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Introduction

The optical networking (ON) market had a bad quarter in 3Q17 after a mixed 2Q17. The global market declined by 13.4% compared to 2Q17 and by 2.1% compared to 3Q16, and declined on a rolling 4Q basis.

Highlights

  • For 3Q17, share gains were tied to build cycles in China and India, Verizon, and fronthaul. Among the top ten vendors, Cisco, ZTE, Ciena, FiberHome, Nokia, Infinera, and Coriant gained share.
  • Product results were mixed due to slow 3Q17. Metro WDM, CPO aggregation, SLTE upgrade, and DCI purpose-built were the segments that grew YoY, while DCI purpose-built was the only segment that grew QoQ.

Features and Benefits

  • Assesses where ICPs/CNPs are investing, by region.
  • Compares vendors that are growing and what is driving their growth.
  • Lists the top three vendors by product type.

Key questions answered

  • What happened in the DCI market and which regions grew?
  • How much did the purpose-built product segment grow during the quarter?

Table of contents

Summary

  • In brief
  • Ovum view

3Q17 results

  • Annualized results have declined below $15bn, but not all regions are declining

Market share

  • Seven out of the top 10 vendors posted market share growth in 3Q17

Market share changes

  • Cisco, ZTE, Ciena, FiberHome, Nokia, Infinera, and Coriant see annualized share gains

Vendor highlights

  • Product and market highlights for 3Q17

Regional analysis

  • Year-over-year results down in all regions in 3Q17, except Asia-Pacific

Product-level analysis

  • Segment overview: technology-level analysis

Data center interconnect analysis

  • Annualized DCI results continue to grow, with market reaching $3.1bn, but internet content players have reduced spending

Market outlook

  • The ON market is on track for our revised $16.6bn forecast for 2020, driven by new customers

Appendix

  • Methodology
  • Further reading
  • Author

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