Dell’Oro: WDM Sales Drive Optical Transport Equipment Market in Q1

The Optical Transport equipment market reached $2.8 billion in the first quarter of 2015, according to a new report from Dell’Oro Group. WDM equipment sales accounted for the majority of the optical market’s growth. In the quarter, the total WDM market, which comprises 76 percent of the optical market’s revenue, grew five percent year-over-year.

“One of the main drivers for WDM equipment demand is the interconnection of data centers, which are on the rise as users increase their consumption of content such as video,” said Jimmy Yu, Vice President of Optical Transport research at Dell’Oro Group. “Of greater interest in the optical market is the changing customer type, as more of these data center interconnects (DCI) are purchased directly by the enterprise rather than as a service from an operator. We believe approximately 12 percent of WDM revenues in the first quarter were generated from data center interconnection, purchased directly by enterprise customers,” added Mr. Yu.