World Fiber-Optic Component Markets Ready for
Free-for-All as Deregulation and Internet Demand Sweeps
the Globe
It could be argued that the information age is not on the way, but is already here. As technology speeds ahead at a frantic pace, fiber-optic telecommunications is poised to be the vehicle that brings information and people together around the world.
World Fiber-Optic Component Markets, strategic research by Frost & Sullivan, predicts that the current $7.3 billion fiber-optic telecommunications equipment market will more than double to $15.4
billion by the year 2003.
Two global trends are primarily responsible for this increased demand. First, deregulation of telecommunications markets, starting with the U.S. Telecommunications Reform Act of 1996, has resulted in heightened competition, growing market opportunities and new applications for fiber-optics. European markets have also pursued liberalization, planning to open their telecommunications markets by January of 1998. Internationally, a global telecommunications agreement under the World Trade Organization will force 69 countries to open their telecommunications markets by 1998.
As countries move to modernize their telecommunications infrastructure, fiber-optic equipment manufacturers that establish an international presence will be well positioned to capture market share
in countries building fiber-optic networks. Eastern Europe, Brazil and China are three of the many high-growth markets that have stated intentions of deploying large fiber networks in the next three to
four years.
''Developing nations have recognized that the establishment of an advanced telecommunications infrastructure is critical to economic success,'' said Mike Perez, technical analyst at Frost & Sullivan.
''The majority of opportunities emerging in these regions involve long-haul network applications.''
The second global trend has been the rapid growth of the Internet and other high-speed data applications. The extraordinary growth of Internet applications, introduction of new data services and increased popularity of work-at-home applications have all contributed to an unprecedented need for higher carrying capacity along fiber networks. Fiber-optic equipment manufacturers have responded with improvements in wavelength-division mulitplexing (WDM) components, time-division multiplexing (TDM) techniques, erbium doped fiber amplifiers (EDFAs), and non-zero dispersion-shifted fiber.
With at least 172 firms actively participating, the fiber-optic equipment market is highly competitive. There should be sufficient opportunity for strategically targeted companies to succeed in this market given the projections for consistently strong growth rates. However, a trend is likely toward acquisitions and consolidation, since service providers seek those manufacturers that offer complete
product lines.
''Customers prefer to work with one vendor and therefore desire turnkey, or end to end, solutions that are specifically designed to accommodate their specific requirements,'' said Marcie Aschbrenner, technical analyst for Frost & Sullivan. ''As a result, successful manufacturers will work closely with their customers to create solutions that meet their particular needs.''
World Fiber-Optic Component Markets segments the fiber-optic telecommunications industry into four regions and five product markets. In all cases the market analysis is sensitive to the unique
political and economic constraints in each region and place special emphasis on up-coming technological innovations. The study also provides specific strategic recommendations by department that tells competitors how they can survive in this rapidly evolving industry.
Technologies and products covered in the study include telecommunications fiber-optic transmitters, telecommunications laser transmitters, telecommunications light emitting diode (LED) transmitters, telecommunications fiber-optic cables, single-mode fiber-optic cables, multi-mode fiber-optic cables, telecommunications fiber-optic amplifiers, electro-optic fiber amplifiers, optic fiber amplifiers, telecommunication fiber-optic wavelength division multiplexers (WDM), time-division multiplexers (TDM), SONET, telecommunication fiber-optic receivers, telecommunications PIN-based
receivers, and telecommunications avalanche photo diode (APD)-based receivers.
