Revenue From 40G Market Expected To Hit $1.2 Billion By 2013

An analysis of the market for high-bandwidth 40G optical solutions by Dell'Oro Group estimates revenue from 40G solutions to hit $1.2 billion worldwide by 2013. Nortel, the leader in this high-growth segment currently holds a 41 percent share of the market.

 

Nortel's (News - Alert) 40G/100G Adaptive Optical Engine was first made available in the second quarter of 2008. Since then, Nortel has risen quickly to be the leader in 40G wavelength shipments. The report from Dell' (News - Alert)Oro shows that Nortel's share of the 40G market has steadily increased from 31 percent in the second quarter of 2008 to 41 percent in the first quarter of 2009.

 

At present, 46 service providers from across the world have signed on to deploy Nortel's 40G solution. Around one third of these providers are new Nortel optical customer opportunities. With seven successful 100G field trials announced and availability of the Nortel 100G solution planned for later this year, Nortel is the clear leader in the development of 100G solutions. Nortel also provides a clear evolution path for service providers from 10G to 40G and on to 100G.

 

The current economic slowdown has resulted in the overall worldwide optical market declining 20 percent sequentially and 11 percent year-over-year. However, the 40G market has witnessed continued growth and strength with an increase of 8 percent sequentially in the first quarter of 2009 and 400 percent year-over-year. According to Jimmy Yu, optical market analyst at Dell'Oro, they are expecting 40 Gbps revenue to grow at a 35 percent compound annual growth rate to a market size of $1.2 billion in revenue by the year 2013.

 

It is the unique ability to transport a 40G wavelength with the same reach and ROADM (News - Alert) tolerance of 10G systems, as well as the ability to travel across all types of optical fiber that has resulted in the broad acceptance of Nortel's 40G solution. The next-generation technologies from Nortel support multimedia and business-critical applications for both service provider and enterprise networks.

 

While the rest of the industry continues to develop a viable 100G solution, Nortel is able to leverage technology from its commercially available 40G solution. According to Philippe Morin, president of Metro Ethernet Networks at Nortel, the rapid adoption of Nortel’s 40G solution is giving them a jump start on 100G leadership and adding to its loyal customer installed-base.