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Growth in Asia Pacific More Than Offset Lower Demand in Americas

REDWOOD CITY, Calif. – November 20, 2020 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications and networks industries, optical transport equipment revenue increased 9 percent year-over-year in 3Q 2020 reaching $3.8 billion. The market growth was largely attributed to higher demand in Asia Pacific.

“Sales slowed in North America following a strong first half of the year,” said Jimmy Yu, Vice President at Dell’Oro Group. “Whether it was due to network demand caused by people working and studying from home or new projects at the beginning of the year, the demand for optical equipment in the region rose 11 percent in the first half of 2020. But I think there was enough concern surrounding the longevity of the pandemic that service providers grew cautious and refrained from overextending their capital. As a result, optical revenue in North America declined 7 percent in the third quarter,” continued Yu.

Growth in Asia Pacific more than offset the lower revenue in North America and Latin America. Optical revenue grew 22 percent year-over-year in Asia Pacific, driven largely by higher deployments in China and Japan. Also, with lockdown restrictions easing, some regions such as Middle East and Africa (MEA), significantly rebounded in the quarter following a sharp decline in 1H 2020. Sales in China, Japan, and MEA each grew over 25 percent.

About the Report

The Dell’Oro Group Optical Transport Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, unit shipments (by speed including 100 Gbps, 200 Gbps, 400 Gbps, and 800 Gbps).  The report tracks DWDM long haul, WDM metro, multiservice multiplexers (SONET/SDH), optical switch, optical packet platforms, data center interconnect (metro and long haul), and disaggregated WDM.  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, networks, and data center IT 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 https://www.delloro.com.

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