Worldwide optical DWDM equipment revenue will grow at a 12 percent compounded annual growth rate (CAGR) over the next 5 years, according to market research firm Dell’Oro Group. Its newly released optical transport market forecast report predicts the DWDM equipment market will be worth $11 billion in 2015, with 40-Gbps and 100-Gbps a catalyst for the growth.
Dell’Oro forecasts an average annual growth rate of 50 percent for 40/100-Gbps DWDM shipments.
“We’re projecting a very strong market for both 40 and 100 gigabit DWDM,” confirmed Jimmy Yu, senior director of optical transport research at Dell’Oro Group. “In fact, we have raised our forecast of both 40 and 100 gigabit because the demand for high-speed interconnects continues to exceed our expectations.
“The adoption of 100 gigabit is occurring faster than that of 40 gigabit, driving revenues to nearly $1 billion by 2013 and $2 billion by 2015. We believe 40 gigabit will also maintain its momentum through the forecast period, since it’s likely to sustain a competitive price advantage in ultra long haul spans,” Yu added.
Dell’Oro early this year had forecasted the entire optical transport market would be worth greater than $17 billion in 2015 (see “Dell'Oro: Optical transport revenue to exceed $17B 2015”). Yu said at the time that 40-gigabit wavelength shipments would grow at a CAGR of over 40 percent and 100-gigabit wavelengths would grow at a CAGR over 200 percent.
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