limit is reached and opportunities for improvement in the coherent DSP diminish.

Download PDF of This Article

Requires Optical Active Insight subscription

Cloud Spending on Optical Hardware – 1Q18 Update

In October 2017,  Cignal AI analyzed the occurrence of a slowdown in spending by cloud & colo operators and quantified the magnitude of its impact (see Analysis: 1H17 Cloud and Colo Spending Slowdown).

The report conclusions contradicted the common but inaccurate perception that spending by cloud operators such as Amazon, Google, and Microsoft on optical transport equipment was growing at a rapid rate.

This report has been enhanced with new analysis and updated vendor shipment data from 3Q17, 4Q17, and 1Q18 from equipment and component vendors.

This update includes:

  • A summary of cloud & colo spending definitions
  • Fresh analysis of changes in quarterly spending trends by cloud & colo operators through 1Q18
  • Recent shifts in market share among optical equipment vendors to this customer market
  • Quantitative analysis of underlying causes of flat spending, including continued price compression through 2018 and displacement by IPoDWDM via Inphi, Acacia, and Oclaro components.

Download PDF of This Article


Requires Optical Customer Markets subscription