Growing Investments of Web 2.0 Companies Into Networking Infrastructure Adds Excitement to the Market

EUGENE, OR--(Marketwired - February 26, 2015) - LightCounting, a leading optical communications market research company, today released its semi-annual optical communications market forecast report and database. The report examines the optical industry supply chain from optical component vendors, to service providers and Web 2.0 companies, and provides a five-year forecast for sales of optical components and modules.

"2014 was a good year for the industry and expectations for 2015 are high," commented Dr. Vladimir G. Kozlov, CEO and Founder, LightCounting Market Research. "Investments in optical networking infrastructure by service providers account for the bulk of the industry cash flow, but it is the Web 2.0 companies that have accelerated deployments of the latest optical technologies."

LightCounting estimates that the top fifteen Web 2.0 vendors, included in the LightCounting Internet Index, will spend $50 billion in 2015 on servers, networks, and other infrastructure, up from $38 billion in 2014 and $30 billion in 2013. In contrast, telecommunications service provider CapEx is estimated to have grown by just two percent in 2014 and it is expected to stay flat in 2015. 

If this disparity continues, infrastructure spending by the LightCounting Internet Index companies will exceed that of the top fifteen telecommunications service providers within five-to-seven years.

The report includes:

• Analysis of trends in capital expenditures of major global carriers and Web 2.0 companies and their implications for network infrastructure expansion worldwide.
• Review of annual sales of optical components and modules based on confidential sales information provided by at least twenty leading manufacturers and interviews with their customers and suppliers.
• Detailed forecast for annual shipments and sales for more than 100 product categories of optoelectronic modules including transceivers, transponders, line cards and WSS, employed in WDM, SONET/SDH, Ethernet, Fibre Channel, FTTx, wireless backhaul and optical interconnect applications.
• The forecast database includes annual sales data for the last three years and a forecast for the next four years.

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ABOUT LIGHTCOUNTING MARKET RESEARCH
LightCounting is a leading optical communications market research company, offering semiannual market updates, forecasts, and state-of-the-industry reports based on its analysis of primary research with dozens of leading module, component, and system vendors as well as service providers and other users. LightCounting is the optical communications market's first choice source for the accurate, detailed, and relevant information necessary for doing business in today's highly competitive environment. For more information, visit: www.LightCounting.com or follow us on Twitter at @LightCounting.