The ongoing investment in 5G mobile and fixed broadband market will fuel the optical transport equipment market that is forecast to reach $16 billion by 2022.
WDM systems will contribute 95 percent of the optical transport revenue, according to Dell’Oro Group.
Ciena, Cisco, Infinera, ADVA Optical Networking, Nokia, Coriant, ECI, Fujitsu, Huawei and ZTE are some of the vendors in the global optical network market.
The cumulative spend on optical equipment during the next five years will be $75 billion, said the report.
Due to telecom service providers’ Capex plans for mobile 5G and fixed — Gfast, 10G PON, and DOCSIS 3.1 — broadband speeds, requiring fiber to reach closer to end users, demand for WDM systems will increase the most in metro access and aggregation.
Data center interconnect (DCI) is forecast to account for 18 percent of WDM systems revenue by 2022.
“We foresee a rising use of WDM systems as service providers continue to expand their fiber footprint and Internet content providers continue to install more optical transport capacity between their global data centers,” Jimmy Yu, vice president at Dell’Oro Group, said.