Operators to spend $75 billion on optical systems over next five years: Dell’Oro

July 27, 2018
Network operators will spend $75 billion optical transport systems over the next five years, predicts the Dell’Oro Group. The market research firm adds in its most recent “Optical Transport 5-Year Forecast Report” that the spending spree will see the market hit $16 billion by 2022.

Network operators will spend $75 billion optical transport systems over the next five years, predicts the Dell’Oro Group. The market research firm adds in its most recent “Optical Transport 5-Year Forecast Report” that the spending spree will see the market hit $16 billion by 2022.

As much as 95% of the money spent on optical network equipment during the time frame will go toward WDM systems, Dell’Oro researchers predict. “We expect demand for optical equipment to continue rising,” said Jimmy Yu, vice president at Dell’Oro Group. “Although the shift away from legacy optical transport equipment will continue to weigh down the market’s top line revenue, we foresee a rising use of WDM systems as service providers continue to expand their fiber footprint and Internet content providers continue to install more optical transport capacity between their global data centers.”

Most WDM deployments during the forecast period will occur in metro access and aggregation, according to Dell’Oro. Roll outs of 5G mobile and next-generation fixed broadband technologies such as 10G PON, Gfast, and DOCSIS 3.1 will drive this trend. Data center interconnect requirements also will prove a catalyst for spending, accounting for 18% of WDM systems revenue by 2022.

Last year's “Optical Transport 5-Year Forecast Report” predicted 2021 revenue of $15 billion for optical transport systems (see "Demand for 100G and greater coherent wavelengths to drive optical transport market to $15B: Dell'Oro").

For related articles, visit the Business Topic Center.

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

Sponsored Recommendations

Scaling Moore’s Law and The Role of Integrated Photonics

April 8, 2024
Intel presents its perspective on how photonic integration can enable similar performance scaling as Moore’s Law for package I/O with higher data throughput and lower energy consumption...

Coherent Routing and Optical Transport – Getting Under the Covers

April 11, 2024
Join us as we delve into the symbiotic relationship between IPoDWDM and cutting-edge optical transport innovations, revolutionizing the landscape of data transmission.

Constructing Fiber Networks: The Value of Solutions

March 20, 2024
In designing and provisioning a fiber network, it’s important to think of it as more than a collection of parts. In this webinar, AFL’s Josh Simer will show how a solution mindset...

From 100G to 1.6T: Navigating Timing in the New Era of High-Speed Optical Networks

Feb. 19, 2024
Discover the dynamic landscape of hyperscale data centers as they embrace accelerated AI/ML growth, propelling a transition from 100G to 400G and even 800G optical connectivity...