News

26 July 2010

 

40/100Gbps DWDM optical equipment revenue to exceed $3bn by 2014

Worldwide DWDM optical transport equipment revenue will rise to $9.3bn in 2014, of which just over $3bn will come from 40/100Gbps, predicts market research firm Dell’Oro Group in its latest 5-Year Forecast Report.

“The demand for 40Gbps DWDM was resilient in 2009, even as the market for optical equipment was under extreme pressure,” says Jimmy Yu, senior director of Optical Transport research at Dell’Oro Group. “40Gbps DWDM revenues more than doubled in 2009, even though the overall DWDM market declined,” he points out. “Despite the availability of 100Gbps DWDM, we think demand for 40Gbps DWDM will continue to expand, and are forecasting a 55% CAGR [compound annual growth rate] over the next five years, in large part because of the price premium of 100Gbps,” he adds.

“This doesn’t mean that there's no demand for 100Gbps,” Yu remarks. “We think 100Gbps DWDM shipments will also grow, but that the higher volumes probably won’t occur until late 2012, when we think the price of 100Gbps wavelengths will be lower than that of 40Gbps wavelengths,” he concludes.

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Optical transport market to contract by 10% in 2009

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