Metro Optical Market Shines Through the Darkness
Cahners In-Stat/MDR (www.instat.com) expects the metro
optical network market (including traditional SONET, next
generation SONET, Dense Wavelength Division Multiplexing
(DWDM) and optical Ethernet) to grow from $13 billion in
2001 to $23.6 billion in 2005, making it one of the fastest
growing segments in the telecommunications equipment
industry.
The high-tech research firm reports that over the next
year, legacy Synchronous Optical Network and Synchronous
Digital Hierarchy (SONET/SDH) networks will be expanded and
upgraded as carriers weather the current economic climate.
However, newly constructed networks that are designed
specifically for data-centric traffic and based on next-
generation optical network systems, will offer the best
hope for future profitability. These networks will lower
operating costs, improve packet-handling efficiency, and
position network operators to capture revenue from new
services.
The current U.S. economic recession and depressed demand
for broadband services will likely continue through at
least mid-2002. Network investment will be minimized, with
network operators trying to minimize losses. The long-term
forecast for U.S. and international metro optical network
markets remains very positive and will be the primary
driving force in the metro optical equipment market.
In-Stat/MDR has also found that:
- Large global equipment suppliers including Alcatel,
Cisco, Fujitsu and Nortel compete with a slew of
relatively young start-ups including Atrica, Foundry
Networks and ONI Systems in the metro optical space.
- Applications such as broadband Internet access,
videoconferencing, and streaming media are generating
steep increases in metro network traffic each year. To
meet future needs, metro networks must exhibit
scalability, simplification, multi-service, protection
and QoS.
This Market Alert is drawn from the report, "Metro Optical
Networks: Evolution vs. Revolution" (#IN020400OP),which
provides an overview of the metropolitan optical network
equipment market, reviews the structure and requirements of
metropolitan networks and compares emerging metro optical
networking technologies/product segments. Alternative
network solutions are also discussed offering insight into
the metro network evolution. Multi-year market revenue
forecasts are presented for each technology segment, in
addition to a listing and brief description of equipment
vendors. To purchase this report, or for more information,
please visit instat.com
or contact Courtney McEuen at 916-984-1179;
cmceuen@instat.com. The report price is $2,995 USD. |
