Demand for Wireless Fronthaul Brightens Up the 2019 Optics Market



LightCounting releases September 2019 Quarterly Market Update Report and Database.



Global sales of optical transceivers reached $1.3 billion in Q2 2019 ��� up 5% sequentially, but down 2% from Q2 2018. There is a good chance that this market will post modest growth this year, consistent with our forecast, published in April 2019. Demand for Ethernet transceivers picked up, after 3 quarters of declines and the outlook for the rest of the year is improving. The market for DCI optical transport solutions is growing based on the reports by Ciena and several other suppliers. This helped to sustain sales of CWDM/DWDM transceivers and lift shipments of WSS modules to a new record in H1 2019. A surge in deployments of 4G LTE and the first 5G wireless systems was reflected in financial reports of Ericsson, Huawei, Nokia and ZTE. Increasing mobile infrastructure deployment is also evident in the shipment data for wireless fronthaul optics, collected by LightCounting from the leading transceiver suppliers, shown in the figure below. This segment is likely to reach $800 million in 2019 ��� well above our expectations.

A lot of the demand for wireless optics came from China, but South Korea and North America made sizable contributions to this market as well. This subject will be discussed in more detail at LightCounting webinar scheduled for 2pm EST on Wednesday, September 18th. LightCounting clients interested in attending should email Renee Isley (at or George S. (at ). A recording of the webinar will be also available.

The webinar will also include more details on the recovery in sales of Ethernet transceivers, but full information will only be available in the Quarterly Market Update Report database. Sales of 100GbE PSM4, LR4 and ER4 Lite modules were up�� sharply in Q2 2019. Pricing of CWDM4 transceivers seems to be stabilizing, so we should see growth in sales of these products in H2 2019. Demand for 200GbE and above (including all variants of 2x200GbE, 4x100GbE and 400GbE) optics is picking up and sales of these products are on target to exceed $200 million by the end of 2019.

The Quarterly Market Update report provides an easy-to-digest snapshot of optical transceiver growth trends, backed up with detailed quarter-by-quarter sales data collected via LightCounting's proprietary vendor survey. Performance metrics and commentary for top-tier Telecom and Internet service providers, network and Datacom equipment makers, and Optical component, and Semiconductor vendors are also included, to provide an understanding of what drives sales trends at the transceiver level. 

The report consists of approximately 100 PowerPoint slides with many charts and tables suitable for reuse in client presentations. An Excel spreadsheet is also included with the report, providing the latest 8 quarters of shipments, prices, and revenues for ~100 products spanning the Ethernet, Fibre Channel, WDM, Wireless, and FTTH segments. Quarterly revenue and spending data for 30 top CSPs and ICPs, and quarterly revenues for 22 equipment makers, 15 optical components vendors, and 17 semiconductor manufacturers is also included.

More information on the report is available at:

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Interested in meeting with LightCounting at these upcoming industry events? Email us today to schedule a meeting with our team. View our recently published reports and 2019 Research Roadmap.