Wednesday, July 19, 2017

Dell'Oro forecasts WDM revenue of $14bn by '21

In the new Optical Transport 5-year Forecast Report from Dell'Oro Group, the WDM market revenue is forecast to grow to $14 billion by 2021, driven by the demand for 100+ Gbit/s coherent wavelengths, while the total optical transport equipment market, including WDM, multi-service multiplexers and optical switches, is projected to reach $15 billion.

Highlights from Dell'Oro's latest optical transport report include:

1. Demand for WDM metro equipment is expected to outpace that for DWDM long haul over the next five years, with the average annualised revenue growth rate over the period for WDM metro equipment projected to be approximately three-times that for DWDM long haul.
2. 100+ Gbit/s coherent wavelengths will constitute approximately 90% of the overall WDM equipment market in terms of revenue by 2021.

3. Enterprise direct purchasing for data centre interconnect (DCI) will significantly influence the WDM market, with WDM-based DCI equipment revenue forecast to be reach $2.4 billion by 2021.

Commenting on the report, Jimmy Yu, VP at Dell'Oro Group, said, "Demand for coherent wavelengths running at speeds of 100 Gbit/s and higher is expected to grow at a solid pace for the next five years… specifically, I predict a large ramp in demand for 200 Gbit/s coherent wavelengths and forecast shipments of these line cards to grow at an 85% compounded annual growth rate".

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