Our 1H17 edition of the Optical Hardware Applications report has been released.
The report contains details on the following areas:
Compact Modular hardware market share and forecasts
100G+ Coherent port shipments vendor market share
100G, 200G, and 400G+ Coherent and Direct Detect port shipments and forecast
Advanced Packet-OTN Switching market share and forecasts
This report includes significant updates and enhancements:
Initiated a coherent 400G port shipment forecast, estimating demand for 400G wavelengths in CY17 and beyond, including the upcoming 400G ZR pluggable format. The forecast also quantifies the emergence of coherent 100G in volume at the edge of the optical network. A more detailed written analysis sharing the assumptions behind this forecast will be published in the coming weeks. In the meantime, we welcome feedback on the quantitative forecast.
Renamed DCI Hardware category to “Compact Modular”. DCI is an application, not a hardware category, and these compact, modular chassis are being used in several applications, including DCI. As Incumbent, Cable MSO, and Wholesale operators evaluate and deploy these systems it is important that this category name better reflect the defining characteristics of these systems. A listing of the specific systems in this category can be found here.
Added 1H17 market share results for Compact Modular and Advanced Packet-OTN Switching equipment hardware. Also updated coherent port shipment market share to include vendor results for 1H17.
Compact Modular hardware forecast increased in 2017 and 2018 as result of discussions with vendors. This is a bottoms-up change with the risk that multiple vendors are double-counting the same opportunities.
Historical 100G+ Port Shipments adjusted to align with actual customer shipment data.
Current subscribers can download Excel and PowerPoint files.
On August 20th, Cignal AI issued full optical equipment market share analysis for 2nd quarter 2017 (2Q17). This second report extends our analysis and summarizes forecasts and outlooks for the industry through 2021.
Subscribers to the Optical Hardware Report are able to download an excel file with actual results through 2Q17 along with detailed, up-to-date forecasts. A complete compilation of our 2Q17 market share and forecast analysis is available in both web format as well as .pdf format.
Cignal AI has released its 2nd quarter 2017 (2Q17) optical hardware market share analysis, which includes a summary of revenue results for the quarter.
Global spending on optical network equipment increased slightly, led by increased spending in China and India.
Optical revenue in China is up 13 percent for the first half of 2017 as compared to the same period in 2016. The weak demand reported by component makers is a result of an ongoing inventory correction (primarily at Huawei), rather than a signal of weak end market demand.
Huawei and ZTE both reported record shipments of 100G coherent ports in China during the quarter. The companies also showed strong revenue performance in the region.
North American spending increased quarter-over-quarter. Consistent with earlier Cignal AI forecasts, North America is experiencing a shift in spending from long haul to metro WDM. Ciena and Cisco are the primary beneficiaries of the double-digit year-over-year growth in NA metro WDM. Both companies grew market share, and Ciena’s North American optical equipment revenue increased by 21 percent year-over-year.
Outside of China and Japan, the rest of the Asia Pacific (ROAPAC) countries experienced 20 percent year-over-year growth. This region’s growth was particularly fueled by India’s Reliance Jio, which is purchasing substantial amounts of equipment from Ciena and Nokia as part of an aggressive 4G LTE expansion in the country.
EMEA revenue dropped substantially, stemming from sharp declines in spending in the long haul WDM and submarine systems markets. Metro WDM spending remained flat year-over-year.
Growth in metro WDM spending is creating greater demand for higher speed coherent ports, which are evolving from 200G to speeds as high as 400G later this year.
Subscribers to the Optical Hardware report can download an excel file with actual results through 2Q17. This Excel file contains only historical data, and is an interim release. A file with greater detail, including updated forecasts and additional analysis, will be available August 25th, 2017.
On June 15th, Cignal AI issued full optical equipment market share analysis for 1st quarter 2017 (1Q17). This second report extends our analysis and summarizes forecasts and outlooks for the industry through 2021.
