Metro optical transport equipment revenues are forecast to reach USD 9 Billion by 2018 driven by the shift from SONET/SDH optical transport systems to the newer WDM systems, reports Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries. According to the newly released optical transport forecast, the WDM equipment sales will make up the majority of revenue in this segment by 2018.
“The metro market is in a state of transition as it moves away from SONET/SDH multiplexers and towards high capacity transport equipment. We believe the result of the network transition will be the continuous decline of SONET/SDH equipment sales at an average annual rate of over 30 percent a year. In place of those equipment, service providers will shift their focus to higher capacity packet friendly systems such as optical packet-switches and WDM metro. We predict the market demand for optical packet-switch to grow at a 3 percent compounded annual growth rate until 2018 and for WDM metro to grow at an average annual rate of 9 percent.”
- Jimmy Yu, Vice President of Optical Transport Market Research at Dell’Oro Group