Optical transport market to approach $19 billion by 2016

Date: Fri, 04/20/2012 - 15:32 Source: Dell’Oro Group press department

DWDM transport forecast to grow at 10% CAGR
Optical transport market to approach $19 billion by 2016 Jimmy Yu, Vice President of Optical Transport research at Dell’Oro Group

In a newly released Optical Transport forecast report by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, total worldwide Optical Transport equipment revenues are forecast to grow to nearly $19 billion by 2016. Furthermore, the DWDM Transport market is expected to grow at a 10% compounded annual growth rate (CAGR) over the next 5 years, reaching $12 billion.
“The demand for optical equipment and DWDM systems is due to what appears to be an endless need for more backhaul capacity in both fixed and mobile broadband networks,” said Jimmy Yu, Vice President of Optical Transport Market Research at Dell’Oro Group. “There are a number of trends we expect to occur in the Optical market during the next five years, with the top three being: 1) the shift to packet-based equipment, where we expect optical packet equipment sales to grow three-fold in the next five years. 2) the growing use of OTN, MPLS, and MPLS-TP for both transport and switching, which is related to the rise in optical packet equipment, and 3) the increasing demand for 40 Gbps and 100 Gbps DWDM, which will steadily rise over the next few years to contribute about 60% of the DWDM sales by 2016,” stated Mr. Yu.

DWDM market grew 19% in 2011
According to a newly published report by Dell’Oro Group, worldwide DWDM equipment market revenues grew 19% to $7.3 billion in 2011.
“Demand for 40 and 100 Gbps transmission is driving DWDM sales to new highs,“ said Jimmy Yu, Vice President of Optical Transport research at Dell’Oro Group. “The total DWDM market, which includes both metro and long haul applications, will likely maintain strong growth in 2012. We believe the total DWDM market is on a path to surpass the revenue levels reached back in 2000, when the DWDM market peaked at $7.7 billion. We are forecasting the total DWDM market to reach $8.0 billion in 2012,“ added Mr. Yu.
The Optical Transport report indicates that the DWDM market grew across all the regions with North America accounting for the highest revenue during the year. The combined market for 40 Gbps and 100 Gbps DWDM wavelengths grew over 60% contributing nearly one-third of the 2011 market revenues.


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