Optical Transport equipment demand is forecast to be $83 billion over the next five years. This cumulative revenue is up 10 percent compared to the previous five-year period and will largely be from sales of coherent DWDM systems, according to a newly published forecast report by Dell’Oro Group.
“We slightly raised our outlook for Optical Transport equipment,” said Jimmy Yu, Vice President at Dell’Oro Group. “We believe the demand for long haul equipment is better than we had originally thought and while working on the report identified more items that could further improve future market revenues than lower them. At the end of the day, although year-to-year spending on optical equipment is lumpy, the direction for bandwidth consumption remains steady, pointing up and to the right,” added Yu.
Additional highlights from the Optical Transport 5-Year July 2023 Forecast Report:
- Optical Transport market expected to approach $18 billion by 2027.
- DWDM Long Haul forecast raised due to the growing need for network capacity and increasing use of integrated C+L band optical line systems.
- Demand for WDM equipment for metro and long-haul data center interconnect (DCI) expected to grow through forecast period with the majority of growth in long-haul systems.
- New generation of coherent DSPs to begin shipping in late-2023. By 2027, nearly one-third of shipments will be comprised of DSPs capable of transmitting 1.2 Tbps and 1.6 Tbps signals over a single wavelength.