North American optical transport equipment spending grew 10% in 2Q 2022: Dell’Oro

Aug. 25, 2022
On the other end of the spending scale from North America, Asia Pacific showed the lowest growth among the other regions of the world due to lower demand in China.

Optical transport equipment spending in North America remained strong in the second quarter of 2022, according to a new report from Dell’Oro Group. The market research firm states in its 2Q 2022 Optical Transport Quarterly Report that sales in the region increased 10% year-over-year, helping the global market (excluding China) to increase by 2% during the quarter.

“At this pace, we could be headed for another year of double-digit growth in North America,” commented Jimmy Yu, vice president at Dell’Oro Group and the report’s author. “While we expected another year of North American optical market expansion in 2022, we thought the growth rate could slow a bit after such a strong 2021. However, considering the first-half results and higher than usual backlog held by equipment manufacturers, we think a double-digit rate of growth could occur in 2022. Our biggest concern, however, remains to be the component shortage and supply chain issues that have limited revenue growth for the past couple years.”

Ciena, Infinera, Cisco, and Fujitsu benefited most from North American operators’ largesse in 2Q22 and dominated the market with a combined  market share of approximately 85%.

On the other end of the spending scale from North America, Asia Pacific showed the lowest growth among the other regions of the world due to lower demand in China. Excluding China, Dell’Oro now predicts that the global optical network equipment market will increase by a little more than 4% year over year in 2022.

Dell’Oro’s Optical Transport Quarterly Report includes tables covering manufacturers’ revenue, average selling prices, and 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 switches, optical packet platforms, data center interconnect (metro and long haul), and disaggregated WDM.

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About the Author

Stephen 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.

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