Asia Pacific is not the growth driver of the fiber optic network market in 2011

OVUM's latest forecast report * stated that the optical fiber network market in Asia Pacific in 2016 was only $ 6.4 billion, because this overheated market is going through a cooling period.

However, independent telecommunications analysts warned that although the Asia-Pacific market had a 4% compound annual growth rate (CAGR) between 2010 and 2016, this could not be compared with the astonishing 25% growth rate reached between 2005 and 2010.

OVUM data shows that the Asia-Pacific market shrank by 2.2% last year, and will shrink further by 3.2% in 2011, although the reasons are different. Ian Redpath, chief analyst at Irving, said: The contraction in 2010 was due to the recession of the Japanese market and the freezing of the market by the Indian government, but the Chinese market is growing. As for 2011, we predict Japan and India will grow again, but China will slow down, because the market overheating requires a short cooling period.

According to OVUM research, China will not hand over the second highest contribution to the global fiber optic network market, but its contribution in 2011 is unlikely to increase. At this point, no other country can replace China's status or overcome its rapid growth. It is expected that the United States and the Nordic countries will have stable performance and good growth in 2011. When another construction cycle comes, such as 4G wireless, ultra-high-speed data networks for enterprises, or other new services, China may once again experience unexpected growth.

OVUM's global forecast report shows that the market has improved significantly compared to the recession, but it is not a strong rebound. Redpath added: We expect another year of sloppy market conditions, and North America will continue to accelerate development this year; Europe, the Middle East and Africa (EMEA) has shifted from recession to moderate growth; and the Asia-Pacific region has begun to fall back slightly.

OVUM predicts that North America will have a steady growth of 12% from 2011 to 2012, higher than the 7% in 2010. Redpath said: Emerging technology is the growth driver of North America. We expect telecom operators and non-telecom operators to drive the popularization of 100G network construction.

In 2010, the EMEA market shrank by 10%. OVUM Owen predicted a turnaround in 2011 with a 3% growth, and the compound annual growth rate between 2010 and 2016 was 5.5%. Redpath said: "EMEA's developing economies still need infrastructure, while advanced economies are getting rid of the two-year long recession and starting to update their networks.