Dell’Oro Group yesterday revealed findings from their 2Q 2023 Optical Transport Quarterly Report. According to the report, Optical Transport equipment revenue grew 5 percent year-over-year in 2Q 2023. This was the third consecutive quarter that the optical market growth rate topped estimates.
Additional highlights from the report:
- Optical Transport market revenue grew 5 percent year-over-year in 2Q 2023 to a little over $4.0 billion. The better-than-expected revenue was due to higher DWDM Long Haul and Multiservice Multiplexer revenue.
- The largest global WDM suppliers in the trailing four quarter period were Huawei, Ciena, Nokia, ZTE, Infinera, and FiberHome. Among these vendors, Nokia and FiberHome gained the most market share compared to the previous year period. FiberHome’s optical revenue grew at the highest rate among the vendors at over 30 percent year-over-year.
Jimmy Yu, Vice President at Dell’Oro Group
It was another great quarter for optical system vendors. Ever since component supply eased up, system manufacturers have been able to deliver more products to their customers that sat in backlog. As a result, optical revenues have increased at a faster rate than expected. With that said, some customers are signaling a need for a little pause after receiving these deliveries. Therefore, even though the results in the first half of 2023 were higher than expected, we are holding the full year 2023 outlook at 4 percent, believing year-over-year growth will slow in the back half of the year.
