The optical network hardware market, including WDM and SONET/SDH, declined 3 percent in 2013, said Infonetics Research.
In the fourth quarter of 2013, the growth in the global optical network hardware revenue was flat to reach $3.1 billion.
WDM segment posted a 6th consecutive quarter of growth in 4Q13. In 2013, the growth was 11 percent as 100G deployments hit the ground.
Though the traditional 4Q Capex flush was in full effect in EMEA, the region recorded a 5th straight year of spending declines; Infonetics expects EMEA to revert back to being a third of global spending within 1-2 years.
The Chinese optical market closed 2013 up only 6 percent, but performance is anticipated to improve in 2014 as 100G rollouts pick up steam.
EMEA optical vendors such as Alcatel-Lucent, Ciena, Coriant and Huawei had grown 4Q13, said Infonetics Research.
Andrew Schmitt, principal analyst for optical at Infonetics Research, said: “All indications are that an all-clear from Verizon and AT&T is forthcoming and the Q4 drop was a pause rather than a reversal – and this is in line with our forecasts.”
Meanwhile, Dell’Oro Group, said optical transport equipment revenues are forecast to reach $15 billion by 2018. Dense Wave Division Multiplexer (DWDM) equipment sales are expected to drive the majority of the optical market’s growth for the next five years.
Continued demand for capacity driving the need for DWDM equipment and specifically 100 Gbps wavelengths. Dell’Oro Group expects the DWDM market to grow at an average annual rate of eight percent through 2018 and for 100 Gbps wavelengths to contribute the largest share of DWDM capacity shipments, approaching 80 percent by 2018.
Movement towards OTN and packet transport driving the demand for optical packet platforms with OTN switching features. Optical packet platform revenue will grow at a 15 percent compounded annual growth rate.
