Global optical networking market to reach revenues of $20 billion in 2016

Global optical networking market to reach revenues of $20 billion in 2016

  • North American market to grow by 12% this year
  • Europe, the Middle East, and Africa to return to growth
  • Asia-Pacific to contract again in 2011

The global optical networking (ON) market will reach revenues of $20 billion by 2016, as the sector pulls itself out of the economic downturn, predicts Ovum in a new forecast*.

However, the independent telecoms analyst warns that although the global market will grow at a compound annual growth rate (CAGR) of six per cent from 2010 to 2016, not all of the regions will see strong growth.

Ian Redpath, Ovum analyst and author of the forecast, commented: “Increasing bandwidth from residential broadband networks, mobile networks, and enterprises is the key driver of the growth. Carriers are investing in access networks and mobile long term evolution (LTE) rollouts are beginning to gain momentum. The ON market is also reaching a watershed moment in terms of technology. Networks based on 40G and 100G wavelengths are now poised for mass-market deployment.”

“However, while our forecast report shows a marked improvement for the market when compared to the recessionary period, it falls short of a strong bounce back. We expect yet another year of muddling out, with North America continuing to gain momentum; Europe, the Middle East, and Africa (EMEA) improving from contraction to modest growth; and Asia-Pacific beginning a modest retreat.”

Ovum predicts solid growth for North America in 2011 of 12 per cent, up from 7 per cent in 2010. Redpath commented: “Emerging technologies will be the driving force in North America. We expect adoption of 100G network building to gain momentum from both carriers and non-carriers.”

In EMEA, which contracted by 10 per cent in 2010, Ovum predicts that 2011 will be a turnaround year, with three per cent growth and a CAGR of 5.5 per cent from 2010 to 2016. Redpath commented: “Developing economies in EMEA still need basic infrastructure and the developed ones are due for a network refresh after two long years of recession-induced restraint.”

Ovum’s figures show that the market in Asia-Pacific contracted by 2.2 per cent last year and will contract by a further 3.2 per cent in 2011, although the reasons differ. Redpath added: “The 2010 reduction was due to a dry market in Japan and a government-induced freeze in India, while the Chinese market grew. For 2011, we predict growth again from Japan and India but a slowdown in China, caused by an overheated market that needs a little cooling-down period.”



*ON Forecast Report: 2011-16

To arrange an interview or for further details regarding this release please contact Kelly Livesey in the Ovum press office on +44 (0)161 238 4081, or email


Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Our research draws upon over 400,000 interviews a year with business and technology, telecoms and sourcing decision-makers, giving Ovum and our clients unparalleled insight not only into business requirements but also the technology that organizations must support. Ovum is part of the Informa Group.