Optical transport revenue growth exceeds expectations – report

News and Business

According to a recently published report from Dell’Oro Group, Optical Transport equipment revenue grew 5% year-over-year in 2Q 2023. This was the third consecutive quarter that the optical market growth rate topped estimates. The analyst says the optical transport market revenue grew 5% year-over-year in 2Q 2023 to a little over US$4.0 billion. The better-than-expected revenue was due to higher DWDM Long Haul and Multiservice Multiplexer revenue.

It adds that the largest global WDM suppliers in the trailing four quarter period were Huawei, Ciena, Nokia, ZTE, Infinera, and FibreHome. Among these vendors, Nokia and FibreHome gained the most market share compared to the previous year period. FibreHome’s optical revenue grew at the highest rate among the vendors at over 30% year-over-year.

“It was another great quarter for optical system vendors,” said Jimmy Yu, vice president at Dell’Oro Group (pictured). “Ever since component supply eased up, system manufacturers have been able to deliver more products to their customers that sat in backlog. As a result, optical revenues have increased at a faster rate than expected. With that said, some customers are signalling a need for a little pause after receiving these deliveries. Therefore, even though the results in the first half of 2023 were higher than expected, we are holding the full year 2023 outlook at 4%, believing year-over-year growth will slow in the back half of the year,” added Yu.

The Optical Transport Quarterly Report covers manufacturers’ revenue, average selling prices, and unit shipments (by speed including 100 Gbps, 200 Gbps, 400 Gbps, and 800 Gbps).  It also tracks DWDM long haul, WDM metro, multiservice multiplexers (SONET/SDH), optical switch, optical packet platforms, data centre interconnect (metro and long haul), and disaggregated WDM.

For more information, visit www.delloro.com