Optical IC sales heading for market windfall

27 March 2002 News

Optical networking and its supporting equipment, components, and ICs are heading towards a market windfall. Technical market research firm, In-Stat/MDR, says that with the geometric growth of the Internet, private IP networks, and B2B e-commerce, the demand for high-speed capacity, within the core of the public network is rapidly increasing. As a result, optical networking will be the norm for all but the last mile and some proponents even feel that fibre will enter the last mile more extensively.

As much of the industry's advances rely solely on those in semiconductor technology, IC vendors will enjoy a bountiful future as new networks are constructed, existing ones are upgraded and the yet untapped access and enterprise markets are penetrated.

Even though optical ICs will experience very modest growth and a slight reduction in revenues in 2002, 2003 and beyond will see positive growth, resulting in a market of almost $1,8 bn by 2006. While there is growth for all speed grades of optical ICs, without question, 10 Gig Ethernet will experience a phenomenal growth rate believes In Stat. Short Range OC-192 will have a healthy growth rate also, since in most cases, it will be very popular in the MAN as the most inexpensive SONET method for connecting separated meshes of 10 GigE-based equipment.

www.instat.com/catalog/cat-op.htm

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