Market trends for optical amplifiers

Published by: Ovum Plc

Published: Jun. 26, 2009 - 27 Pages

Table of Contents

Executive summary

In a nutshell

Ovum view

Demand for amplification continues as does demand for lower cost

Key messages

Market led by strong suppliers

Demand complicated by array of options, favors incumbent suppliers

Waiting, watching, preparing for the amplifier market game-changer

Strong demand for optical amplifiers

Traffic grows in network core

Metro moving to 50GHz

Agility as a major amplifier requirement

40 and 100Gbps raise demand for single-channel amplifiers

100Gbps Ethernet ready to come out of the gates

100Gbps DWDM

40 and 100Gbps DWDM on a new transmission fiber (i.e., fiber carrying 40 or 100Gbps solely)

Amplification in access networks

Amplification in cable TV

Amplification for radio frequency over fiber (RFOG)

WDM PON

10Gbps PON

Optical amplifier opportunity summary

Optical amplifier component supplier review

Strength goes to suppliers who supply the pump lasers

Controlling functional modules also offer competitive advantages

Dispersion compensators for mid-stage access

ROADMs for mid-stage access

Raman amplifiers have a role in this market

Cable TV and FTTx amplifier

System vendors challenge optical amplifier suppliers

Strong pricing pressures

Strong demand for all different kinds of amplifiers

Optical amplifier supplier analysis

Incumbents dominate optical amplifier market

Optical amplifier opportunity

Ovum finds too many suppliers

Market led by Oclaro (formerly Bookham and Avanex), JDSU, and Furukawa

Cost reduction strategies

Stagnant optical amplifier suppliers

Little new competition

Raising barrier to entry

While pump lasers present high barrier to entry, their role has changed

Diverse amplifiers also challenge suppliers

Consolidation of the behemoth incumbents raises the bar — Oclaro formed from Bookham’s acquisition of Avanex

Incumbents support semiconductor optical amplifiers

Little outside investment

Nonexistent venture capital spending

Outlook, more of the same

Optical amplification led by specialization and incumbent suppliers

Incumbents need to continue to build a higher barrier to entry

New entrants or market attackers need to be comprehensive suppliers

List of Tables

Table 1: Optical amplifier opportunity summary

Table 2: Dispersion compensator suppliers by technology, typical insertion loss, and other issues

Table 3: ROADM suppliers, technology, typical insertion loss, and other issues

List of Figures

Figure 1: IP traffic in NA core network, optical equipment capacity, and cost

Figure 2: End-to-end network showing point-to-point (old) and mesh (future)

Figure 3: Schematic of representative narrowband amplifier showing discrete components

Figure 4: Pump laser suppliers

Figure 5: Schematic of representative amplifier with mid-stage access

Figure 6: Schematic of a Raman amplifier

Figure 7: Schematic of a high-power amplifier

Figure 8: Total demand for wavelength management products, 2008 and 2014 (estimated)

Figure 9: The relative strength of optical amplifier suppliers

Figure 10: Low-cost strategies of optical amplifier manufacturers

Figure 11: Erbium doped fiber amplifier suppliers and some of their other products

Abstract

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