North American optical transport market dips in Q3 2023

Dec. 5, 2023
A new Dell’Oro Group report says market dynamics are different in North America than in other regions. 

The North American optical transport equipment market dropped 4 percent year-over-year (Y/Y) in the third quarter. Dell’Oro said that the North American and Latin American regions declined in the third quarter due to a mixture of issues: excess inventory, worsening macro-conditions, fear of recession, and higher borrowing costs.

Jimmy Yu, VP at Dell’Oro Group, said the North American market is still in what many industry observers call a digestion phase.

“The market dynamics are different in North America than other parts of the world because the supply chain and component crises resulted in a run for optical equipment,” they said. “Then when component supply improved, service providers started to receive more equipment than they needed, creating a pause in new orders and requests to move out deliveries into 2024.” 

However, demand for the market outside the North American region improved for a third consecutive quarter, growing 6 percent year-over-year.

“The market dynamics were different in other regions for varying reasons, such as Covid policies slowing economic growth in some countries and war in others. Hence, service providers in these countries did not build inventory in early 2023,” Yu said. 

Ciena, FiberHome, and Nokia each gained more than one percentage point of market share in the trailing fourth quarter period compared to a year ago.

The research firm said the worldwide optical transport market is projected to grow at an average annual rate of 3 percent, reaching $16 billion by 2024.

For related articles, visit the Optical Tech Topic Center.
For more information on optical components and suppliers, visit the Lightwave Buyer’s Guide.
To stay abreast of optical communications technology, subscribe to Lightwave’s Enabling Technologies Newsletter

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

Transforming the metro network and the evolution of the "Digital Service Provider"

March 4, 2025
Join experts at EXFO and Ekinops in this webinar that will review the evolving metro-centric requirements and the technologies emerging to meet them.

Unveiling the Synergy Between AI and Optical Networking

March 12, 2025
Join us for an engaging discussion with industry experts on the intersection of AI and optics. Moderated by Sean Buckley, editor-in-chief of Lightwave+BTR, this panel will explore...

ON TOPIC: Filling Coverage Gaps, Enhancing Public Safety

Jan. 30, 2025
With the ongoing drive to support AI and the need for high-speed data center interconnection, the call for higher-speed 800G optical technology is emerging. Initially focused ...

AI and Network Convergence: Transforming Global Connectivity

March 7, 2025
In today’s hyperconnected world, rolling out and managing profitable, high-performance networks for access and transport will require innovative architectural approaches. The ...