Optical Transport Market to Reach Close to $4 Billion in 2016, says Dell'Oro Group

Optical Transport Market to Reach Close to $4 Billion in 2016, says Dell'Oro Group Image Credit: Dell'Oro

According to a recently published report from Dell’Oro Group, the Optical Transport Equipment market almost hit $4 billion in 2Q16, growing six percent year-over year. Huawei, the market leader by revenue share, surpassed the $1 B quarterly revenue run rate for the first time. The only other vendor to better this revenue level was Nortel during the telecom boom cycle of 2000.

“The second quarter of 2016 was another great quarter for the Optical Transport market,” said Jimmy Yu, Vice President at Dell’Oro Group. “However, it wasn’t an outstanding quarter. It was actually quite turbulent with a number of highs and lows,” added Yu.

Revenue from deployments in China grew 20 percent year-over-year. Shipments of 100/200 Gbps DWDM wavelengths doubled year-over-year.DWDM Long Haul revenue grew at 18 percent year-over-year, much higher than expected.

Excluding sales to China, the Optical Transport market revenue stagnated with a zero percent year-over-year growth rate. Average market prices for 100/200 Gbps DWDM wavelengths declined at a higher than typical rate due to the rising sales in China and competition among equipment manufacturers. WDM Metro revenue grew at only three percent year-over-year, less than expected.

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma


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