Double-Digit Growth Forecast for Optical Networking Equipment

According to a new study by market research firm KMI Research (Providence, RI), the optical networking market will see double-digit growth from 2004 through 2006. The firm's report, "Optical Networking: Worldwide Equipment Markets Update for 2004." concludes that the market for SONET, SDH, DWDM, DXC, and OXC products, which stood at $7.6 billion in 2003, will reach 15.3 billion in 2009. The market for optical networking equipment is expected to grow at a 12-percent compound annual growth rate (CAGR) through 2009. According to Richard Mack, Vice-President and General Manager of KMI, "with carrier spending getting stronger, and with the introduction of increasingly versatile transmission equipment, the optical networking market is returning to annual growth rates in the range of 10 to 20 percent. We believe these growth rates are reasonable and 'healthy' or sustainable, given the input we've had about bandwidth requirements and budget expectations." The report is based on a survey of more than 225 individuals with network operations or purchasing responsibilities at telecommunications carriers, as well as interviews with suppliers and other research.