Industry market information firm, Dell’Oro Group has launched its Industry Optical Transport 5-Year Forecast Report.
Amongst the report’s findings was the prediction that demand for optical transport DWDM equipment will surpass $17bn by 2026. Over the next five years, it is expected that DWDM Long Haul system sales will grow at a faster pace than WDM Metro system sales.
Additional highlights from the report include a forecast that DWDM Long Haul revenue would grow at a five-year compound annual growth rate (CAGR) of 5 per cent. Meanwhile, WDM metro revenue is forecast to grow at a five-year CAGR of 3 per cent. Capacity shipments each year are projected to grow at an average annual rate of more than 30 per cent, while spectral efficiency is expected to improve at an average annual rate of 9 per cent.
Jimmy Yu, vice president at Dell’Oro Group said: ‘Although there is a ton of market turbulence, we do not see demand for DWDM equipment letting up. In fact, the biggest issue is that demand seems to be growing faster than supply. Hence, even if a mild recession were to occur, we think the worst case scenario is that demand will align with supply sooner. Hence, we are projecting continuous growth for DWDM system revenues. The only difference over the next five years, compared to previous years, is that we are expecting more growth from DWDM Long Haul since IPoDWDM should lower the use of WDM Metro systems in data centre interconnect.’