WDM Market to Grow 40% Through 2020

According to the Dell'Oro Group, $63 billion of wavelength division multiplexer (WDM) fiber equipment is expected to ship globally from 2016 ...

Disaggregated WDM moving into cable
Disaggregated WDM moving into cable

According to the Dell'Oro Group, $63 billion of wavelength division multiplexer (WDM) fiber equipment is expected to ship globally from 2016 through 2020. As a comparison, this revenue amount will be more than 40% greater than the WDM market revenues obtained across the past five year period, 2011 through 2015.

"Bandwidth demand doesn't seem to show signs of slowing," said Jimmy Yu, vice president at Dell'Oro Group. "To meet consumer needs for more bandwidth, service providers have installed a large amount of WDM equipment and will continue to do so for a number of years to come."

Other findings indicate:

  • WDM shipments are transitioning from 100 Gbps to 200/400 Gbps. Shipments of >100 Gbps wavelength speeds is projected to grow at a five-year compounded annual growth rate surpassing 100%.
  • Metro applications are expected to drive most of the WDM market's growth through 2020. The drivers for WDM metro deployments include upgrading to higher wavelength speeds such as 200 Gbps, replacing legacy systems to accommodate higher speed fixed broadband, and interconnecting enterprise data centers.
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