Market Trends for Optical Amplifiers

Table of Contents

• Executive summary
• In a nutshell
• Ovum view
• Demand for amplification continues as does demand for lower cost
• Key messages
• Market led by strong suppliers
• Demand complicated by array of options, favors incumbent suppliers
• Waiting, watching, preparing for the amplifier market game-changer
• Strong demand for optical amplifiers
• Traffic grows in network core
• Metro moving to 50GHz
• Agility as a major amplifier requirement
• 40 and 100Gbps raise demand for single-channel amplifiers
• 100Gbps Ethernet ready to come out of the gates
• 100Gbps DWDM
• 40 and 100Gbps DWDM on a new transmission fiber (i.e., fiber carrying 40 or 100Gbps solely)
• Amplification in access networks
• Amplification in cable TV
• Amplification for radio frequency over fiber (RFOG)
• WDM PON
• 10Gbps PON
• Optical amplifier opportunity summary
• Optical amplifier component supplier review
• Strength goes to suppliers who supply the pump lasers
• Controlling functional modules also offer competitive advantages
• Dispersion compensators for mid-stage access
• ROADMs for mid-stage access
• Raman amplifiers have a role in this market
• Cable TV and FTTx amplifier
• System vendors challenge optical amplifier suppliers
• Strong pricing pressures
• Strong demand for all different kinds of amplifiers
• Optical amplifier supplier analysis
• Incumbents dominate optical amplifier market
• Optical amplifier opportunity
• Ovum finds too many suppliers
• Market led by Oclaro (formerly Bookham and Avanex), JDSU, and Furukawa
• Cost reduction strategies
• Stagnant optical amplifier suppliers
• Little new competition
• Raising barrier to entry
• While pump lasers present high barrier to entry, their role has changed
• Diverse amplifiers also challenge suppliers
• Consolidation of the behemoth incumbents raises the bar - Oclaro formed from Bookham' s acquisition of Avanex
• Incumbents support semiconductor optical amplifiers
• Little outside investment
• Nonexistent venture capital spending
• Outlook, more of the same
• Optical amplification led by specialization and incumbent suppliers
• Incumbents need to continue to build a higher barrier to entry
• New entrants or market attackers need to be comprehensive suppliers

List of Tables

• Table 1: Optical amplifier opportunity summary
• Table 2: Dispersion compensator suppliers by technology, typical insertion loss, and other issues
• Table 3: ROADM suppliers, technology, typical insertion loss, and other issues

List of Figures

• Figure 1: IP traffic in NA core network, optical equipment capacity, and cost
• Figure 2: End-to-end network showing point-to-point (old) and mesh (future)
• Figure 3: Schematic of representative narrowband amplifier showing discrete components
• Figure 4: Pump laser suppliers
• Figure 5: Schematic of representative amplifier with mid-stage access
• Figure 6: Schematic of a Raman amplifier
• Figure 7: Schematic of a high-power amplifier
• Figure 8: Total demand for wavelength management products, 2008 and 2014 (estimated)
• Figure 9: The relative strength of optical amplifier suppliers
• Figure 10: Low-cost strategies of optical amplifier manufacturers
• Figure 11: Erbium doped fiber amplifier suppliers and some of their other products