Communications optical products are targeted to telecommunications service providers, wireless operators, cable operators, NEMs, and enterprises. The vendors are leveraging core networking and optical technology expertise. They are positioned to deliver high-powered commercial lasers for manufacturing applications and expand into emerging markets, including gesture—recognition solutions for consumer electronics. Increasing commoditization of previously differentiated products remains a challenge for vendors. Commoditization has a negative effect on average selling prices and profit margins. Execution challenges limit revenue opportunities and harm profitability, market opportunities. Customer relations remains a challenge. The market research study provides insight into market driving forces, assessment of market opportunities, market share analysis, and market forecasts.