Fiber-to-antenna applications driving growth of OC market, report says

Optical components are seeing a rise in demand thanks to the surge in transceiver sales for fiber-to-the-antenna applications used in LTE network buildouts. According to research firm Ovum, the global optical component market saw revenues of $6.8 billion in 2013, which was an increase of 3 percent over 2012. And the firm expects the OC market to increase by 8 percent in 2014.

Ovum said that demand for 100G components for coherent transmission in WAN, datacom transceivers at 10 and 40G and fiber-to-the-antenna transceivers is strong and will help drive the market forward. In addition, it noted that the WAN OC segment of the market, which includes components in the telecom carriers' core and metro networks, continues to be the largest segment and is forecasted to grow at a compound annual growth rate of 11 percent to $7 billion in 2019.

That demand for the WAN OC segment will compensate for the ROADMs and amplifier segment, which was weak in 2013 and is expected to be weak again in 2014. By 2015, Ovum expects that this segment will pick up again as demand grows for directionless, colorless and contentionless ROADMs with a flexible grid.

Ovum analyst Daryl Inniss said that vendors should be optimistic about optical components in 2014 and beyond. He added that Ovum believes that 100G metro-optimized transmission gear will begin to ramp in 2015 and that will bode well for components makers. He added that there are also emerging opportunities in data centers for high-speed interconnects.

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