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Introduction

The optical networking (ON) market had a mixed quarter in 3Q19 after a strong 2Q19. The global market declined by 8.2% compared to 2Q19 and increased by 0.8% compared to 3Q18.

Highlights

  • ICP spending drives NA growth. North America internet content providers (ICPs) spending for data center interconnect has driven the growth in North America Optical market.
  • Optical spending in India decreased by 48% compared to last year as some of the service providers having challenging financial positions.
  • Huawei continues to outperform. Despite US sanctions, Huawei has grown revenue year over year and share driven by 200G capable DWDM lines.

Features and Benefits

  • Assesses the technology supporting growth.
  • Learn about intercontent provider data center interconnect spending in North America.

Key questions answered

  • What are the drivers leading to North America optical networking growth?
  • What product segments drove the growth in 3Q19?
  • Why did India decline in 3Q19?

Table of contents

Summary

  • In brief
  • Ovum view

3Q19 results

  • Revenue declined in 3Q19 based on normal spending trends but grew year over year

Market share

  • Five out of the top-10 vendors posted market share growth in 3Q19

Market share changes

  • Ciena, Huawei, Adva, Fujitsu, and ZTE see annualized share gains

Vendor highlights

  • Product and market highlights for 3Q19

Regional analysis

  • Shift to higher speed optics drove the results

Product-level analysis

  • Segment overview

Market outlook

  • The ON market is on track for our latest $18.8bn forecast for 2024, driven by new customers

Appendix

  • Methodology
  • Further reading
  • Author