Tuesday, January 17, 2017

Dell'Oro: WDM Market Projected to Reach $15B by 2021

WDM revenue is projected to drive Optical Transport Equipment market over the next five years as the overall market is projected to reach $15 B by 2021, according to a newly released report by Dell'Oro Group.

Highlights from the Optical Transport 5-Year Forecast Report:

  • All of the Optical Transport market growth will be from WDM equipment demand, of which metro applications is forecast to drive the highest amount of growth for the next five years.
  • Demand for WDM wavelength speeds greater than 100 Gbps reached an inflection point in 2016, and we project it to grow at an average annual rate above 80 percent.
  • Enterprise direct purchasing for data center interconnect will deeply influence the WDM market. We expect these direct purchases to comprise nearly 20 percent of WDM revenue by 2021.

"We are anticipating multiple years of Optical Transport Equipment market growth in the next five years," said Jimmy Yu, Vice President at Dell'Oro Group. "We do not see any significant change in the future demand for network capacity. We believe that, on average, WDM shipments and revenue will be much higher across the next five years. However, we do believe the Optical Transport market is inherently cyclical, and, following seven strong years of growth, foresee some market bumps to occur along the way," added Yu.


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