Optical network system spending increases sequentially in second quarter 2015: IHS

Aug. 17, 2015
Sales of optical network systems in the second quarter of 2015 grew 22% sequentially, but were essentially flat versus the year-ago quarter, says market research firm IHS (NYSE: IHS). Europe was the only region to post year-on-year growth, IHS says in its upcoming 2Q15 "IHS Infonetics Optical Network Hardware" report.

Sales of optical network systems in the second quarter of 2015 grew 22% sequentially, but were essentially flat versus the year-ago quarter, says market research firm IHS (NYSE: IHS). Europe was the only region to post year-on-year growth, IHS says in its upcoming 2Q15 "IHS Infonetics Optical Network Hardware" report.

As noted earlier (see "European optical network spending finally showing a pulse says IHS"), the European market appears to be finally coming out of the doldrums when it comes to optical transport systems spending. Sales of optical network gear in the regions rose 8% versus 2Q14.

"With three consecutive quarters of good results, Europe is signaling a reversal of the terrible optical spending that we've seen in the region over the last five years," said Andrew Schmitt, research director for carrier transport networking at IHS. "This strength is concentrated in Alcatel-Lucent, Ciena, and Infinera.

"When taking into account currency effects, the results are even stronger -- adjusted for exchange rate, optical spending in Europe saw a 30% year-over-year growth rate in the second quarter when measured in euros," Schmitt added.

Besides the good news out of Europe, most of the more recent trends in optical network spending held. For example, WDM equipment sales further extended 3 years of consecutive growth on a rolling 12-month basis. WDM equipment sales grew 23% in 2Q15 from the previous quarter and 6% year-on-year. WDM equipment composed 86% of total worldwide optical hardware revenue in the quarter.

Meanwhile, Asia Pacific sales jumped 36% in 2Q15 from the previous quarter, but were off 2% versus 2Q14.

The quarterly "IHS Infonetics Optical Network Hardware" report provides info on market size and share as well as forecasts. It covers metro and long-haul WDM and SONET/SDH equipment, as well as Ethernet optical, SONET/SDH/Packet over SONET/SDH, and WDM ports.

For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer's Guide.

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