North America was the sole bright spot in the optical network business in the third quarter of 2015, according to new research from IHS.
Having surged 21 percent higher in this year’s second quarter, global spending on optical network equipment slid 10 percent lower in 3Q 2015. Compared to a year ago, the market is down 1.7 percent, IHS said.
North America was the only major world region to post positive year-over-year results (+3 percent).
“We assume this is a short-term setback and the recovery will continue,” said IHS senior research director for IT and networking Alex Green in a press release. “However, we will monitor this closely.”
Optical Network Spending
Other 3Q’15 optical equipment spending highlights from IHS include:
- WDM equipment spending grew 4 percent worldwide in 3Q15 from a year ago
- Global spending on SDH/SONET optical hardware dropped 27 percent in 3Q15 from the year prior, and is forecast by IHS to decline from $2.17 billion in 2014 to just over $500 million by 2019
- All annual growth in optical network hardware market going forward will come from the WDM segment, which IHS predicts will top $6.8 billion in 2019
- Asia Pacific, the largest optical network hardware market in the world, saw flat spending (-0.2 percent) in 3Q15 from a year ago, as Japan has yet to ignite the 100G engine
- EMEA (Europe, Middle East, Africa) and CALA (Central America-Latin America) posted the largest declines in optical equipment spending