KMI says fiber-optic growth is sustainable
US-based market research company KMI Research has added to the more positive outlook in the fiber-optic communications industry with a new report predicting strong growth over the coming five years.
It believes that the optical networking market will enjoy double-digit growth from 2004 through 2006, following three consecutive years of decline.
The positive outlook follows similar indications from laser chip manufacturers JDS Uniphase and Bookham Technology, key suppliers of tranmission components in the fiber-optics business (see related story), that the sector is rebounding.
Growing at a compound annual rate of 12%, the market is expected to reach $15.9 billion in 2009, up from $7.6 billion in 2003.
According to KMI, it is not just the short-haul sector that is driving growth. "The long-distance segment will show a healthy near-term bounce upward for some products, such as DWDM, because systems installed a few years back are filling up."
KMI added that although bandwidth demand is growing more slowly than in previous years, it is still sufficient to force the deployment of new equipment.
KMI s general manager Richard Mack said: "With carrier capital spending getting stronger, and with the introduction of increasingly versatile transmission equipment, the market is returning to annual growth rates of 10-20%"
"More importantly, we believe that these growth rates are sustainable," he added.
KMI s report is available via the company s web site.
