WDM to Drive Optical Transport Market to $15 Billion by 2019

Created July 16, 2015
News and Business

In a newly released Optical Transport forecast report by Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, wavelength division multiplexer (WDM) equipment demand is expected to drive the Optical Transport market to $15 billion by 2019.

“The network still needs a lot of raw bandwidth and WDM is the best equipment to deliver that,” said Jimmy Yu, Vice President of Optical Transport Market Research at Dell’Oro Group.

“While high demand for long haul equipment will continue, the biggest growth that we are projecting is in metro applications.

The majority of metro equipment purchases will still be made by telecom service providers, expanding their metro network capacity for higher speed services, but we also see a strong trend towards enterprises such as Internet content providers and financial institutions procuring and installing their own high speed 100 Gbps links.

This trend is being powered by the increasing importance of data centers to a company’s core business,” added Mr. Yu.

Select information from the recently published Optical Transport forecast report:

– WDM Metro revenue is forecast to grow at a 10 percent compounded annual growth rate (CAGR)

– Over 75 percent of WDM network capacity installed across the next five years will be from 100 Gbps wavelengths

– Demand for 200 Gbps wavelengths is expected to ramp in metro applications this year and is forecast to contribute nearly 25 percent of WDM Metro equipment revenue by 2019.

The Dell’Oro Group Optical Transport 5-Year Forecast Report offers a complete overview of the Optical Transport industry with tables covering manufacturers’ revenue, average selling prices, unit shipments, Tributary/Line or Wavelength shipments (by speed up to >100 Gbps).  The report tracks DWDM long haul terrestrial, WDM metro, multiservice multiplexers, and optical switch equipment.

See Also: Dell’Oro Group Press Release

Per Danielsen

This article was written
by Per Danielsen

has 35 years of experience in optical communications and is now working freelance writing about optical communications and other telecom related topics. He also serves as chairman of the ECOC Market Focus program committee.