Subscribers to the Optical Hardware Report are able to download an excel file with actual results through 1Q17 along with detailed, up-to-date forecasts. A compilation of our latest analysis is also available in both web format as well as .pdf.
Cignal AI has released its 1st quarter 2017 (1Q17) optical hardware market share analysis, which includes a summary of revenue results for the quarter.
Global spending on optical network equipment eased worldwide, led by a double digit decline in North America.
Ciena remains the best performing company in North America (NA) as it remained immune to sharp pullbacks in long haul WDM (LH WDM) spending. NA spending continues to stall as a result of a technology transition from long haul to metro WDM capex, as well as materially lower results from Infinera – the second largest vendor in the region.
European (EMEA) spending was weaker although some vendors reported good results compared with 1Q16.
Optical equipment spending growth in China stalled as uncertainty about the outlook for 2017 rippled through the industry. Huawei remains very confident growth will return in 2H17 but its component suppliers grow increasingly negative as they receive mixed messages from the supply chain.
Metro WDM growth has yet to appear in order to offset sharp declines in LH WDM spending. This will change in 2017 as multiple vendors bring the technology to market. Coriant, Infinera, and Nokia have been impacted by this trend.
Subscribers to the Optical Hardware report can download an excel file with actual results through 1Q17. This Excel file contains only historical data, and it is an interim release. A subsequent file with updated forecasts and additional analysis will be available June 19, 2017.
On February 27th, Cignal AI issued full optical equipment market share analysis for 4th quarter 2016 (4Q16). This second report, issued on March 9th, extends our analysis and summarizes forecasts and outlooks for the industry through 2021.
Subscribers to the Optical Hardware Report are able to download an excel file with actual results through 4Q16 along with detailed, up-to-date forecasts. A compilation of our latest analysis is also available in both web format as well as .pdf.
Cignal AI has released its 4th quarter 2016 (4Q16) optical hardware market share analysis, which includes a summary of revenue results for the quarter as well as the entire calendar year 2016 (CY16).
Global spending on optical network equipment increased in all global regions except North America during CY16.
Nokia and ADVA were the only vendors recording significant gains in North America in a challenging 2016 environment as growth in Cloud and Colo spending failed to offset decreases in Incumbent capex. Overall, NA spending stalled in the face of the beginning of the transition from long haul to metro WDM capex.
Huawei drove EMEA’s modest annual spending growth in 2016, as its strong performance in this region masked the decline in revenue experienced by other equipment vendors.
Optical equipment spending in China – led by Huawei – increased dramatically. Deployment of coherent 100G ports doubled from that of the previous year. 2017 heralds even more rapid change, as Huawei and ZTE use new component technologies and the deployment of 100G moves to the regional level.
Outside of China, Ciena and Nokia outperformed their peers by leveraging leading edge 200G technology and tightly integrated supply chains. ADVA benefited from a wave of Cloud and Colo spending but now must face the uncertain revenue cycles that are characteristic of these customers. Infinera is scrambling to complete a critical product cycle while Fujitsu and Coriant navigate product and market transitions.
Subscribers to the Optical Hardware report can download an excel file with actual results through 4Q16. This Excel file contains only historical data, and it is an interim release. A subsequent file with updated forecasts and additional analysis will be available March 3, 2017.
Cignal AI has released its comprehensive 3rd quarter 2016 (3Q16) optical equipment market share analysis, which provides a summary of revenue results for the quarter.
The global spending on optical network equipment increased dramatically in 3Q16, with all global regions showing increased spending year over year (vs 3Q15).
In North America, Ciena, Nokia, ADVA and Coriant all recorded positive year over year (YoY) results with Cloud and Colo customers driving large revenue gains. Overall, the NA region grew more modestly YoY than some of the other regions. Cable MSO’s spending declined, and large gains from the above vendors offset revenue declines at both Fujitsu and Infinera.
Huawei was the driver of YoY growth for EMEA yet again, as the company’s strong performance continued to mask declines in revenue for other equipment vendors in the region. Excluding Huawei, there was a sharp decline in spending, and Infinera was the only other vendor with substantial YoY gains.
