Optical telecom component market to reach $6 billion by 2012

February 27, 2008, London, UK--Market research firm Ovum RHK has posted a new optical component five-year forecast for WAN, datacom, and access components.

February 27, 2008, London, UK--Market research firm Ovum RHK has posted a new optical component five-year forecast for WAN, datacom, and access components. Forecasts include:

* Merchant demand is led by WAN optical components, growing to $3.5 billion in 2012, followed by datacom at $1.5 billion, and access at $0.97 billion.
* Total demand for 40-Gbit/sec modules is expected to reach nearly $900 million by 2012.
* Total demand for 10-Gbit/sec modules will reach 1.6 billion by 2012.
* 8- and 10-Gbit/sec datacom transceivers are predicted to be dominated by the SFP+ form factor, accounting for more than 70 percent in 2012.
* ROADM modules will grow to more than $300 million in 2012.

"Bandwidth demand is strong in all segments of the market as carriers deploy new networks to support rapid growth in bandwidth-intensive services," says Daryl Inniss, vice president at Ovum RHK. "The OC suppliers are challenged with managing a torrid market appetite for new products. Fortunately the demand exists, but OC suppliers must ramp production, manage suppliers, contract manufacturers, and inventory and introduce new products to maximize revenues and margins."

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