Optical transport market reached $16bn last year, amidst Q4 decline

Share this on social media:

Dell’Oro Group has published its latest Optical Transport Quarterly Report.

The quarterly report is designed to offer in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, unit shipments (by speed including 100, 200, 400, and 800Gb/s).  

It 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.

Amongst its findings, the most recent iteration - which covers Q4 of 2020 - revealed that optical transport equipment revenue increased 1 per cent in 2020, reaching $16bn. All regions grew throughout the year, with the exception of North America and Latin America. However, there was a decline in the fourth quarter across some markets.

Jimmy Yu, vice president at Dell’Oro Group said: ‘Between concerns on starting new optical builds during the start of the pandemic and aggressive plans on 5G deployments that required a larger share of a service provider’s capital budget, the spending on optical transport dramatically slowed by the end of 2020. It was a really dramatic drop in optical equipment purchases in the fourth quarter. While we anticipated a slowdown near the end of the year due to concerns around Covid-19, we were surprised by a 29 per cent year-over-year decline in WDM purchases in North America as well as a 12 per cent decline in China. That said, there was good growth in the other parts of the world, especially Japan.’

This follows a strong third quarter, in which Dell’Oro cited growth of 9 per cent year-on-year, reaching $3.8bn. This was largely attributed to higher demand in Asia Pacific which, said the firm, more than offset the lower revenue in North America and Latin America for the quarter. 

Recent News

20 October 2021

Optoelectronic component manufacturer II‐VI is to power all of its European facilities with 100 per cent renewable electricity sources.

15 October 2021

Lumentum has awarded its first diversity, inclusion, and belonging (DIB) scholarships to 16 applicants from its 2021 internship program.

13 October 2021

Ciena and not-for-profit organisation, Academy Achievers are collaborating to help close the digital and educational gap among students interested in science, technology, engineering, and math (STEM) careers.

12 October 2021

Private investment house Ardian, has made its first investment in the Spanish telecoms market with the acquisition of operator Adamo from EQT Private Equity.