Abstract
Research Overview
Competition from Wireless Likely to be Negated by Expansion of Wave
Division Multiplexing and Dense Wavelength Division Multiplexing
Underdeveloped countries prefer wireless networks to fiber optics, a fact that
poses concerns about the future of optical products in the fiber optics
market. Moreover, the rate of technology development in wireless is expected
to be more than that of fiber optics and this could mitigate the growth of
optical products. However, the growth of wave division multiplexing (WDM) and
dense wavelength division multiplexing (DWDM) is likely to aid in market
growth.
Development of Infrastructure in Asia Pacific to Drive Demand for Fiber
Optic Networks
"The nature of businesses in Asia Pacific is such that they require fiber
optics. For such businesses, information is critical and therefore, companies
hesitate to purchase low-priced networks, since it could force a compromise on
quality of communication or data transfer," says the analyst of this study.
"Also, as demand for higher bandwidth emerges, vendors are expected to develop
user-friendly products such as the reconfigurable optical add/drop
multiplexers (ROADMs) and optical emitters."
Unlike Latin America, some countries in Asia Pacific have better
infrastructure to support fiber optic systems. As a result, there is intense
competition among network deployers to cash in on this opportunity. This
scenario is even more profitable to fiber optic enterprises, as they are not
dissuaded by high costs of investment once they are assured of better optical
component products. Products vendors based in the West can take advantage of
this situation and increase their profits.
The Success of ROADMs Attracts Increased Investment, Boosting this
Market
Many investors foresee a bright future for ROADMs and although the initial
investment required for deploying this technology is high, several market
participants are willing to pool in funds in order to meet these costs. This
highlights the immense potential of this product in the coming years and with
several ROADMs already successfully deployed, there seems to be no turning
back for this technology.
"In addition, as the fiber optics market expands, certain product lines such
as laser diodes, erbium doped fiber amplifiers (EDFAs), and ROADMs should
experience higher investments for the innovation of new products in existing
technologies," notes the analyst. "Apart from inventive products, certain
technical changes in older solutions such as optical amplifiers and connectors
are also expected to spur the market."
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