Europe Exiting Optical Network Spending Slump, Data Centers Bullish on 100G: IHS Infonetics Report

CAMBRIDGE, MA -- (Marketwired) -- 05/26/15 -- IHS (NYSE: IHS) today reported that global optical network hardware spending was up 5 percent in the first quarter of 2015 (1Q15) from year ago as signs of improvement continued to emerge in EMEA (Europe, the Middle East and Africa) and as Japan prepares for a large-scale 100G rollout.

"The focus in optical networking is now shifting to the metro as new products targeted specifically at this market are announced and scheduled for production. This will allow datacenters and traditional service providers to more rapidly adopt metro 100G in a significant way," said Andrew Schmitt, research director for carrier transport networking at IHS.

"Meanwhile, the service provider market is fracturing into two factions -- the telcos and webcos -- each with specific optical transport needs and requirements. Webco spending is growing faster right now, so vendors are repositioning to align roadmaps and marketing with their needs," Schmitt said.

MORE OPTICAL MARKET HIGHLIGHTS

The worldwide optical network equipment market, including WDM and SONET/SDH, totaled $2.7 billion in 1Q15.

With 2 consecutive quarters of year-over-year growth under its belt, Europe appears to be exiting an optical slump; results in the region are better than the headline numbers due to the strengthening dollar.

The company outperforming in Europe is Alcatel-Lucent, with a steady trend of rising revenue.

WDM revenue rose 9 percent globally in 1Q15 from the previous quarter, putting up an 11th consecutive quarter of growth.

100G spending is rapidly increasing worldwide and comprises around a quarter of total WDM revenue, which is flowing primarily into the hands of Alcatel-Lucent, Ciena, Cisco, Huawei and Infinera.

Internet content providers (ICPs) continue to surge and presently account for roughly one-tenth of North American optical spending, though volatility in future expenditures is likely.

OPTICAL ANALYST CONFERENCE CALL
Clients: Log in to view analyst Andrew Schmitt's optical market recap and outlook, live May 27 at noon ET or on-demand: www.infonetics.com/cgp/login.asp?id=1021.

OPTICAL NETWORK REPORT SYNOPSIS
The quarterly IHS Infonetics Optical Network Hardware market research report tracks and forecasts the global optical equipment market. The research service provides worldwide and regional market size, vendor market share, forecasts through 2019, analysis and trends for metro and long haul SONET/SDH and WDM equipment, Ethernet optical ports, SONET/SDH/POS ports and WDM ports. Vendors tracked include Adtran, Adva, Alcatel-Lucent, Ciena, Cisco, Coriant, Cyan, ECI, Fujitsu, Huawei, Infinera, NEC, Padtec, Transmode, TE Connectivity, Tyco Telecom, ZTE, others. To purchase the report, please visit: www.infonetics.com/contact.asp.

RELATED RESEARCH

Packet-Optical Transport Deployments Slower Than Anticipated:
http://www.infonetics.com/pr/2015/Packet-Optical-Survey-Highlights.asp

In Data Center Optics Market, 40G Transceivers Ubiquitous, 100G Accelerating:
http://www.infonetics.com/pr/2015/2H14-Data-Center-Optics-Mkt-Highlights.asp

In Telecom Optics Market, 100G Transceiver Growth Suppressed Until 2016:
http://www.infonetics.com/pr/2015/2H14-Data-Center-Optics-Mkt-Highlights.asp

OTN Switch Spending Up 40 Percent from a Year Ago:
http://www.infonetics.com/market-research-report-highlights.asp

RECENT AND UPCOMING RESEARCH
Download the IHS Infonetics 2015 service brochure (http://www.infonetics.com/downloads/2015-Infonetics-Research-Services-Brochure.pdf) or log in: www.infonetics.com/login.
- Analyst Note: Verizon and Metro 100G News (Mar. 18)
- 1G/10G/40G/100G Networking Ports Forecast (Apr. 27)
- ROADM Components Forecast (May 6)
- Optical Network Hardware Vendor Scorecard (June)
- 100G Coherent Optical Ports Forecast (July)

IHS INFONETICS WEBINARS (https://www.infonetics.com/infonetics-events)
- Evolving Service Provider Network Architectures: Cloud, SDN, NFV and Packet-Optical (May 28: Register)
- Optical Transport for Data Centers and Content Providers (June 30: Learn More)
- SDN for Optical Transport (Watch now)
- The Rise of Optical Data Center Networks (Watch now)
- Multilayer Optical Transport (Sponsor)

TO PURCHASE RESEARCH, PLEASE CONTACT:
- N. America (West), Asia: Larry Howard [email protected] +1 408-583-3335
- Americas, EMEA: Scott Coyne [email protected] +1 408-583-3395
- China, Asia, India: Jeffrey Song [email protected] +86 21-3919-8505
- Japan Takashi Kimura, TAK [email protected] +81 3-6408-5566

About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of insight, analytics and expertise in critical areas that shape today's business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.

IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. © 2015 IHS Inc. All rights reserved.

Image Available: http://www.marketwire.com/library/MwGo/2015/5/26/11G042659/Images/2015-IHS-Infonetics-1Q15-Optical-Network-HW-Mkt-Fc-775714253515.jpg

   News Media Contact:Andrew SchmittResearch Director, Carrier Transport NetworkingIHS +1 408-583-3393Email contact Twitter: @aschmitt

Source: Infonetics Research

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