Looking a few years ahead, Dell’Oro Group released a new study that reveals the total worldwide dense wavelength division multiplexing or “DWDM” optical transport equipment market will reach $9.3 billion in revenue in 2014. What’s more, $3 billion plus will come from 40/100 Gbps equipment.
The research facility claimed that its new “Five-Year Forecast Report” offers a complete overview of the Optical Transport industry with tables covering manufacturers’ revenue, average selling prices, unit shipments Tributary/Line or Wavelength shipments -- by speed up to 100 Gbps.
A director of Optical Transport research at Dell’ (News - Alert)Oro Group said that the demand for 40 Gbps DWDM was resilient in 2009 even as the market for optical equipment was under extreme pressure. The year 2009 saw the 40 Gbps DWDM revenue double even when the overall DWDM market declined. Though the 100 Gbps equipment is available in the market, they expect demand for 40 Gbps DWDM to expand and their studies have forecasted a 55 percent CAGR over the next five years, in large part because of the price premium of 100 Gbps.
The company expects the volume of 100 Gbps DWDM shipments to increase from 2012 when the price of 100 Gbps wavelengths will be lower than that of 40 Gbps wavelengths.
The need for 100 Gbps equipment is on the rise because in the past service providers tend to deploy different networks for each access technology or service but now they are merging these services and technologies into one IP backbone. This puts a lot of pressure on the core backbone network to handle huge volumes of traffic and 40/100 Gbps DWDM Optical Transport equipment can help networks handle high volumes of traffic.
Dell’Oro has stated that their new report on optical transport equipment tracks DWDM long haul terrestrial, WDM metro, multiservice SONET/SDH, and optical switch equipment.
Nathesh is a contributing editor for TMCnet. To read more of Nathesh's articles, please visit his columnist page.
Edited by Marisa Torrieri