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Introduction

Annualized global optical networking (ON) spending grew 0.3% sequentially, but declined 2.2% versus 1Q14 to $14.1bn in 1Q15. For 1Q15 alone, global ON revenues of $3.1bn were down nearly 14% from 4Q14, but came in 1.6% higher than 1Q14. Huawei, ZTE, and Infinera were the only vendors to gain share in 1Q15.

Highlights

  • Annualized spending grew, at 0.3%, for the second consecutive quarter in 1Q15, after four straight quarterly declines; however, it also was the twelfth consecutive period of year-over-year annualized revenue decline.
  • Bandwidth to support LTE, residential broadband and business services in China, and increasing requirements for data center interconnect in North America drove market results.
  • Huawei maintains its market leadership, and along with ZTE and Infinera saw the biggest share gains in 1Q15, while Fujitsu, Cisco, and Coriant saw the biggest share losses. Adva replaced Ericsson in the top 10. While overall ON market growth remains weak, 100G continues to grow very strongly, rising 65% versus the year-ago period in 1Q15, surpassing $4.5bn.

Features and Benefits

  • Details revenues of top-performing vendors in the global ON market, including share position by segment and region.
  • Examines changes in product demand resulting from the global economic climate.
  • Discusses how actual market results are tracking to Ovum's forecasts by region, segment, and subsegment.

Key questions answered

  • How did the global optical networking market perform in 1Q15? What are the trends by product segment and region?
  • Which ON vendors are increasing their share in the global market? Which products are behind their success?
  • How are actual results tracking to Ovum's most recent forecast?
  • Which segments and regions are outperforming or underperforming expectations and why?
  • What are the key applications driving demand in the ON market?

Table of contents

Summary

  • In brief
  • Ovum view

1Q15 results

  • Market beginning to stabilize
  • Losers outnumber winners

Market share changes

  • Huawei, ZTE, and Infinera see share gains

Regional analysis

  • Weakness in Europe and SCA not helped by struggling euro

Product-level analysis

  • SLTE improved substantially in 1Q15; access WDM/CPO-T remains strong

Market growth and outlook

  • The global outlook for 2015 remains mixed

Appendix

  • Methodology
  • Further reading
  • Author

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