Participants in the fiber-optic component markets include 3Com Corporation, Aberdare Cables Pty Ltd., Act Communications Inc., Advanced Optronics Corporation, Advanced Photonix Inc., Alcatel
Network Systems Inc., Alcatel Optronics, Alcatel Telecommunications Cable, Alcoa Fujikura Ltd., Allen Telecom, Alliance Fiber Optics Product Inc., American Fibertek Inc., AMP Incorporated, Andrew Corporation, Anritsu Wiltron Company, ANTEC Corporation, APA Optics Inc., Artel Video Systems, ATC International, ATI Electronique, ATX Telecom Systems, B-Catel BV, Bay Networks Inc., Belden Inc., BERK-TEK, BICC, BIW, Cable Systems Inc., Bosch Telecom Inc., Broadband, Communications Products Inc., Brugg Telecom Inc., Cable Design Technologies, Cabletron Systems Inc., Chromatic Technologies Inc., Ciena Corporation, Codenoll Technology Corporation, Coherent Inc., CommScope Inc., Communications System Inc., Comtec Cable Accessories Ltd., Corning Inc., Danzen, DiCon Fiberoptics Inc., Digi International, Ditech, EG&G Judson, EG&G Optoelectronics Canada, EG&G Optoelectronics Group, EG&G Optoelectronics Group, EG&G Vactec Inc., Electro-Optics Technology Inc., Epitaxx Inc., Equitel, Ericsson
Components AB, E-TEK Dynamics Inc., EXB Technology Inc., Fermionics Corporation, FiberCore Inc., Fiber Optek Interconnect Corporation, Fibersense & Signals Inc., Fibertron Corporation, Fibre-Data Ltd., FICO Inc., FITEL Lucent Technologies, FOCAS, Fujikura Ltd.,
Fujitsu Compound Semiconductor Inc., Fujitsu Limited, Furukawa Electric Technologies Inc., Galileo Electro-Optics Corp., GCA Fibreoptics Ltd., GC Technologies Inc., General Photonics,
Germanium Power Devices Corporation, Gould Electronics Inc., Graseby, Greybar Inc., Harmonic Lightwaves Inc., Hewlett-Packard, Hitachi Ltd., Hitachi America Ltd., Hitachi Wire & Cable, Honeywell Inc., Honeywell Technology Center, IMC Networks Corporation, Instruments S.A. Inc.,
IPITEK, JDS Fitel Inc., Kaifa Group Inc., Krone AG, Laser Diode Inc., Lasertron Inc., Lawrence Labs Ltd., Lightwave Electronics Inc., Litecom Inc., Litton Poly-Scientific, Litton Systems Inc., LM
Ericsson, Lucent Technologies, Mas-Tech International Incorporated, Matsushita Electric Corp. of America, Methode Electronics Inc., Micronet, Mitel Semiconductor Inc., Mitsubishi Cable Industries Ltd., Mitsubishi Electric, Mohawk/CDT, Montrose CDT Products Co., Moritex USA Inc., MPB Technologies, Inc., MP Fiberoptics Inc., MRV Communications, National Optics Institute, NEC Corporation, Net Optics, NEW FOCUS, Newport Corporation, Nexcom Inc., Nippon Telephone and Telegraph (NTT) Electronics Technology, Nortel (Northern Telecom) Ltd., Northern Lights Cable Inc., NSG America Inc., Oki Electric, Oprel Technology Incorporated, Optek Technology Inc., Optical Cable Corporation, Optical Communications Products Inc., Optical Corporation of America (OCA), Optigain Inc., Optivision Inc., Oriel Instruments Corporation, Ortal Technologies Incorporated, Ortel Corporation, OZ Optics Ltd., PD-LD Inc., Philips Broadband Networks Inc., Photonetics, Photonic Integration Research Inc., Photonic Power Systems Inc.,
Photonics Corporation, Physical Optics Corp., Pilkington plc, Pinacl Communications Inc., Pirelli Cable Corporation, Polymicro Technologies Inc., Porta Systems Corp., QT Optoelectronics, Remee Products Corporation, RIFOCS Corporation, Rohm Electronics Corporation, Santec
Corp., Scientific-Atlanta Inc., SDL Optics Inc., Shimadzu Corp., Siemens AG, Siemens/Siecor Corporation, SierraCom, SMI, Spectran Corp., SSI The Shop, Sumitomo Electric Industries Ltd.,
Sumitomo Electric Lightwave Corporation, SVEC Computer Corp., Synchronous Communications Inc., Tatsuta Electric Wire & Cable, TCL Inc., TechOptics Ltd., Telcom Devices Inc., Telco Systems Inc., Telect Inc., Telestra Redes Telefonicas Ltda., Teltec Inc., Thomas & Betts Photon, Thomson Hybrides, Toshiba, and US Fiber Optics & Telecommunications Corp. Related Companies in the fiber-optic component markets include Alcatel ITS, AT&T Corporate Headquarters, Embase Communications, EXFO E.O. Engineering Inc., GEC Plessey
Semiconductors, Kyocera Industrial Ceramics Corporation, MCI Communications Corp., Opto-Electronics Inc., Pirelli S.p.A., Sprint Corporation, and US West Inc. Industry Organizations in the fiber-optic component markets include IEEE Lasers and Electro-Optics Society, Institute of Electrical and Electronics Engineers (IEEE), International Telecommunications Union (ITU), Optical Society of America, and the Telecommunications Industry Association.
Frost & Sullivan is an international marketing consulting company that monitors the telecommunications industry for market trends, market measurements, and strategies. The ongoing research is utilized to update a series of research publications such as #5329-32, World Fiber-Optic Sensor Markets, and to support industry participants with customized consulting needs.
Report: 5270-60 Publication Date: July 1997 |
