Cloud Spending on Optical Transport Jumps 46% in 4Q23 – Cignal AI

BOSTON – Cloud operator spending on optical transport equipment exceeded $750M in 4Q23 to close out a record spending year, according to the most recent Transport Hardware Report from research firm Cignal AI. However, traditional service provider optical spending remained weak in North America and EMEA and is not expected to recover until 2025.

Additional 4Q23 Transport Hardware Report Findings:

About the Transport Hardware Report

Cignal AI’s Transport Hardware & Markets Report is issued each quarter and examines optical and packet transport equipment revenue across all regions, customers, and equipment types. The initial analysis is based on financial results, independent research, and guidance from individual equipment companies. Hardware forecasts are reviewed and updated in the following weeks, along with spending trends by operator type.

The report examines revenue for metro WDM, long-haul WDM and submarine (SLTE) optical equipment, and access, aggregation, edge, and core packet equipment in six global regions. It also tracks equipment spending by end-customer market type, including traditional service provider, cloud/hyperscale, and enterprise/government network operators. Key market segments such as Compact Modular and Packet-OTN equipment as well as shipments of ROADMs are also included. Vendors in the report include Adtran, Alaxala, Ciena, Cisco, Ekinops, Fiberhome, Fujitsu, Huawei, Infinera, Juniper, Mitsubishi Electric, NEC, Nokia, Padtec, Ribbon, Smartoptics, Tejas, