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Fiber optics industry to reach $4.38B in '09

Posted: 15 May 2006 ?? ?Print Version ?Bookmark and Share

Keywords:fiber optic? Frost & Sullivan?

The fiber optics industry is forecasted to reach $4.38 billion in 2009, said the latest report from market research firm Frost & Sullivan. According to the World Optical Products in Fiber Optics Market report, this industry totaled $3.41 billion in 2005.

"The increasing popularity of wave division multiplexing (WDM) and dense wavelength division multiplexing (DWDM) systemsespecially those that incorporate optical emitters, amplifiers, switches, connectors and reconfigurable optical add/drop multiplexers (ROADMs)will boost this market," said Frost & Sullivan Industry Manager Deepa Doraiswamy. "The keen interest expressed by system integrators and OEMs to purchase modules rather than components, as they can integrate better into their system will also heighten this market's revenue potential."

The growth of wireless networking systems is hampering the advancement of fiber optics, which deters the demand for optical components and modules, especially in underdeveloped countries that are more suited to wireless rather than fiber optics network. Furthermore, components such as optical switches, connectors and emitters do not have a high degree of automation. As far as manufacturing is concerned, said Frost & Sullivan, this increases the recurring costs in production and hence lowers the profit margins for components vendors.

"The rate of technology development in wireless is likely to be more than that of fiber optics and this could be seen as the main restraining factor, which could mitigate the growth of optical products in future," explained Doraiswamy. "In addition, vendors in Asia Pacific are able to manufacture components at lower costs, which forces companies from the West to compromise on profits, thus damaging their morale."

To counter these challenges, said the press release from Frost & Sullivan, manufacturers need to increase their investments to improve automation in products such as optical switches, connectors and emitters, thereby attracting end users from the manufacturing industry.

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