Network operators’ spending on FTTx fiber optic equipment is going to reach a new high in 2015, according to new market research from Ovum. FTTx spending on optical equipment will exceed $1 billion this year following a record $953 million in 2014.
Spending on FTTx optical components will stay strong though it will drop to $985 million in 2016, Ovum forecasts. Strong demand for passive optic networking (PON) equipment is driving growth. Uptake of FTTx optics by Chinese carriers in particular is fueling growth.
“Numerous positive factors are driving the FTTx optics market to new levels, including FTTH network deployments by China Mobile and the continued network builds by China Telecom and China Unicom,” Julie Kunstler, report author and Ovum principal analyst, intelligent networks and components team, commented.
FTTx network deployments by North American multiple service operators (MSOs), telcos and the Google Fiber expansion are also adding to growing FTTx optics spending. Deployments are also proceeding in Europe, and the Middle East. Small deployments are taking place in South and Central America and Africa.
Ovum’s latest forecast excludes large FTTx deployments in large and heavily populated India, Brazil and Indonesia “Large deployments in these countries would provide a significant uptick to the units forecast and consequently to revenues,” Kunstler pointed out, “as would faster deployments of next-gen PON because the ASPs for next-gen PON optics are higher than those for non-next-gen.”
Report highlights include:
- Total OLT transceivers are forecast to reach 6.5 million in 2015, an increase of 19% on 2014.
- Next-gen OLT transceivers are forecast to represent just over 12% of the total OLT transceiver market in 2020, with 10G EPON OLTs representing the largest segment within next-gen PON.
- The total ONT transceiver/BOSA market is forecast to exceed 71 million in 2015, an increase of 18% from 2014.
- Next-gen ONT transceivers/BOSAs are forecast to represent just over 9% of the total ONT transceiver/BOSA market in 2020 with 10/1 and 10/10 EPON ONTs representing the largest segment within next-gen PON.
Slowdowns or cut-backs in the FTTx deployment plans of Chinese network operators could have a negative impact on the growth Ovum forecasts, the market research company points out.
Kunstler notes that forecast strong growth, “benefits Japanese optical sub-component vendors such as laser and lens manufacturers. Meanwhile, the wireline broadband FTTx market upswing is having a positive impact on component and equipment vendors.”