Home > Back to Publisher > Report Information

Market Share: 1Q09 optical networks, global and regional

Ovum Plc
August 7, 2009
50 Pages - SKU: OV2482176

Abstract Table of Contents Search inside this report Related Reports

Huawei blew the doors off what is typically a seasonally slow quarter by posting $790 million in optical networking (ON) revenues compared with traditional market leader Alcatel-Lucent’s $639 million. The Chinese and Indian markets are on fire while North America remains ice-cold, which, coupled with the strength of the US dollar compared with the euro, has helped Huawei and ZTE and hurt Alcatel-Lucent, Nortel, Nokia Siemens, Cisco, and others. Spending of $3.5 billion for the quarter is largely in line with our $15.4 billion forecast for the year.

Executive summary: In a nutshell; Ovum view; 1Q09 quarterly results; Changes to our ON share reporting, commencing 1Q09; Global spending down 18% from 4Q08 and 9% from 1Q08; Key messages; Battle of the titans: Huawei upsets Alcatel-Lucent to grab the 1Q09 lead; Alcatel-Lucent hangs onto the annualized share lead…for now; Changes in top ten market positions: ZTE and Ciena move up, Nokia Siemens and Tellabs move down; Macroeconomic malaise, differentially severe in North America and western Europe, is a significant factor in share changes…; …but it’s not the only factor: strategy matters; Market share — global; Spending shifts to emerging markets and WDM segments continue to shake up the vendor field; Market share changes; Analysis of quarterly results; Market growth and outlook; Strong 1Q09 spending in China and India raise Asia-Pacific spending results above expectations so far in 2009; Regional analysis — all regions; Asia-Pacific spending grows as a slice of global, largely at the expense of North America; Product-level analysis; Segment overview; Challengers’ interest in SLTE market grows despite lumpy spending and Alcatel-Lucent’s solid control of the top spot; Regional analysis — Asia-Pacific; China drives 31% year-over-year growth in AP; mobile spending pushes aggregation back above 60% of total; Market share changes; Analysis of quarterly results: Huawei even more dominant than usual, as race for second place continues among Alcatel-Lucent, ZTE, and NEC; Subregional Asia-Pacific results; Market growth and outlook; 2009 spending on track with forecast; Product-level analysis; Aggregation segment proves resilient due to wireless carriers, even as CPO adoption is slow; ROADM-based metro WDM network builds continue; Regional analysis — EMEA; 1Q09 spending down 16% year over year; market leader Alcatel-Lucent just slightly ahead of Huawei for the quarter; Market share changes; Analysis of quarterly results: Huawei and vendors with metro WDM strength did well in 1Q09, but Alcatel-Lucent still has commanding lead; Subregional EMEA results; Market growth and outlook; 2009 spending on track with forecast; Product-level analysis; WDM continues to hold up relatively well as 40G buildouts begin; CPO and ROADM segments account for roughly 10% of total spending combined; Regional analysis — North America; Market continues to slide as spending remains weak; 1Q09 market retreats to lowest level in 15 quarters; Market share changes; Analysis of quarterly results: Fujitsu zeros in on Alcatel-Lucent’s lead; Market growth and outlook; North American ON spending hampered by the economic slowdown; market contraction spills over into 1Q09; 2009-14 outlook; Product-level analysis; 1Q09 saw broad-based revenue declines in market segments; metro ROADM and 40G are driving share shifts; Regional analysis — SCA; Small SCA regional market tumbles more than global average sequentially, but less compared with 1Q08; Market share changes; Despite lumpy spending patterns, share trends show less movement and volatility than in other markets; Market growth and outlook; SCA ON spending hampered by the economic slowdown and financing uncertainty, but upside coming from Chinese vendor financing; 2009-14 outlook; Product-level analysis; SCA WDM spending showing more strength than aggregation and bandwidth management
List of Tables: Table 1: Analysis of quarterly results, global ON; Table 2: 1Q09 global ON spending versus revised 2009 forecast; Table 3: Analysis of quarterly ON results, Asia-Pacific; Table 4: Market share by subregion, Asia-Pacific ON, 1Q09; Table 5: 1Q09 Asia-Pacific ON spending versus revised 2009 forecast; Table 6: Product segment-level market assessment: Asia-Pacific; Table 7: Analysis of quarterly ON results, EMEA; Table 8: Market share by subregion, EMEA ON, 1Q09; Table 9: 1Q09 EMEA ON spending versus revised 2009 forecast; Table 10: Product segment-level market assessment: EMEA; Table 11: Analysis of quarterly ON results, North America; Table 12: 1Q09 North American ON spending versus revised 2009 forecast; Table 13: Product segment-level market assessment: North America; Table 14: 1Q09 SCA ON spending versus revised 2009 forecast; Table 15: Product segment-level market assessment: SCA
List of Figures: Figure 1: Global ON market revenues by quarter, 2Q07-1Q09; Figure 2: Foreign exchange shifts complicate market analysis; Figure 3: Comparison of annualized ON market share for the top five global vendors; Figure 4: Market share (rolling 4 quarters), global ON; Figure 5: Market share gains and losses, global ON; Figure 6: Global ON market by region, rolling 4 quarters; Figure 7: Global ON market by segment, rolling 4 quarters; Figure 8: Rolling 4Q spending in aggregation vs. metro WDM, global; Figure 9: Market share (rolling 4 quarters), Asia-Pacific ON; Figure 10: Comparison of annualized ON market share for the top four Asia-Pacific vendors; Figure 11: Market share gains and losses, Asia-Pacific ON; Figure 12: Market share (rolling 4 quarters), EMEA ON; Figure 13: Comparison of annualized ON market share for the top four EMEA vendors; Figure 14: Market share gains and losses, EMEA ON; Figure 15: Market share (rolling 4 quarters), North American ON; Figure 16: Comparison of annualized ON market share for the top four North American vendors; Figure 17: Market share gains and losses, North American ON; Figure 18: Comparison of annualized ON market share for the top four South and Central American vendors

Market Share: 1Q09 optical networks, global and regional

Share this report

Other tasks

Research Assistance

Related Markets

Fiber Optics Reports

Free Alert Me service