Optical Transport: $19 Billion by 2016

According to Dell'Oro Group, total worldwide optical transport equipment revenues are forecast to grow to nearly $19 billion by 2016. The DWDM transport market is expected to grow at a 10% compounded annual growth rate (CAGR) over the next 5 years, reaching $12 billion, largely because of need for more backhaul capacity in both fixed and mobile broadband networks. Other predictions include:

• A shift to packet-based equipment, which is expected to grow three-fold in the next five years



• Growing use of OTN, MPLS, and MPLS-TP for both transport and switching



• Increasing demand for 40 Gbps and 100 Gbps DWDM, which is expected to steadily rise over the next few years to contribute about 60% of the DWDM sales by 2016