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Transceivers Global Sales Reach $2.4 Billion
Based on a forecast report conducted by LightCounting, industry momentum in the year 2010 is gaining although the capex index is declining on a continual basis. The telecom networking equipment market also is showing modest growth. As stalled business projects are being restarted, datacom systems sales show significant growth in 2010. The demand for optical components and modules also grew, thus indicating a positive industry-wide recovery. LightCounting is a leading market research company focused on in-depth study of the optical communications market.
As per the forecast, transceivers global sales will go up to $2.4 billion in 2010, almost a 16 percent increase compared to last year. Also because of the increased sales of 8G and 10G SFP+ transceivers, the Ethernet and Fiber Channel modules sales will increase by 17 percent and 25 percent respectively. There will be a 22 percent increase in the sales of DWDM transceiver driven by 10 Gbps XFP modules.
Devices such as passive optical components, ROADMs, pump lasers and amplifiers are typically used in the early stages of network installations. Consequently, the growing sales of these devices predict the start of a new cycle of infrastructure upgrades. In a press release, David Krozier, senior analyst at LightCounting, commented, “Concerned about the future impact of a hobbled infrastructure, governments in the United States, China, India, and elsewhere are investing in economic stimulus programs to support the growth and expansion of their national communications infrastructure and jumpstarting a new investment cycle. We also see increasing use of optical connectivity in wireless infrastructure to support the exploding bandwidth needs of new 3G and LTE (News - Alert) networks.”
The forecast report includes analysis of infrastructure upgrades, trends in networking equipment market summary and detailed analysis of the optical components and modules forecast. A five-year detailed forecast for optical components and modules used in Ethernet, Fiber Channel, SONET/SDH, CWDM/DWDM, wireless infrastructure, FTTx, and high performance computing applications has been reported through 2014. Transceiver sales are correlated with network traffic growth and projected subscribers of FTTx systems so as to conduct the five year market forecast through 2014.
