Optical transport equipment market to reach $15 billion by 2018, according to Dell´Oro Group forecast

Date: Tue, 01/21/2014 - 19:32 Source: Dell’Oro Group press department

DWDM equipment revenue to grow at average annual rate of eight percent
Optical transport equipment market to reach $15 billion by 2018, according to Dell´Oro Group forecast

Jimmy Yu, Sr. Director of Optical Transport research at Dell’Oro Group

Image credited to Dell’Oro Group

In a newly released Optical Transport forecast report by Dell´Oro Group, the trusted source for market information about the networking and telecommunications industries, total optical transport equipment revenues are forecast to reach $15 billion by 2018.  Dense Wave Division Multiplexer (DWDM) equipment sales are expected to drive the majority of the optical market´s growth for the next five years.
“The most significant of a number of trends unfolding in the optical market, is the rapid expansion of 100 Gbps DWDM wavelength shipments, as its use moves beyond the core network and into the metro network,” said Jimmy Yu, Vice President of Optical Transport Market Research at Dell´Oro Group.  “This projected demand for 100 Gbps will subsequently be one of the key growth drivers for the optical market over the next five years,” added Mr. Yu.

Key Optical Market Trends 2013-2018:
1. Continued demand for capacity driving the need for DWDM equipment and specifically 100 Gbps wavelengths.  Dell´Oro Group expects the DWDM market to grow at an average annual rate of eight percent through 2018 and for 100 Gbps wavelengths to contribute the largest share of DWDM capacity shipments, approaching 80 percent by 2018. 
2. Movement towards OTN and packet transport driving the demand for optical packet platforms with OTN switching features.  Dell´Oro Group projects optical packet platform revenue to grow at a 15 percent compounded annual growth rate.
3. Ratio of equipment sales in metro optical versus core optical applications to drift over the next five years, with the majority of spending in metro applications.

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