Abstract
LEXINGTON, Massachusetts (September 24, 2009) - WinterGreen Research announces
that it has a new study on optical component markets worldwide. The 2009 study
has 669 pages, 231 Tables and Figures. Markets are poised to achieve
significant growth as broadband is implemented from optical component
capabilities. Use of the Internet as a vehicle of social networks to share
pictures and videos, as a channel, as an enabler of the supply chain, and as
accessible from the iPhone and other 4 G handheld mobile devices is creating
demand for high speed optical network buildout.
At speeds of more than 1 Gbps, the ability of copper wire to transmit more
than 300 meters is limited due to the loss of signal over distance as well as
interference from external signal generating equipment. The proliferation of
electronic commerce, communications and broadband entertainment has resulted
in the digitization and accumulation of enormous amounts of data. Copper
continues to be the primary medium used for delivering signals to the home and
desktop because it is in place.
The need to quickly transmit, store and retrieve large blocks of data across
networks in a cost-effective manner has increasingly required enterprises and
service providers to use fiber optic technology to replace copper for the
transmission of data at higher speeds over greater distances and to expand the
capacity, or bandwidth, of their networks.
The data, audio, video, and VoIP applications and services using a network
became actual, achieving real arrival of the broadband society. The Internet
has brought change to retail buying and business life. The role of network has
become increasingly important. Larger capacity and more efficient network is
required.
The optical network is spreading rapidly to core networks, to an enterprise
network, to the access network, and to a telecom network. Datacom networks
include storage and server networks, and the high-performance, high-efficiency
and high-reliable optical components technology supports all these different
types of networks.
Optical components are leading-edge optical modules and optical devices that
support the broadband, ubiquitous network. They contribute to consumer
activities, social networking, and business by providing solutions for optical
network construction.
A PON is a point-to-multipoint, fiber to the premises network architecture in
which unpowered optical splitters are used to enable a single optical fiber to
serve multiple premises, typically 32-128. A PON consists of an Optical Line
Terminal, or OLT, at the service provider' s central office and a number of
Optical Network Units, or ONUs, near end users. A PON configuration reduces
the amount of fiber and central office equipment required.
The optical component markets are anticipated to expand to provide network
capability that supports broader reach of information and productivity
improvements for the enterprise.
According to Susan Eustis, lead author of the study, “innovation drives
changes in optical component technology, stimulating growth in every industry.
Innovation depends on implementation of automated business process in every
instance. Optical transceiver components and modules are used to build out
broadband networks. In short order, the network speeds have increased from one
gigahertz and below to 10 gigahertz, moving rapidly to 40 gigahertz for most
broadband, and almost simultaneously to 100 gigahertz for highly utilized
backbone transmission situations.”
This has caused enormous disruption in the optical component markets as the
technologies that work at one speed generally are not suitable for the next
step up in speed. Market consolidation of the optical component business is
proceeding apace. Acquisitions and partnerships form the base for market
consolidation. As the Finisar/Optium merger leverages market advantage, many
mergers have occurred and more mergers are likely to occur. Pressure for
consolidation is likely to continue.
The merger of Finisar (FNSR) and Optium (OPTM) puts these companies in a
strong position because it implements consolidation of the market that
increases unit volumes, decreases prices per component, and stimulates overall
market growth because components are more affordable and can be used in more
situations.
Optical components markets at $3.8 billion in 2008 are expected to reach $11.3
billion by 2015. Demand for broadband Internet connectivity drives optical
components markets. The markets are comprised of transceivers, optical
amplifiers, passive, and active optical component technology.
Research Methodology
WinterGreen Research authors use a structured, consistent, and detailed
research approach. The methodology supports an analytical approach to market
research. In depth comparisons are made of many aspects of the market. Data
relating to Industry segments is developed to permit presentation of forecasts
and market share positioned to have substantive value.
Research has been automated using automation of interactive surveys that
implement delta trend analysis and instant messaging in combination with
e-mail. Automation is made possible because of a proprietary engine that
implements multilayered cell based analysis. Modular systems support dynamic
computing that use a graphical configuration engine to reach more people in a
research modality.
Full spectrum research and information services, including market reports,
customized research, and customer interviewing are available, reports and
research are positioned to provide strategic value to industry participants,
strategic planners, and product managers.
New systems combine sales tools and independent industry analysis, seeking to
leverage the expertise of the sales force and combine it with the skepticism
of the analysts to provide accurate return on investment analysis.
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