Global Optical Switching Market to Reach $15 Billion by 2004

Pioneer Consultingemand for optical switching systems in the global telecommunications marketplace is going to surge upward from the current value of $543 million to reach $15.0 billion by 2004, according to a report by <%=company%> (Cambridge, MA). In North America and Europe, where DWDM-based fiber optic networks are being rapidly deployed, the need for optical switching systems will create a 5-year, $31 billion market opportunity for optical switching systems vendors.

In North America, the market for these systems will expand from a projected $427 million 2000, to over $10 billion in 2004. In Europe the market is forecast to grow from $116 million in 2000 to over $4 billion in 2004. In total, over $31 billion will be spent in the coming five years in North America and Europe on optical switching systems.

Vendors bringing optical switching systems to market in 2000 include Ciena, Cisco Systems, Corvis, Lucent, Nortel Networks/Qtera, Sycamore Networks, and Tellium. Others will follow as this market develops, while at the component level, device manufacturers will have significant opportunities to create all-optical switching fabrics, transparent optical interfaces, and more sophisticated provisioning and management systems.

"The rules are changing," said Pioneer analyst Scott Clavenna. "Capacity is not enough today; rather the ability to manage this new optical layer…will be the key to success in the coming decade.''

For more information on "Core Optical Networks: Market Opportunities for Optical Switching Systems in DWDM Networks," contact Pioneer Consulting at 617-441-3900.

Edited by Kristin Lewotsky