The Dell’Oro Group is forecasting the Optical Transport market, largely comprised of DWDM systems, to expand in 2020 and for the next five years, reaching nearly $18 billion.
Some highlights from Dell’Oro’s Optical Transport five-year forecast:
- By 2024, nearly 30 percent of wavelength shipments will be from an 800 Gbps-capable line card. More than half of these line cards are expected to be used at 400 Gbps.
- The next wavelength speed following 800 Gbps will be 1200 Gbps (1.2 Tbps). Based on the timing of past coherent DSP introductions and first-line card shipments, we anticipate 1.2 Tbps-capable line cards to enter the market in the 2023-2024 time period (but more likely in 2024).
- Demand for Optical Transport gear for data center interconnect (DCI) is expected to take a turn in the near future.
- Disaggregated WDM transponder unit sales are a bright spot of growth, annually growing at a double-digit percentage rate.
- 400ZR will moderate the market’s growth.