A new report from market research firm Dell'Oro Group says that demand for optical transport DWDM equipment is expected to exceed $17 billion by 2026. Over the next five years, sales of DWDM long-haul systems are expected to grow faster than WDM metro systems.
Jimmy Yu, vice president of Dell'Oro Group, said: "Despite the many turbulent factors in the market, we do not see the demand for DWDM equipment weakening. In fact, the biggest problem is that demand seems to be growing faster than supply is improving. Therefore, even if there is a mild recession, we think the worst case scenario is that demand will match supply capacity more quickly."
He added, "As a result, we expect continued revenue growth for DWDM systems. The only difference in the next five years compared to previous years is that we expect more growth in DWDM long-haul systems as IPoDWDM reduces the use of WDM metro systems in data center interconnects."
Other highlights of this five-year report on optical transport include.
-DWDM long-haul system revenues are expected to grow at a five-year compound annual growth rate of 5 percent.
-WDM metro system revenues are expected to grow at a five-year compound annual growth rate of 3 percent.
-capacity shipments are expected to grow at an average annual rate of more than 30 percent per year per year.
-Spectral efficiency is expected to increase at an average rate of 9% per year.
