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Introduction

The optical networking (ON) market grew by 5% for the second straight year in 2016 to $15.1bn, driven by China, data center applications, and fronthaul investment. For the quarter, annualized global ON spending declined 1.1% sequentially.

Highlights

  • Rest of Asia-Pacific, EMEA, China, and India were up sequentially, with China and Rest of Asia-Pacific growing year on year (YoY). The other regions were down in 4Q16 sequentially based on normal seasonal spending and very little fourth quarter budget flush, and were down YoY.
  • SLTE had the strongest growth in 2016 with 27% growth versus 2015. Access WDM, backbone WDM, and metro WDM all grew during the year, driven by cloud and mobile bandwidth growth.

Features and Benefits

  • Analyzes the key trends in the ON segment by region and product segment during 2016 and 4Q16.
  • Shows market share trends in key technology areas, such as 100G coherent and 200G 8QAM/16QAM.

Key questions answered

  • Who is the leader in global ON market share in 2016?
  • Who is the leader in global 100G coherent market share in 2016?
  • Who is the share leader for the latest WDM equipment using 8QAM/16QAM solutions?
  • Who lost share during 2016 and why?

Table of contents

Summary

  • In brief
  • Ovum view

4Q16 and 2016 results

  • The market is up 5%; the year ended slow, but stayed above $15bn

Market share

  • Four out of the top 10 vendors posted market share growth in 2016 versus 2015

Market share changes

  • Huawei, FiberHome, Adva, and Nokia see annualized share gains

Vendor highlights

  • Product and market highlights for 2016

Regional analysis

  • 2016 showed growth in all regions, except North America

Product-level analysis

  • Segment overview: technology-level analysis

Market outlook

  • The ON market is on track for $18bn by 2020, driven by new customers

Appendix

  • Methodology
  • Further reading
  • Author

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