8% Growth Forecast for WDM Market

According to the Dell'Oro Group, the total optical WDM market, consisting of both long-haul and metro equipment, is forecast to grow 8% in ...

Disaggregated WDM moving into cable
Disaggregated WDM moving into cable

According to the Dell'Oro Group, the total optical WDM market, consisting of both long-haul and metro equipment, is forecast to grow 8% in 2017 to reach $12 billion. Ciena, Huawei, Infinera, Nokia and ZTE are expected to benefit from the growth.

"We do not see a slowdown in WDM demand this year," said Jimmy Yu, vice president at Dell'Oro. "Rather, we believe this will be another great year for WDM equipment, and will mark the eighth consecutive year of market expansion. The drivers for this year's growth will likely be the same as last year - China, data center interconnect, and adoption of coherent wavelengths. The only exception to last year may be that the vast majority of growth will come from WDM metro equipment instead of DWDM long haul equipment."

Other findings indicate:

  • The total WDM market grew 4% year-over-year in 1Q17.
  • Five vendors captured close to 75% share of the total WDM market in the quarter. In rank order by market share, they were Huawei, Ciena, ZTE, Nokia and Infinera.
  • Coherent line card shipments comprising of 100 Gbps and higher speed wavelengths, such as 200 Gbps, grew nearly 25% year-over-year in the quarter.
  • Data center interconnect grew more than 20% year-over-year with the highest revenue contribution from direct sales to Internet content providers.

The report tracks DWDM long haul terrestrial, WDM metro, multiservice multiplexers (SONET/SDH), optical switch, optical packet platforms, and data center interconnect (metro and long haul).

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