Optical Component
Market Opportunities, Strategies, and Forecasts, 2006 to 2012

Report # SH29821460 | 444 Pages | 123 Tables and Figures | 2006

 

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Optical Component Market Assessment

Check Out These Key Topics!

Optical Component Market Shares and Forecasts

Optical Component Overview and Competitive Positioning

Integrated-Optics

Industry Environment

Products As Basic Building Blocks DWDM Systems

Technology For Transition

Optical Component and Amplifier Products

Optical Component Technological Challenges

Microlithography

Optical Component Communications Challenges

Optical Networking Systems

Optics Packaging

Optical Photodetectors and Receivers

Optical Component
Market Opportunities, Strategies, and Forecasts, 2006 to 2012

As networks are implemented for triple play, they become complex, driving the need for fast transport based on optics. Manufacturers of communications and computer equipment are increasingly value the ability to provide integrated solutions for both opto-electronic components and integrated circuits.

Growing capabilities in combining opto-electronic components and integrated circuits into single products position the market for rapid growth. Competitors seek to offer manufacturers of communications equipment a broad portfolio of opto-electronic components that are designed to operate together to create integrated solutions. Companies participating in the optical component industry are combining multiple devices into single products, often referred to as modules, to deliver to customers functions traditionally performed by a number of separate opto-electronic devices.

Integrated product offerings combine integrated circuits and supporting software as part of a complete solution. Advanced system-on-a-chip capabilities allow users to integrate, on a single integrated circuit, multiple functions that required multiple integrated circuits.

Optical components serving the 10 Gbps space are not the only products needed. The 2.5 Gbps space is very attractive, with 40 Gbps to make an appearance this year in 2006. The main application dynamics are optical systems used with high-speed transmitters that are required to transmit longer distances.

The actual assembly of transmitters and boards will trend to the Asian region over the forecast period. Regional variation is significant in this market evolution with the underdeveloped countries choosing the least expensive components and the more developed regions adopting components that support agile, flexible network upgrades.

A transponder is used in an optical network to transmit and receive optical signals. Integrated solutions bring key benefits to manufacturers of communications and computer equipment, such as improved product performance, reduced product size and cost, and decreased time-to-market.

Competitive alternative solutions to Electro-optical (E-O) including Electroabsorption (E/A), Indium Phosphide (InP) and Mach-Zehnder (M-Z) modulator integration and standalone solutions are being developed. Packaging is the key driver, along with the main multiple:

Customers benefit by having the ability to purchase a broad array of products and solutions from a single supplier. Optical component companies seek to develop more integrated products and solutions that capitalize on experience in both opto-electronic components and integrated circuits.

As the complexity of optical networks increases, integrating more optical components into network equipment enhances network performance. Equipment suppliers are coming to prefer to rely on optical component manufacturers that possess technical expertise and knowledge across a broad range of components, and are able to efficiently integrate multiple component types into a custom solution.

Consequently telecommunications equipment suppliers seek to streamline vendor qualification procedures and concentrate volume purchases. Vendors may choose to use fewer components providing strategic advantage to market leaders.

The converged voice / data applications mean that the voice networks transition to data networks that now include video transport. Optical component worldwide markets at $2.9 billion are expected to reach $7.6 billion by 2012. Integrated optical components include amplifiers, lasers, receivers, transmitters, and transceivers and transponders.

Integrated optical components include amplifiers, lasers, receivers, transmitters, and transceivers and transponders. Markets are growing in response to the need to have more efficient networks that are high speed and agile. Flexibility and re-configurability are aspects of optical based networks.


Companies Profiled

JDSU
Finisar
Avago Technologies
Sumitomo
Agere
Altera
Avanex
Bookham
Colibrys
Corning
CyOptics
DiCon Fiberoptics
Emcore

Firecomms
Fujitsu
Mitsubishi Electric
NEC
NeoPhotonics
Oki Optical Components
OpLink
Opnext
Optium Corporation
Sin Yu
TriQuint
WaveSplitter Technologies




Report Methodology

This is the 277th report in a series of market research reports that provide forecasts in communications, telecommunications, the internet, computer, software, and telephone equipment. The project leaders take direct responsibility for writing and preparing each report. They have significant experience preparing industry studies. Forecasts are based on primary research and proprietary data bases. Forecasts reflect analysis of the market trends in the segment and related segments. Unit and dollar shipments are analyzed through consideration of dollar volume of each market participation in the segment. Market share analysis includes conversations with key customers of products, industry segment leaders, marketing directors, distributors, leading market participants, and companies seeking to develop measurable market share. Over 200 in-depth interviews are conducted for each report with a broad range of key participants and opinion leaders in the market segment.

About the Company

WinterGreen Research, founded in 1985, provides strategic market assessments in telecommunications, communications equipment, health care, and advanced computer technology. Industry reports focus on opportunities that will expand existing markets or develop major new markets. The reports assess new product and service positioning strategies, new and evolving technologies, and technological impact on products, services, and markets. Market shares are provided. Leading market participants are profiled, and their marketing strategies, acquisitions, and strategic alliances are discussed. The principals of WinterGreen Research have been involved in analysis and forecasting of international business opportunities in telecommunications and advanced computer technology markets for over 30 years.

About the Principal Authors

Ellen T. Curtiss, Technical Director, co-founder of WinterGreen Research, conducts strategic and market assessments in technology-based industries. Previously she was a member of the staff of Arthur D. Little, Inc., for 23 years, most recently as Vice President of Arthur D. Little Decision Resources, specializing in strategic planning and market development services. She is a graduate of Boston University and the Program for Management Development at Harvard Graduate School of Business Administration. She is the author of recent studies on worldwide telecommunications markets and the Top Ten Telecommunications market analysis and forecasts.

Susan Eustis, President, co-founder of WinterGreen Research, has done research in communications and computer markets and applications. She holds several patents in microcomputing and parallel processing. She is the author of recent studies of the Regional Bell Operating Companies' marketing strategies, Internet equipment, a study of Internet Equipment, Worldwide Telecommunications Equipment, Top Ten Telecommunications, Digital Loop Carrier, Web Hosting, and Application Integration markets. Ms. Eustis is a graduate of Barnard College.

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