Coherent DSPs to raise the DWDM market to $18B by 2028

Jan. 18, 2024
A new Dell’Oro Group report said these platforms will become key growth engines.

Coherent optical DSPs will influence the growth of the optical DWDM market. According to Dell’Oro Group, coherent DSPs, which can deliver wavelength speeds of 1 Tbps, will drive the market to reach $18 billion in revenue by 2028. 

Dell’Oro expects the shipment of coherent wavelengths capable of terabit-per-second speeds to grow at a 200 percent CAGR over the next five years.

Additionally, baud rates over 100 GHz will surpass 40 percent of new installations by 2028. High baud rates will reduce the number of wavelengths per fiber, but the larger channels will deliver better performance and longer reach while reducing cost.

Another critical factor will be long-haul networks. The research firm said that long-haul DWDM equipment will outpace the growth of metro equipment and contribute a higher share of market revenue.

 

Jimmy Yu, Vice President at Dell’Oro Group, said that the higher speed DSPs will be critical sources of growth during the next five years. “We are projecting the new generation of coherent DSPs capable of terabit speeds will grow at an accelerated pace over the next five years,” said Yu. “By 2028, we expect over half of the DWDM market revenue will be derived from shipments of 1.2 Tbps and 1.6 Tbps-capable line cards.” 

Yu added, “These new line cards will bring 400 Gbps wavelength into ultra-long-haul applications that cross thousands of kilometers and 800 Gbps wavelengths everywhere else.”

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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.

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