• Categories:Industry News
• Time of issue:2022-06-15

(Summary description)      Dell'Oro analyst Jimmy Yu recently shared his latest analysis on the competitive landscape of global optical transmission equipment suppliers 25G SFP-DD PON OLT.       By most measures, the optical transmission market is very healthy. Market revenues are just over $15bn and have grown by an average of 5% a year since 2003, the worst year for optical transmission. If you look at WDM systems alone, the sector is growing at an annual rate of 12%. The optical transmission equipment industry does not have the highest profit margins of any industry, but neither does it have the lowest 25G SFP-DD PON OLT.       Here are the analysts' most interesting findings about the vendor landscape:       1. There are 23 major suppliers in the world actively selling optical systems. Nine are based in North America, seven in Europe/Middle East, six in Asia Pacific and one in Latin America.       2. Of the 23 suppliers, 10 develop some optical devices either internally or through sister companies (subsidiaries or part of enterprise groups).       3. The 10 optical device development suppliers are also among the top 10 in the optical transmission industry, with a combined market share of 97%.       4. Of the top 10 suppliers, 5 compete on technology. That said, five companies have invested more in R&D to develop the latest coherent DSPS and photonics with a view to being the first to bring the latest coherent wavelength technology to market.       5. The five suppliers competing in technology have a combined market share of 70%. What's more, these five companies account for 90% of the faster growing 400+Gbps wavelength shipments and 90% of the business related to Internet content providers.       Thus, while there are 23 optical system suppliers in the industry, they are located in different parts of the world and have a certain advantage when selling to local customers. Moreover, 10 of the 23 suppliers have the vast majority of the market, with half vying for technological leadership 25G SFP-DD PON OLT.       What about the 13 suppliers vying for a 3 per cent market share? Each of them will say they are pushing for the full $15 billion. However, given that 70% of the market is held by technology leaders, analysts put the SAM(available services market) of these 13 vendors at close to $4 billion 25G SFP-DD PON OLT.       Second, these companies are not all the same. Some companies are poised to take some market share, while others are just hanging on or getting close to exiting. The remaining 13 companies are evaluated as follows: four are growing, four are stable and five remain stagnant. This means that, in practice, the number of optical transmission providers competing could be closer to 18 a year 25G SFP-DD PON OLT.       Finally, Jimmy Yu says the number of suppliers was closer to 30 when he first evaluated them a decade ago. It took 10 years to go from 30 to 23. Perhaps, in another decade, there will be fewer than 20 suppliers 25G SFP-DD PON OLT.