Worldwide optical transport market revenue is forecast to grow at seven percent compounded annual growth rate (CAGR), according to the latest industry forecast from Dell' (News - Alert)Oro Group.
The growth will be mainly driven by the demand for a new generation of equipment, the report said.
The optical transport market is evolving. In each new generation of optical equipment, there have been two distinct evolutions: the first being higher speed interfaces and the second being better packet transport capabilities, according to the report.
The higher speed interfaces evolution is driven by the movement towards 100 gigabit DWDM while the improved packet transport capabilities are driving the market for OTN and MPLS/MPLS-TP.
The research firm expects the 100 gigabit DWDM wavelength shipments to grow at greater than 120 percent each year for the next five years.
The Dell'Oro Group 5-Year Forecast Report tracks DWDM long haul terrestrial, WDM metro, multiservice multiplexers, and optical switch equipment.
Other recent researches also confirm that the DWDM market is growing significantly faster than the overall optical hardware market. This is mainly because carriers all over the world move away from legacy SONET/SDH technology and deploy DWDM infrastructures that can support 40G and 100G speeds.
In a recent report on optical transport market, "DWDM and WDM: Market Shares, Strategies, and Forecasts, Worldwide, 2012 to 2018," Susan Eustis, lead author of the study, cited that video, cloud-based services, the internet, and machine-to-machine (M2M) drive significant traffic to the network, stimulating the need for DWDM.
According to the research from WinterGreen Research, worldwide optical transport DWDM equipment market revenue is forecast to grow 10 percent year-over-year from $4.3 billion in 2011 to $9 billion by 2018. This is in the context of a world communications infrastructure that is changing. Technology is enabling interaction, innovation, and sharing of knowledge in new ways, the report said.
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Edited by Brooke Neuman