2023-07-27
On July 25, 2023, market research firm Dell'Oro Group released its latest report, projecting that the global optical transmission equipment market will reach $83 billion over the next five years. This represents a 10% increase in cumulative revenue compared to the previous five years, with a significant portion of the revenue coming from the sales of coherent DWDM systems.
Jimmy Yu, Vice President of Dell'Oro Group, stated, "We have slightly raised our outlook for optical transmission equipment. During the report's compilation, we discovered a stronger demand for long-distance equipment than initially anticipated, leading us to believe that there is more potential for increased market revenue rather than being confined to low-revenue projects. Despite year-to-year fluctuations in optical equipment spending, we believe the direction of bandwidth consumption remains stable—continuously upward and to the right."
The July 2023 five-year report on optical transmission also highlighted the following key points:
●The optical transmission market is expected to approach $180 billion by 2027.
●The demand for DWDM long-distance system equipment is projected to increase due to the continuous growth in network capacity demand and widespread adoption of C+L band fiber line systems.
●The demand for WDM equipment in metropolitan and long-distance data center interconnections (DCI) is expected to grow during the forecast period, with a significant portion of the growth coming from long-distance systems.
●The new generation of coherent DSP (Digital Signal Processor) shipments is set to begin by the end of 2023, and by 2027, nearly one-third of shipments will consist of DSPs capable of transmitting 1.2Tbps and 1.6Tbps signals on a single wavelength.
These report findings provide important insights into the future development of the optical transmission equipment market, making them valuable references for industry participants and investors.
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