The average net margin of publicly-traded optical component and module suppliers moved into positive territory in only three out of the last seven years. In contrast, the market growth rate remained positive for six out of the last seven years. Can these vendors maintain profitability in 2014-2015 if the market's growth remains steady?
The macroeconomic environment will continue to impact the business of optical component and module suppliers, but these companies are much stronger now, compared to even two-to-three years ago. However, the optical components and module vendors remain a very small part of the global optical communications industry supply chain and their business is likely to remain volatile.
This report presents a detailed analysis of economic challenges faced by companies throughout the communications supply chain. It examines the profitability and long-term strategies of content providers as well as equipment and component manufacturers. One report section focuses on emergent equipment and component suppliers in China and includes brief profiles of several new entrants.
This report offers an in-depth look at the structure of the optical component and module industry in several market segments, including SONET/SDH, Ethernet, Fibre Channel, WDM, and FTTx. This analysis includes data on market shares of leading vendors sorted into the several categories (top 3, top 4-6, top 7-10, and other vendors), illustrating fragmentation of these market segments. Data on diversification of the top 10 leading suppliers of optical transceivers presented in the report suggest that most component suppliers remain highly specialized. Leading module vendors shared confidential sales data with LightCounting to support this study.