The optical transport equipment market experienced significant fluctuations in 2024, ending the year with a strong 45 percent quarter-over-quarter growth in Q4, despite an overall annual decline of 13 percent, Dell’Oro Group said.
This downturn in the optical transport equipment market was driven by customer adjustments to excess inventory and challenging macroeconomic conditions. However, industry analysts suggest that the market is on the path to recovery, with Q4 growth signaling a return to equilibrium between supply and demand.
The sharp revenue increase in Q4 2024 was observed across multiple regions, including North America, which recorded its third consecutive quarter of growth. While China exhibited its usual seasonal strength, the market outside of China also expanded by approximately 35 percent sequentially, indicating broad-based recovery. The inventory correction that began in late 2023 appears to be over, and vendor reports suggest that order flow is improving, particularly in North America, where the excess inventory buildup was most pronounced.
The leading vendors in the Optical Transport equipment market in 2024 were Huawei, Ciena, Nokia, ZTE, and Infinera. Huawei maintained the highest market share at 33 percent, followed by Ciena at 19 percent.
Although Nokia’s acquisition of Infinera has not yet been finalized, a combined Nokia-Infinera entity would hold a market share of 19 percent. Three vendors — Huawei, ZTE, and Cisco — gained market share during the year, with Huawei increasing by three percentage points, while ZTE and Cisco each gained one percentage point.
Leading vendors in the optical transport equipment market have strengthened their positions across multiple regions, reflecting their competitive advantage in an industry that is steadily recovering from recent downturns, Jimmy Yu, Vice President at Dell’Oro Group, said.
Baburajan Kizhakedath
