The global optical transport equipment market declined 18 percent in 3Q 2024, driven by reduced global demand and challenging macroeconomic conditions, according to Dell’Oro Group.
There was a decrease in optical transport equipment market across all major geographic regions.
India experienced the largest decline, with a 40 percent revenue drop. Leading telecom operator in India are Bharti Airtel, BSNL, Reliance Jio, Vodafone Idea and BSNL/
China posted a significant decline of 30 percent. Leading telecom operators are China Mobile, China Telecom, and China Unicom.
Other regions also saw revenue drops exceeding 20 percent.
Declines in optical transport equipment market is attributed to ongoing customer inventory corrections (beginning in 4Q 2023).
There were unfavorable macroeconomic conditions, especially in markets like Europe and China, which had no elevated inventory levels.
North America showed signs of recovery, with order flows improving as inventory corrections near completion.
The top three optical transport equipment vendors in the first nine months of 2024 are Huawei, Ciena and ZTE.
Huawei has achieved the largest market share gain (up 4 percentage points).
ZTE reported the second-highest market share gain among vendors.
The optical transport equipment market is expected to recover in 2025, driven by completion of the customer inventory correction phase by late 2024 and anticipated improvement in global economic conditions starting in early 2025.
