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40/100 Gbps DWDM Optical Equipment Revenue Forecast to Exceed $3 Billion by 2014

40 Gbps Shipments Expected to Grow at 55 Percent CAGR

Redwood City, Calif. – July 26, 2010 – In a newly released Optical forecast report by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, total worldwide DWDM Optical Transport equipment revenue is forecast to be $9.3 billion in 2014, of which just over $3 billion will come from 40/100 Gbps.

“The demand for 40 Gbps DWDM was resilient in 2009 even as the market for optical equipment was under extreme pressure,” said Jimmy Yu, Sr. Director of Optical Transport research at Dell’Oro Group. “40 Gbps DWDM revenues more than doubled in 2009 even though the overall DWDM market declined. Despite the availability of 100 Gbps DWDM, we think demand for 40 Gbps DWDM will continue to expand, and are forecasting a 55 percent CAGR over the next five years, in large part because of the price premium of 100 Gbps. This doesn’t mean that there’s no demand for 100 Gbps. We think 100 Gbps DWDM shipments will also grow, but that the higher volumes probably won’t occur until late 2012 when we think the price of 100 Gbps wavelengths will be lower than that of 40 Gbps wavelengths,” added Mr. Yu.

About the Report

The Dell’Oro Group 5-Year Forecast Report offers a complete overview of the Optical Transport industry with tables covering manufacturers’ revenue, average selling prices, unit shipments Tributary/Line or Wavelength shipments (by speed up to 100 Gbps). The report tracks DWDM long haul terrestrial, WDM metro, multiservice SONET/SDH, and optical switch equipment. To purchase this report, please contact Emily Kendall, call +1.650.622.9400 x223 or email Emily@DellOro.com.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit http://www.delloro.com.

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