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(1) Global Optical Module Sales Analysis

- Nov 10, 2018 -

According to relevant survey data, sales of optical modules for large data centers in 2018 are likely to offset the decline in demand for applications from telecommunications systems. Therefore, the decline in overall optical module sales in 2018 will be limited to 3%. At the same time, market research firm LightCounting also pointed to recent growth opportunities in its latest report.

Market research firm pointed out that in the past two years, the demand for software telecom modules by Chinese system companies such as Huawei and ZTE has weakened. Both companies suffered losses due to excess inventory in 2017, but optical module suppliers point out that even if these inventories are reduced, demand has not increased. Of course, the dispute between ZTE and the US Department of Commerce is one of the reasons. ZTE is expected to cut its spending on optical modules by nearly 20% to 30% this year due to the US ban. LightCounting believes that the ban has had a ripple effect on global network construction, because operators are waiting to see what will end up.

The market research company said that, at least in part because of the experience experienced by ZTE, the two system companies and the Chinese government have implemented a policy to further build and cultivate the strength of domestic optical technology. For optical module suppliers seeking a major rebound in the Chinese market, these policies naturally do not bode well.

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