Optical transport equipment market predicted to return to growth

Dell’Oro Group’s newly published Optical Transport 5-Year July 2024 Forecast Report predicts that the optical transport equipment market will grow, on average, at 2% CAGR for the next five years. This growth will follow a downturn in the market, which the group explained was caused by customers pausing purchases to digest excess inventory.

Jimmy Yu, vice president at Dell’Oro Group, reported that all four customer groups tracked for the report (communication service providers, cable companies, internet content providers, and others) are projected to see growth after 2024, reaching revenue highs by 2028.

“2024 is turning out to be a tough year for the optical transport equipment market because of inventory digestion,” said Yu in a press release. “But looking past this year, when the market gets through this inventory cycle, inflation moderates, and economies strengthen, we see good amounts of growth for the optical transport equipment market.”

The report also forecasts that long-haul deployments will drive demand in the data center interconnect market, while metro demand will shrink due to increased use of routers and ethernet switches for coherent transport.

For related articles, visit the Optical Tech Topic Center.

For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.

To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.