FTTX modules/components to surpass $1.5 billion by 2011

Nov. 1, 2006

The market for modules and components used in FTTX networks will grow from an estimated $629 million this year to more than $1.5 billion by 2011, contends a new report from CIR Inc., “FTTx: The Opportunities for Component Suppliers.”

Carriers are expanding rollouts of fiber-based networks, resulting in new opportunities for component suppliers. CIR projects the active components business, which includes transceivers, transmitters, and receivers, to net nearly $800 million in revenue by 2011. The CIR analysts believe this opportunity is significant enough to attract larger manufacturers to the space, which currently lacks dominant suppliers. In passive components, PON splitters, couplers, and amplifiers are expected to reach $438 million by 2011, and the electronics used in PON deployments should net nearly $300 million during the forecast period.

The report also reveals that:

The FTTX components market will remain highly price sensitive. Vendors with proprietary manufacturing technologies that result in high yields and those that deploy optical integration will remain competitive while maintaining margins.

New markets will emerge for components that cater to the specific requirements of WDM-PONs and PONs operating at 2.5 and 10 Gbits/sec.

FTTX presents economies of scale for those component manufacturers with the appropriate resources.

The electronic chip companies will find new opportunities to supply higher-layer chips that enable new services, including voice over IP and IPTV, as well as additional security.

For more information about the report, visit www.cir-inc.com.