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Metro Dwdm Market Opportunities, Strategies, and Forecasts, 2003 to 2008
WinterGreen Research, Inc., Oct 2003, Pages: 285
With the growth of the Internet, demand for high bandwidth continues to increase. The ability to increase transport capacity is needed to permit development of consumer markets for video and data services. High bandwidth is needed by business to improve productivity, permit working from home, and increase supply chain efficiency.
Metro Dwdm markets are shifting as the prices for laser components come down. Optical micro components promise to include more integrated functionality, at less cost per component, increasing the efficiency of metro Dwdm systems.
Metro Dwdm brings innovative technologies to the broadband market. Platforms are evolving that extend transmission systems into access, supporting the engagement of multiple value added services on Dwdm platforms. There is a convergence of transmission and digital loop carrier platform technology.
Companies need to have a technology that combines both time-to-market and time-to-volume production. Market advantage is achieved by a sustainable product offering. Metro Dwdm represents a major market shift impacting Dwdm inventory and products, creating a differentiation between products and a major product advantage for companies with affordable lasers and components.
IP traffic is growing faster than IP service revenue. Economic law states that optical expenditure per bit must decline faster than revenue per bit. A change to the business model is needed. Service provider metro Dwdm equipment markets are stung by the fact that revenue persists to come from landline voice services. The service provider revenue per bit is down 51%. Traffic is up 113%. Revenue is up 4%.
Optical metro transport equipment markets are projected to have growth through 2008. Three optical segments: Dwdm Metro, Sonet/SDH MS, and optical switches are forecast to resume growth in 2004 and grow through 2008. Growth of these three segments will not be sufficient to offset further decline of long haul Dwdm terrestrial markets. Metro applications of optical equipment are expected to recover prior to long haul applications, as service providers continue to deploy revenue-generating connections to consumers.
Report Methodology
This is the two-hundreth report in a series of market research reports that provide forecasts in communications, telecommunications, the internet, computer, software, and telephone equipment. The project leaders take direct responsibility for writing and preparing each report. They have significant experience preparing industry studies. Forecasts are based on primary research and proprietary data bases.
Forecasts reflect analysis of the market trends in the segment and related segments. Unit and dollar shipments are analyzed through consideration of dollar volume of each market participation in the segment. Market share analysis includes conversations with key customers of products, industry segment leaders, marketing directors, distributors, leading market participants, and companies seeking to develop measurable market share. Over 200 in-depth interviews are conducted for each report with a broad range of key participants and opinion leaders in the market segment.
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