As networks are implemented for triple play, they become complex, driving the need for fast transport based on optics. Manufacturers of communications and computer equipment are increasingly value the ability to provide integrated solutions for both opto-electronic components and integrated circuits.
Growing capabilities in combining opto-electronic components and integrated circuits into single products position the market for rapid growth. Competitors seek to offer manufacturers of communications equipment a broad portfolio of opto-electronic components that are designed to operate together to create integrated solutions. Companies participating in the optical component industry are combining multiple devices into single products, often referred to as modules, to deliver to customers functions traditionally performed by a number of separate opto-electronic devices.
Integrated product offerings combine integrated circuits and supporting software as part of a complete solution. Advanced system-on-a-chip capabilities allow users to integrate, on a single integrated circuit, multiple functions that required multiple integrated circuits.
Optical components serving the 10 Gbps space are not the only products needed. The 2.5 Gbps space is very attractive, with 40 Gbps to make an appearance this year in 2006. The main application dynamics are optical systems used with high-speed transmitters that are required to transmit longer distances.
The actual assembly of transmitters and boards will trend to the Asian region over the forecast period. Regional variation is significant in this market evolution with the underdeveloped countries choosing the least expensive components and the more developed regions adopting components that support agile, flexible network upgrades.
A transponder is used in an optical network to transmit and receive optical signals. Integrated solutions bring key benefits to manufacturers of communications and computer equipment, such as improved product performance, reduced product size and cost, and decreased time -to-market.
Competitive alternative solutions to Electro-optical (E-O) including Electroabsorption (E/A), Indium Phosphide (InP) and Mach-Zehnder (M-Z) modulator integration and standalone solutions are being developed. Packaging is the key driver, along with the main multiple:
Customers benefit by having the ability to purchase a broad array of products and
solutions from a single supplier. Optical component companies seek to develop more
integrated products and solutions that capitalize on experience in both opto-electronic
components and integrated circuits.
As the complexity of optical networks increases, integrating more optical components
into network equipment enhances network performance. Equipment suppliers are
coming to prefer to rely on optical component manufacturers that possess technical
expertise and knowledge across a broad range of components, and are able to
efficiently integrate multiple component types into a custom solution.
Consequently telecommunications equipment suppliers seek to streamline vendor
qualification procedures and concentrate volume purchases. Vendors may choose to
use fewer components providing strategic advantage to market leaders.
The converged voice / data applications mean that the voice networks transition to
data networks that now include video transport. Optical component worldwide markets
at $2.9 billion are expected to reach $7.6 billion by 2012. Integrated optical
components include amplifiers, lasers, receivers, transmitters, and transceivers and
transponders.
Integrated optical components include amplifiers, lasers, receivers, transmitters, and
transceivers and transponders. Markets are growing in response to the need to have
more efficient networks that are high speed and agile. Flexibility and re -configurability
are aspects of optical based networks.
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