Supply issues hit optical transport growth – report

Created November 23, 2022
News and Business

According to the recently published Optical Transport Quarterly Report from Dell’Oro Group, optical transport equipment revenue declined 6 % year-over-year in the third quarter of 2022, with the supply of components continuing to weigh down the growth potential of the optical equipment market.

“The main culprit for this market revenue decline was the lack of component supply needed to make finished goods,” said Jimmy Yu, vice president at Dell’Oro Group (pictured). “Optical vendors have a growing amount of backlog due to higher demand for DWDM equipment but are not able to deliver completed systems when they are short on one component or two. Another factor lowering the market revenue is the strengthening US dollar. Since the market revenue is based on US dollars, most sales in Europe and Asia are converted to fewer US dollars and reducing the reported market size,” added Yu.

The report also finds that the total WDM equipment market, comprising Long Haul and Metro systems, declined 5 % year-over-year in the quarter. However, the company estimates that on a constant currency basis, the market revenue grew 0% to 1 % in the same time period. Among the regions in the report, North America remained slightly positive while Europe declined at the highest rate. Revenue from the European region declined due to the lower conversion of euro currency to US dollar and the declining demand caused by the Russia-Ukraine war.

The report offers in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, and unit shipments (by speed including 100 Gbps, 200 Gbps, 400 Gbps, and 800 Gbps).  The report tracks DWDM long haul; WDM metro; multiservice multiplexers (SONET/SDH); optical switches; optical packet platforms; data centre interconnect (metro and long haul) and disaggregated WDM.

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This article was written
by Peter Dykes

Peter Dykes is a independent telecoms and technology journalist who has over that last 30 years written for a wide range of B2B publications and companies. A former BT engineer, he specialises in networks and associated support systems. He is currently Editor of Optical Connections.