Chinese optical equipment spending continued to surge, 20+% YoY, as coherent 100G deployment marched forward. Chinese equipment companies anticipate further growth through 2017, with an acceleration in metro WDM deployment next year.
Outside of the secular boom benefiting Chinese suppliers, Ciena and Nokia performed well YoY and ADVA preserved large gains it made in 2Q16. A common denominator of growth was exposure to the Cloud and Colo sector.
Japanese equipment suppliers enjoyed a second quarter of YoY revenue increases as 100G deployment is ramping up in the region. At the same time, a market share shift from NEC to Fujitsu appears to be taking place.
Subscribers to the Optical Hardware report can download an excel file with actual results through 3Q16. This Excel file contains only historical data, and it is an interim release. A subsequent file with updated forecasts and additional analysis will be available November 28th.
Andrew Schmitt gave an update on the optical equipment and component market during an investor call hosted by Troy Jensen of Piper Jaffray on Tuesday, October 4. Sixty-eight investors participated. An extended Q&A session followed Andrew’s presentation, and topics of interest included:
China 100G port volume trends for 2H16 and 2017
Huawei’s upcoming 100G technology decisions and supplier purchasing shifts
CFP2-ACO shipments and the component & equipment supply chain for this product
Coherent DSP R&D developments and supplier updates
Updates on direct-detect 100G and PAM-4 development
Observations on Infinera, Ciena, Acacia, Inphi, and Clariphy and discussion of potential M&A activity
Following is a summary of the key takeaways, as well as a full transcript of the discussion. Cignal AI clients can also listen to an audio replay.
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Andrew Schmitt presented at the ECOC (European Conference for Optical Communications) in Dusseldorf, Germany during the week of Sept. 19. No time was wasted during the trip as Andrew fit in well over 30 scheduled meetings with component and equipment suppliers and end users of optical hardware.
The meetings were very productive and we gained new insight in several areas:
Huawei’s plans to transition to 100G CFP-DCO technology and what will follow
Updates on vendor selection and R&D in coherent DSPs
Details on the ongoing ramp in CFP2-ACO and the development of this new market
Overview of 400G market development
More insight into Nokia’s China Mobile optical design win
Cignal AI has released full optical equipment market share analysis from 2nd quarter 2016 (2Q16). This report summarizes optical equipment revenue results for the quarter.
Subscribers to the Optical Hardware report can download an excel file with actual results through 2Q16. This Excel file contains only historical data and is an interim release. An excel file with updated forecasts and additional analysis will be available August 29th.
Global spending on optical network equipment 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 was essentially flat YoY.
In North America, Ciena, Coriant, and Fujitsu recorded a weaker quarter than the previous as the robust spending from Cloud and Colo operators and from Cable MSO’s was not enough to offset declines in spending by the tier-1 operators such as AT&T and Verizon.
Huawei 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 the widespread deployment of coherent 100G continued to unfurl.
Second to Huawei, ADVA posted the strongest quarterly results with a large increase in coherent 100G shipments to North American Cloud and Colo customers. Also, Nokia secured a major win with China Mobile.
Detailed analysis of the market and it’s participants for 2Q16 follows. Requires Optical Hardware subscription.
Cignal’s Active Insight promises real-time information, and with that in mind, we are providing an update on Ciena. Ciena reported results for its April-2016 quarter on June 2nd. Corporate results were decent from an overall revenue perspective, but performance in the optical equipment area was slightly disappointing. Some interesting things from Ciena are reaching market, such as lower cost 200G and Waveserver, but these innovations have not yet positively impacted the company’s optical revenue. Requires Optical Hardware subscription.
Our initial set of optical equipment results and forecasts for Datacenter Interconnect, Advanced Optical Switching, as well as detailed 100G+ Coherent and non-coherent port shipments have been published in Excel format.
Report information, tracked vendors, and details on categories have also been updated. Subscribers can download the full excel file, registered users can view updated report information.