Demand for Optical Transport equipment is expected to increase to $18 billion by 2026, according to a recent forecast report by Dell’Oro Group.
All of the market growth will be from sales of DWDM system that deliver wavelength speeds in excess of 200 Gbps. IPoDWDM is expected to lower the overall demand for DWDM systems.
“Drivers of our growth prediction include the growing global economy, government initiatives to fund the reach of broadband to rural areas, and overall network upgrades to align with customer demand for more bandwidth,” Jimmy Yu, Vice President at Dell’Oro Group, said.
New technologies such as 400ZR and 1.2 Tbps-capable wavelengths are expected to change the market dynamics.
Optical Transport market is forecast to grow at a 3 percent compounded annual growth rate (CAGR), driven by higher demand in all major regions.
Coherent wavelength shipments on DWDM systems are forecast to grow at a 12 percent CAGR.
The ZR optics market comprised of 400ZR and 800ZR is forecast to surpass $600 million by 2026.