According to the Dell'Oro Group, wavelength division multiplexing (WDM) equipment demand is expected to drive the optical transport market to $15 billion by 2019.
"The network still needs a lot of raw bandwidth, and WDM is the best equipment to deliver that," wrote Jimmy Yu, vice president of optical transport market research at Dell'Oro. "While high demand for long-haul equipment will continue, the biggest growth that we are projecting is in metro applications. The majority of metro equipment purchases will still be made by telecom service providers, expanding their metro network capacity for higher speed services, but we also see a strong trend towards enterprises such as Internet content providers and financial institutions procuring and installing their own high-speed 100 Gbps links. This trend is being powered by the increasing importance of data centers to a company's core business."
Other findings indicate:
WDM metro revenue is forecast to grow at a 10% compounded annual growth rate (CAGR).
More than 75% of WDM network capacity installed across the next five years will be from 100 Gbps wavelengths.
Demand for 200 Gbps wavelengths is expected to ramp in metro applications this year and is forecast to contribute nearly 25% of WDM Metro equipment revenue by 2019.
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