The annual revenue of optical components and module makers has grown in each of the last five years, while the average net margin of those same companies has see-sawed back and forth between profit and loss. This report provides a holistic analysis of the global communications industry, and the factors affecting profitability at each level of the value chain. It examines the profitability and long-term strategies of traditional telecom service providers, as well as the newer internet content providers, and their respective equipment and component suppliers. The success of Chinese equipment and component suppliers is evaluated and a number of Chinese component vendors are profiled.
This report also takes a deeper look at the SONET/SDH, Ethernet, Fibre Channel, WDM, FTTx, Wireless, and Optical Interconnect market segments within the optical components industry, providing market shares of leading vendors sorted into the several categories (top 3, top 4-6, top 7-10, and other vendors), illustrating the fragmentation of these market segments. Data on the diversification of the top 10 leading suppliers of optical transceivers presented in this report suggest that most component suppliers remain highly specialized.
Many of the leading component vendors shared confidential sales data with LightCounting to support this study.