DWDM Long Haul Expected to Outshine WDM Metro
REDWOOD CITY, Calif. – July 19, 2022 – According to a recent forecast report by Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center industries, demand for Optical Transport DWDM equipment is forecast to surpass $17 billion 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.
“Although there is a ton of market turbulence, we do not see demand for DWDM equipment letting up,” said Jimmy Yu, Vice President at Dell’Oro Group. “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 center interconnect,” added Yu.
Additional highlights from the Optical Transport 5-Year July 2022 Forecast Report:
- DWDM Long Haul revenue is forecasted to grow at a five-year compounded annual growth rate (CAGR) of 5 percent.
- WDM Metro revenue is forecasted to grow at a five-year CAGR of 3 percent.
- Capacity shipments each year are projected to grow at an average annual rate of 30+ percent.
- Spectral efficiency is expected to improve at an average annual rate of 9 percent.
About the Report
The Dell’Oro Group Optical Transport 5-Year Forecast Report offers a complete overview of the Optical Transport industry with tables covering manufacturers’ revenue, average selling prices, unit shipments, wavelength shipments (by speed up to 1.2+ Tbps). The report tracks DWDM long haul, WDM metro, multiservice multiplexers, optical switch, Disaggregated WDM, DCI, and ZR Optics. To purchase this report, please contact us at dgsales@delloro.com.
About Dell’Oro Group
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, enterprise networks, data center infrastructure, and network security markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.
# # #
