China slump drags down optical transport market: Dell’Oro

Dec. 2, 2021

The optical transport market has declined 2% year-over-year through the first three quarters of 2021, according to Dell’Oro Group.

Stephen Hardy

The optical transport market has declined 2% year-over-year through the first three quarters of 2021, according to Dell’Oro Group. The blame falls squarely on China; demand has slumped in the world’s largest market, outpacing growth throughout the rest of the world, the market research firm states in its latest Optical Transport Quarterly Report.

“Optical equipment revenue in China took a sharp turn for the worse in 3Q 2021,” said Jimmy Yu, vice president at Dell’Oro. “As a result, optical revenue in China declined at a double-digit rate in the quarter, resulting in a 9% decline for the first nine months of 2021. At this rate, we are expecting a full-year optical market contraction in the country – something that has not occurred since 2012. Helping to offset some of this lower equipment revenue from China was the robust demand in North America, Europe, and Latin America.”

In fact, demand outside of China has outpaced supply, according to the report. “We estimate that optical transport equipment revenue outside of China grew 6% year-over-year in the third quarter. However, we believe this growth rate could have been higher, closer to 10%, if it was not for component shortages and other supply issues plaguing the industry. So, fortunately, while optical demand is hitting a rough patch in China, it seems to be accelerating in other parts of the world,” Yu stated.

Dell’Oro’s Optical Transport Quarterly Report covers that market with tables illustrating manufacturers’ revenue, average selling prices, and unit shipments (by speed including 100 Gbps, 200 Gbps, 400 Gbps, and 800 Gbps). The report tracks DWDM long haul, WDM metro, multiservice multiplexers (SONET/SDH), optical switch, optical packet platforms, data center interconnect (metro and long haul), and disaggregated WDM.

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About the Author

Stephen Hardy | Editorial Director and Associate Publisher, Lightwave

Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.

Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.

He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.

You can connect with Stephen on LinkedIn as well as Twitter.