The optical transport equipment market, according to a forecast by Dell’Oro Group, is expected to recover from a sharp decline in 2024 caused by oversupply and economic challenges.
The global optical transport equipment market is projected to grow at an average annual rate of 4 percent over the next five years, reaching $16 billion by 2029.
The 2024 decline is viewed as a market correction, allowing service providers to better assess future equipment needs, fostering a more balanced environment for operators and manufacturers.
Cumulative WDM capacity is forecast to grow at an average annual rate of 30 percent through 2029, considering the pre-pandemic capacity surge and subsequent inventory corrections.
While data center interconnect (DCI) is anticipated to shift towards IPoDWDM in metro applications, DWDM Long Haul for DCI is expected to grow at a five-year CAGR of 12 percent, driven by large Internet content providers. The market will transition to higher wavelength speeds, with 1.6 Tbps-capable wavelengths being the highest available in 2025 and 2.4 Tbps-capable coherent technology expected as early as 2027.
