SOURCE: Infonetics Research

Infonetics Research

April 24, 2009 13:25 ET

Infonetics Research: $1 of every $7 spent on optical equipment is by verticals other than service providers

CAMPBELL, CA--(Marketwire - April 24, 2009) - Communications market research firm Infonetics Research released its Optical Network Hardware by Vertical Market report last week. Highlights from the market research report follow.

"It is no surprise that service providers purchase the lion's share of optical gear and use all types of optical network equipment, purchasing much of long haul gear, and a majority of the SONET/SDH gear. However, non service provider verticals represent about $1 of every $7 invested in optical equipment. Much of this equipment supports storage extension of some sort, even though many non-military, non-security government bodies are building local, regional, or national networks to interconnect a large number of sites to central data," said Michael Howard, Infonetics Research's co-founder and principal analyst for optical, routing, switching, and Ethernet.

Andrew Schmitt, Infonetics Research's new directing analyst for optical, added, "The largest operators command the largest share of optical network equipment spending by far, with competitive telcos the next largest market; together these two verticals account for about 90% of all service provider optical hardware purchases. Incumbents and mobile operators will continue to acquire competitors, as well as out of territory incumbents and mobile operators, and will grow into a larger slice of the pie. Cable operators are a larger opportunity in North America than anywhere else in the world. Internet content providers, such as Google, Yahoo!, and MSN, represent an exciting, small but growing segment."


--  Worldwide sales of optical network hardware hit $15.5 billion in 2008
    and are expected to grow to $17.2 billion in 2013
--  Service provider investment in optical network equipment is driven by
    IP network transformation, business capacity and service upgrades,
    residential triple play, and mobile backhaul
--  Non-service provider verticals as a whole are buying more optical
    equipment, both in the long haul and the metro, driven mostly by high
    capacity, highly available storage extension, data center interconnection
    for businesses, and secure transmission
--  Metro WDM optical equipment is a fast growing area of investment for
    non-service provider verticals, especially finance and government
--  Top optical vendors: Alcatel-Lucent, Huawei, Nortel, Nokia Siemens
    Networks, Fujitsu, Ericsson, NEC


Infonetics' optical hardware by vertical report provides worldwide and regional market size, forecasts, and analysis for 12 vertical markets, split by metro WDM, metro SONET/SDH, long haul WDM, and long haul SONET/SDH optical equipment.

Vertical markets tracked include 4 service provider verticals (incumbent telco and mobile operators, competitive telcos, cable operators/MSOs, ICPs), and 8 non-service provider verticals (education and research, government, finance, healthcare, media and entertainment, transportation, utilities, and other).

Markets are tracked in North America, Europe/Middle East/Africa (EMEA), Asia Pacific, and Central and Latin America (CALA), and totaled for worldwide.


To download this report if your organization has purchased it, or to download sample data from the report, log on to Infonetics' portal from

For sales, please contact Larry Howard, vice president, at or +1 (408) 583-3335.

Infonetics Research is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

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