A good year for disaggregated DWDM equipment market – report

News and Business

According to a recently published report from Dell’Oro Group, disaggregated DWDM systems revenue outperformed the broader optical transport market in 2Q 2021, growing 36 % year-over-year while the total WDM market was nearly unchanged from the year-ago quarter. As a result of the strong quarter, the forecast for disaggregated DWDM systems was further raised.

The report also found that the top manufacturers by revenue share for disaggregated transponder units were Ciena, Infinera, and Cisco. It also found that the immediate need to migrate to higher speed, better performing transponder technology has been one of the main drivers for using disaggregated transponder units. As a result, 400+ Gbps wavelengths were the fastest-growing line speeds on these systems. Looking ahead, Dell’Oro raised its forecast for disaggregated transponder units due to the higher rate of adoption outside of hyperscalers. It is now forecasting revenue for this equipment type will surpass US$2 billion this year.

“Disaggregated DWDM systems outperformed the broader market, demonstrating the growing adoption of this platform type,” said Jimmy Yu, Vice President at Dell’Oro Group. “Really what we see is that this type of platform architecture, where transponder units are independent of the line systems, is being more widely embraced beyond the Internet content providers. Also, it is no longer just for metro applications. Recently, the highest growth rates have been from long-haul applications,” added Yu.

For more information, visit www.delloro.com