A new report by Dell’Oro Group says the total WDM market, comprising both metro and long-haul applications, is forecast to reach $8 billion for the full year 2012 – exceeding the telecom high point of 2000 for the first time.
“It was the year 2000 when the WDM market peaked at $7.7 billion and then promptly burst downwards to $1.8 billion,” said Jimmy Yu, vice president of optical transport research at Dell’Oro Group. “Since then, it’s taken 12 long years to reach this milestone but we are finally on a path to best this previous revenue peak and to attain a new record revenue marker for the WDM market.”
The total WDM market grew by 14 percent year-over-year in the third quarter of 2012 and Dell’Oro is forecasting that growth will continue unabated as a larger number of service providers roll out 40 and 100-Gbps DWDM wavelengths to meet the rising demand for bandwidth.
Manufacturers Huawei, Ciena, and Alcatel-Lucent dominated the market in 3Q 2012, says the analyst firm. Fujitsu and NEC picked up the number four and five spots.
At first glance Dell’Oro’s statement on the health of WDM sales appear to contradict the findings of other market research firms. Ovum and Infonetics both reported that the optical network hardware market has been contracting in 2012. However, analysts also remarked on the uptick in WDM sales; it is the collapse of SONET/SDH equipment revenues that has dragged down the overall market.
“Investment in new WDM gear is growing, but it isn’t growing fast enough to offset the accelerated declines in SONET/SDH,” said Andrew Schmitt, principal analyst for optical at Infonetics Research.
By Pauline Rigby
Dell’Oro Group Press release: Total Wavelength Division Multiplexing (WDM) Equipment Market Revenues Projected to Surpass Year 2000 Peak
Infonetics press release: Tepid WDM growth, slumping SONET/SDH bog down optical market in 3Q12