The optical networking equipment market outside of China was flat from 2014 and 2016. And it’s expected to decline by 5 percent this year. But technology on the optical front continues to move forward. And companies like Ciena, Huawei, and ZTE (News - Alert) continue to see growth.
That’s the word from LightCounting Market Research and Lightwave. The research firm in mid October put out a report on optical suppliers. And a late November report from Lightwave discusses optical advancement from a technological standpoint.
LightCounting Market Research notes that the world market for optical solutions is bifurcated into the Chinese market and the rest of the world. That’s because China is “effectively a closed market” in which “FiberHome (News - Alert), Huawei, and ZTE are given preferential treatment.” So although China is driving most of the growth in optical networking eqiupment sales, it indicates, it doesn’t offer much – if anything – in the way of new opportunity for other suppliers.
India, however, is a different story, the research firm says.
“Ciena and Nokia (News - Alert) are doing good business in India now, which has finally started upgrading optical networking infrastructure after many years of delays,” LightCounting writes. “Huawei (News - Alert) and ZTE were not able to secure large contracts there because of geopolitical concerns. Relations between India and China are tense. Both countries are making efforts to expand trade, but the government in India is not comfortable with Chinese vendors building their optical networks.”
As for the Lightwave report, that talks about new medium and long reach CEO-112G work from the Optical Internetworking Forum.
The new project aims to define an interface to implement high-loss 112-Gbps backplane channels, advance direct attach copper cable channel links at 112 Gbps, and built upon specifications for a chip-to-chip interface to support 112G x 2 applications.
Edited by Maurice Nagle