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Updated: July 8th, 2008 05:26 PM CDT

Optical Component Worldwide Markets at $2.9 Billion Are Expected to Reach $7.6 Billion by 2012

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Business Wire
via NewsEdge Corporation

The actual assembly of transmitters and boards will trend to the Asian region over the forecast period. Regional variation is significant in this market evolution with the underdeveloped countries choosing the least expensive components and the more developed regions adopting components that support agile, flexible network upgrades.

A transponder is used in an optical network to transmit and receive optical signals. Integrated solutions bring key benefits to manufacturers of communications and computer equipment, such as improved product performance, reduced product size and cost, and decreased time -to-market.

Competitive alternative solutions to Electro-optical (E-O) including Electroabsorption (E/A), Indium Phosphide (InP) and Mach-Zehnder (M-Z) modulator integration and standalone solutions are being developed. Packaging is the key driver, along with the main multiple: Customers benefit by having the ability to purchase a broad array of products and solutions from a single supplier. Optical component companies seek to develop more integrated products and solutions that capitalize on experience in both opto electronic components and integrated circuits.

As the complexity of optical networks increases, integrating more optical components into network equipment enhances network performance. Equipment suppliers are coming to prefer to rely on optical component manufacturers that possess technical expertise and knowledge across a broad range of components, and are able to efficiently integrate multiple component types into a custom solution.

Consequently telecommunications equipment suppliers seek to streamline vendor qualification procedures and concentrate volume purchases. Vendors may choose to use fewer components providing strategic advantage to market leaders.


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