Optical transport revenues exceed second-quarter growth expectations

Aug. 23, 2023
A new Dell’Oro report reveals that supply improvements drove growth during the quarter.

Driven by supply improvements, a new Dell'Oro report found that optical transport equipment revenue grew five percent year-over-year in the second quarter. The research firm said this was the third consecutive quarter that the optical market growth rate topped estimates.

The optical transport market revenue grew five percent year-over-year in the second quarter to over $4 billion. Dell’Oro said better-than-expected revenue was due to higher DWDM Long Haul and Multiservice Multiplexer revenue.

Huawei, Ciena, Nokia, ZTE, Infinera, and FiberHome were the most significant global WDM suppliers in the trailing four-quarter period. Within this group, Nokia and FiberHome gained the most market share compared to the previous year period. FiberHome’s optical revenue grew at the highest rate among the vendors at over 30 percent year-over-year.

“It was another great quarter for optical system vendors,” said Jimmy Yu, VP at Dell’Oro Group. “Ever since component supply eased up, system manufacturers have been able to deliver more products to their customers that sat in the backlog. As a result, optical revenues have increased faster than expected.”

He cautioned that the ongoing inventory digestion will be an issue through the rest of 2023.

“With that said, some customers are signaling a need for a little pause after receiving these deliveries,” Yu said. “Therefore, even though the results in the first half of 2023 were higher than expected, we are holding the full year 2023 outlook at 4 percent, believing year-over-year growth will slow in the back half of the year.”

For related articles, visit the Business Topic Center.

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

To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.

About the Author

Sean Buckley

Sean is responsible for establishing and executing the editorial strategies of Lightwave and Broadband Technology Report across their websites, email newsletters, events, and other information products.

Sponsored Recommendations

New Optical Wavelength Service Trends

July 1, 2024
Discover how optical wavelength services are reshaping the telecom landscape, driven by rapid expansion and adoption of high-speed connections exceeding 100 Gbps, championed by...

Data Center Interconnection

June 18, 2024
Join us for an interactive discussion on the growing data center interconnection market. Learn about the role of coherent pluggable optics, new connectivity technologies, and ...

ON TOPIC: Innovation in Optical Components

July 2, 2024
Lightwave’s latest on-topic eBook, sponsored by Anritsu, will address innovation in optical components. The eBook looks at various topics, including PCIe (Peripheral...

AI’s magic networking moment

March 6, 2024
Dive into the forefront of technological evolution with our exclusive webinar, where industry giants discuss the transformative impact of AI on the optical and networking sector...