The optical transport network equipment market fell in Q2 2018 due to 13 percent drop in China revenue as a result of the ZTE ban.

ZTE could not supply optical transport network equipment due to a ban on sourcing tech components from US companies.

“The optical transport network equipment market decline was entirely due to fewer sales into China,” said Jimmy Yu, vice president at Dell’Oro Group.

Demand outside of China continued to improve, which is a great sign for the overall market health.

Since the ban on ZTE is lifted, optical revenue from China will increase substantially in the second half of the year.

Huawei is the number one brand in the global optical transport market in the second quarter, the report said. Ciena is the second largest optical transport network equipment supplier.

Nokia is in the third place in the optical transport network equipment market.

Demand for interconnecting data centers (DCI) with WDM links maintained a high growth rate. DCI grew nearly 40 percent year-over-year, driven by both US and China based internet content providers.

Deployment of 200 Gbps coherent wavelengths was exceptionally strong in the quarter. Due to the tidal shift towards wavelength speeds higher than 100 Gbps, 200 Gbps shipments will be two-times higher in 2018, and revenue contribution from 100 Gbps shipments will slow further.

A recent report in Research and Markets said the global optical transport network equipment market is expected to grow at a CAGR of 21.68 percent during the period 2017-2021.

Ciena, Cisco Systems, Coriant, FUJITSU, Huawei Technologies, Infinera, Nokia, ZTE, ADTRAN, ADVA Optical Networking, Juniper Networks, ECI TELECOM, Ericsson and NEC Technologies are some of the companies associated with the optical transport network equipment industry.