Telecom Laser Diode Market to Grow 50% in 2000
MOUNTAIN VIEW, CA. The worldwide market for laser diodes for telecommunications applications is forecast to grow from $1.95 billion in 1999 to $2.92 billion in 2000, a growth of 50% in one year, according to Telecom Laser Diode Market Review and Forecast-2000, a report just released by Strategies Unlimited (Mountain View, California), a Silicon Valley-based optical networks market research firm. The market will reach $5.35 billion in 2004, for a compounded growth rate of over 22% per year. The report analyzes the market for laser diodes for different applications, device types, levels of integration, wavelengths, and data rates.
Laser diodes are a key component in local and long-distance telecom networks, as well as in cable television distribution systems. The lasers are used in these systems as transmitters into the optical fiber, and also as high-power "pump" sources to drive the optical amplifiers used along long-distance routes. The performance requirements on laser diodes for these applications are considered exceptionally demanding, and especially for the lasers used in transcontinental cables.
While much has been made of the market for WDM components and equipment, a relatively small number of lasers actually are used to launch signals that are multiplexed onto one fiber for WDM. Long-reach lasers represent the higher priced and high growth segment of the market. For example, unit sales of lasers used for transmission of 10 Gbps signals in telecom systems grew 250% in 1999 alone. Some new products, such as tunable lasers, promise to seize a sizable share of specific market segments by 2004.
The strong growth in revenue will continue to occur simultaneously with steeply falling prices and even stronger growth in unit sales. Despite shortages in many product areas in the industry, equipment makers have been able to secure ever-lower prices for specific products. Suppliers have been able to meet these expectations, however, since the sharp growth in unit sales is bringing new economies of scale and experience in an industry unaccustomed to such large volumes.
Also, while the prices are falling in specific product lines, a complex evolution to new products is helping to maintain the average price for various product categories. For example, transmitters continue to integrate new features and improve performance every year, bringing greater value.
In this interesting twist, lasers and optical fibers in telecom systems are not necessarily competing against electronics and copper systems anymore. Rather, lasers will be competing against optical switches that promise to reduce the total systems costs further. These new "transparent" systems will only be successful, however, if they can reduce costs below those of the lasers and electronics. With the rapidly expanding volumes in the industry today, this will pose a formidable challenge for both strategies as carriers look to the next generation of telecom systems.
The report profiles 40 suppliers of laser diode modules around the world, including market share estimates. North America currently leads the world in both supply and consumption of laser diodes for telecommunications applications, with over 50% of the revenues going to North American manufacturers.
Telecom Laser Diode Market Review and Forecast-2000 is a 222-page report that reviews the applications, markets, technology, and suppliers of laser diodes for telecom applications. The report is available for immediate delivery at a price of $6,950. For more information, contact Strategies Unlimited on +1 650 941-3438 (voice) or +1 650 941-5120 (fax), e-mail at info@strategies-u.com, or check the company s web site at http://www.strategies-u.com.
Founded in 1979, Strategies Unlimited provides market intelligence for the optical networks, optoelectronic, RF/wireless, compound semiconductor, and photovoltaic components industries. The company is based in Mountain View, California.
E-mail: info@strategies-u.com
Web site: http://www.strategies-u.com
