Optical Components Markets: 2007-Vol 1

SUMMARY

The long-promised transition of optical networking is taking place. In the public networks, 40 Gbps SONET/SDH is becoming an upgrade technology choice for carriers. Ethernet is being overhauled by the IEEE to someday become a 100 Gbps network. Fiber-to-home now has a solid business model behind it. Meanwhile, WDM is of ever growing importance, not just in the network itself, but as a core technology in transmission modules of all kinds. And the point-the-point optical networks that have dominated until now are being transformed into agile networks mediated by ROADMs.

All this means that component makers have more opportunities than they have had for years. Succeeding in the components market is no longer just a matter of low prices and meeting the required specs. Instead, there are opportunities to create genuinely innovative products that fit in with emerging standards and networking trends, yet are also quite distinctive in the marketplace.

This report discusses where the key opportunities for optical networking component makers will be found in the next few years. It focuses especially on the components that will be needed in the latest high speed networks and on important technology directions including optical integration, high-speed laser modulation, tunable components and dispersion control. Included in this report is a detailed analysis of the strategies being adopted by both large component firms and start-ups to take advantage of the next wave in networking. As with all CIR reports, this study also includes a detailed five-year forecast of the markets covered.

TABLE OF CONTENTS

Executive Summary

• E.1 Current And Future Market Environment For The Optical Components Business
  • E.1.1 Investor Confidence in Optical Components Returns
  • E.1.2 High-Volume vs. High-Value Opportunities
  • E.1.3 New Technologies No Longer Hype
• E.2 Summary Of Emerging Opportunities In Optical Telecom Components
  • E.2.1 Active Components
  • E.2.2 Passive and Other Components
• E.3 Implications For Networking Electronics
• E.4 Firms To Watch
  • E.4.1 Pure Players: Avanex, Bookham, JDSU and Finisar
  • E.4.2 Other Established Firms: Avago, CyOptics, and Japanese Firms
  • E.4.3 PON Component Firms to Watch
  • E.4.4 Other Niche Players
• E.5 Summary Of Forecasts

Chapter One: Introduction

• 1.1 Background to Report
• 1.2 Objective and Scope of Report
• 1.3 Methodology and Information Sources for Report
• 1.4 Plan of this Report

Chapter Two: Major Networking Trends: Impact on Component Technologies

• 2.1 Renewed Business Confidence Fuels New Technology
• 2.2 Components, Fiber-to-the-Home and Consumer Video
  • 2.2.1 The Video Imperative
  • 2.2.2 Impact of Consumer Video
  • 2.2.3 Fiber-to-the-x and PONs
• 2.3 Components and Corporate Networking
  • 2.3.1 10 GigE to the Server and Beyond
  • 2.3.2 Fibre Channel at 8 Gbps and 16 Gbps
• 2.4 High-Performance Computing
  • 2.4.1 Data Rate Requirements
• 2.5 Optical Networking in the Public Network
  • 2.5.1 Central Offices, POPs and Internet Exchanges
  • 2.5.2 The Revival of 40 Gbps SONET/SDH
  • 2.5.3 A Note on WDM
• 2.6 The Impact of Networking on Components: A Summary

Chapter Three: Technology and Component Trends

• 3.1 Introduction
• 3.2 Silicon Photonics and Optical Integration
  • 3.2.1 The Future Role for "Traditional" Integrated Optics
• 3.3 New Directions for Fixed Lasers and Modulators
  • 3.3.1 Optical Integration and Active Components
  • 3.3.2 Diplexers and Triplexers for PONs
  • 3.3.3 Lasers for Higher-Speed Networks
  • 3.3.4 The New Parallel Optics
  • 3.3.5 New Directions for Modulation
• 3.4 Evolution of the Detector and Receiver Market
  • 3.4.1 40-Gbps Detectors and Receivers and Beyond
  • 3.4.2 A Note on Materials, Integration and Detectors
• 3.5 The Renaissance Of Tunability
  • 3.5.1 Tunable Lasers
  • 3.5.2 A Note on Tunable Filters
• 3.6 Comments on MSA Trends
  • 3.6.1 Emerging MSAs
• 3.7 ROADM Technologies

Chapter Four: Market Analysis by Product and Five-Year Market Forecast

• 4.1 Forecasting Methodology
• 4.2 Fixed Lasers, Integrated Transceivers and Laser Arrays
• 4.3 Tunable Lasers
• 4.4 External Modulators
• 4.5 Receivers and Detectors
• 4.6 Amplifiers
• 4.7 ROADMs
• 4.8 Protection Switches
• 4.9 Dispersion Compensation
• 4.10 Filters, Waveguides and Splitters
• 4.11 Summary of Market Projections

Abbreviations and Acronyms Used in this Report

About the Author

List of Exhibits

• Exhibit E-1: Revenues from Optical Telecom Components: 2006-2012 ($ Millions)
• Exhibit 2-1: Evolution of the FTTx (Millions of Subscribers Added in Year)
• Exhibit 2-2: Evolution of the 10GigE Market by IEEE Standards (000s Ports Shipped)
• Exhibit 2-3: Evolution of the Fibre Channel Market by Speed (Millions Ports Shipped)
• Exhibit 2-4: Evolution of the SONET/SDH Market by Speed (000s Ports Shipped)
• Exhibit 2-5: Evolution of the WDM Market by Speed (000s Wavelengths Shipped)
• Exhibit 2-6: Applications and Markets for Next-Generation Networks
• Exhibit 3-1: Main Factors Shaping the Components Market in the Next Five to Ten Years
• Exhibit 3-2: Problems to be Overcome in Serial 100G Networks
• Exhibit 3-3: New Integrated Products for Parallel Solutions
• Exhibit 3-4: Selected Suppliers of PON Transceivers
• Exhibit 3-5: Strategies in the FTTx Components Market
• Exhibit 3-6: Modulator Technologies
• Exhibit 3-7:Duo-Binary, DSPK And DQPSK Modulation Format Characteristics
• Exhibit 3-8:Key Receiver Parameters at 10 and 40 Gbps
• Exhibit 4-1: Evolution of the Fixed Laser Market by Technology/Volume (000s of Lasers Shipped)
• Exhibit 4-2: Evolution of the Fixed Laser Market by Technology/Value ($ Millions)
• Exhibit 4-3: Evolution of the Fixed Laser Market by Networking Type ($ Millions)
• Exhibit 4-4: Evolution of the Tunable Laser Market by Speed
• Exhibit 4-5: Evolution of the External Modulator Market by Speed
• Exhibit 4-6: Evolution of the Receiver Market by Speed and Networking Type ($ Millions)
• Exhibit 4-7: Evolution of the Amplifier Market by Type of Amplification Technology
• Exhibit 4-8: Evolution of the ROADM Market by Type of Technology Platform
• Exhibit 4-9: Evolution of the Optical Protection Switch Market by Technology Platform
• Exhibit 4-10: Evolution of the Market for Dispersion Compensation ($ Millions)
• Exhibit 4-11: Evolution of the Market for Dispersion Compensation
• Exhibit 4-12: Evolution of the Market for Filters, Waveguides and Splitters
• Exhibit 4-13: Evolution of the PON Splitter Market
• Exhibit 4-14: Revenues from Optical Telecom Components: 2006-2012 ($ Millions)