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5 April 2011 
Optical transceiver sales worldwide will exceed US $3 bilion in 2011 (€2.11 billion), an increase of 10%, according to market research firm LightCounting. Growth will be slower than 2010, however, when optical transceiver sales grew 35%. Market research firm Ovum reports similar market dynamics for optical components where the global market also grew by 35% in 2010 to reach $5.6 billion.
 
The 2010 optical components growth is the highest in a decade. However, Ovum stresses that the 2010 growth is not a repeat of the 1999-2000 telecom bubble. Daryl Inniss, vice president and practice leader, components, says that the growth will continue in 2011 but at 15%.
 
LightCounting highlights sales of optical transceivers for wireless infrastructure, which more than doubled in 2010, driven by 3G wireless network deployments, and the first LTE networks to be deployed in 2011-2012 will continue to drive demand for higher data-rate optics. 
 
Moreover, demand for 40Gbps components and modules remained strong in early 2011, while deployments of 10 Gigabit Ethernet optical interfaces in data centers will account for the bulk of datacom transceiver sales in 2011.
 
Both LightCounting and Ovum attribute the recent strong growth to the latest wave of telecom infrastructure expansion. In the last quarter of 2010, the optical components market grew by 5%, the seventh consecutive quarterly gain. The strongest growing segments of the market were ROADMs and filters, transmission discrete and long-distance devices. Ovum said the market for ROADMs and filters was up 46% in 2010 compared to 2009; LightCounting reports that sales of wavelength-selective switches used in ROADMs jumped by 47% in 2010.
 
Ovum said that many vendors performed strongly in the fourth quarter of 2010, led by JDSU, which increased its revenues by nearly 80% compared to the previous year and 17% sequentially.