Strength in Asia Pacific leads 3Q20 optical transport systems sales to climb: Dell'Oro
Sales of optical transport systems grew 9% year-on-year in the third quarter of 2020, according to Dell'Oro Group. The market research firm states in its most recent Optical Transport Quarterly Report that strength in sales from Asia Pacific offset weakness in the Americas to result in total revenues for the sector of $3.8 billion.
As other analysts have reported (see “European transport spending up, North American down in 3Q20: Cignal AI”), sales momentum in North America lost steam in 3Q20, according to Dell’Oro. The same could be said for Latin America as well.
"Sales slowed in North America following a strong first half of the year," explained Jimmy Yu, vice president at Dell'Oro Group. "Whether it was due to network demand caused by people working and studying from home or new projects at the beginning of the year, the demand for optical equipment in the region rose 11% in the first half of 2020. But I think there was enough concern surrounding the longevity of the pandemic that service providers grew cautious and refrained from overextending their capital. As a result, optical revenue in North America declined 7% in the third quarter."
Fortunately for vendors with exposure to the region, Asia Pacific spending grew 22% versus the year-ago quarter in 3Q20, thanks largely to China and Japan. Meanwhile, regions such as Middle East and Africa (MEA) rebounded in the quarter thanks to the easing of restrictions after a sharp decline in the first half of 2020. Sales in China, Japan, and MEA each saw optical transport spending increase by more than 25% during the third quarter, Dell’Oro reports.
Dell'Oro’s Optical Transport Quarterly Report provides market coverage with tables showing manufacturers' revenue, average selling prices, 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 HardyStephen 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.
