Optical Networking Sales Hit $10.7 Billion In 2005: Report

The metro and long-haul optical networking market grew substantially last year as carriers continued to upgrade their networks, according to a new report from Infonetics Research. The firm expects continued steady growth through 2009.

Global revenues from sales of optical networking equipment rose 19% in 2005, to $10.7 billion, with metro equipment revenues increasing 15% and long-haul revenues climbing 32%. Nevertheless, the metro optical equipment segment continues to account the bulk of revenues, making up 71% of revenues, compared to 29% for long-haul equipment. According to Infonetics, revenues will continue to be distributed in the ratio through 2009, driven by carrier and service provider investments in infrastructures to support storage networking, advanced consumer services, and wireless networks.

Wavelength division multiplexing (WDM) equipment sales accounted for 32% of total optical revenues last year, a slice of the market pie that Infonetics says will rise to 40% in 2009. Reconfigurable optical add/drop multiplexers (ROADMs) made up 19% of that segment in 2005, but will account for 37% of WDM equipment revenues in 2009. Optical equipment revenues as a whole rose 10% last quarter, with companies like Adva, Alcatel, Ciena, Corrigent, ECI, Huawei, Siemens and Tellabs reaping the benefits, while Cisco, Fujitsu, and NEC experienced quarterly drops in revenues.