Addition Brings Unique Perspective and Expands Firm’s Research Coverage
Long Term Chinese Capex Growth Trend Slows
Ciena Accounts for Nearly Half of 3rd and 5th Gen Coherent Ports
But a return to Growth in NA is expected in 2H21. Exceptional 4Q APAC Cloud & Colo Operator Spending.
Purchases of optical and packet transport hardware dropped sharply in the fourth quarter as operators exhausted capex earlier in the year.
Expenditures by North American cloud and colocation operators on optical and packet transport equipment declined 20 percent year over year in the third quarter of 2020 (3Q20), while incumbent operator spending increased 2 percent.
Global compact modular revenue grew 24 percent in the third quarter of 2020 (3Q20) over the prior year, versus just 7 percent for the total optical market.
European operators resumed purchases of optical and packet transport hardware in 3Q20 as COVID-related supply chain and operational delays eased.
Fourth-generation coherent will extend beyond 400ZR to include higher performance solutions generally referred to as 400ZR+ and lower speed 100Gbps (100ZR) targeted at the metro edge.
Delayed order fulfillment due to COVID supply chain impact earlier this year didn’t materialize as expected.
The effects of COVID-19 simultaneously catalyzed demand for transport equipment and paralyzed supply chains worldwide during the first quarter of 2020.
Recent optical sales in North America were encouraging – up more than 25% for 4Q19 and 10% for all of 2019 according to the most recent Transport Hardware Report from research firm Cignal AI.
Sales of Compact Modular platforms slowed during the second quarter of the year despite significant growth from market leader Ciena.
Optical hardware spending grew in every region and for every business segment during 2Q19.
Cloud and colo operator spending on optical communications hardware continued to spur market growth in the first quarter of 2019.
Compact modular optical hardware is being used in more network applications than ever before, driving up sales during the first quarter of 2019 as reported in the latest Optical Applications Report from market research firm Cignal AI.
Japan’s optical hardware spending surge continued for the fourth quarter in a row with an extraordinary 82% year-over-year increase in the first quarter of 2019.
Cloud operator spending on optical hardware grew almost 50 percent year-over-year to reach well over over $1 billion in 2018, according to the most recent (4Q18) Optical Customer Markets Report from research firm Cignal AI.
Long-haul WDM deployments rebounded in the fourth quarter of 2018 (4Q18) with growth of nearly 20 percent, fueled by a reversal of almost two years of a terrestrial spending decline in North America and a year-over-year surge in Japan.
Incumbent operator spending in Asia remains strong and now represents 35% of all optical hardware spending worldwide according to the 3Q18 Optical Markets Report.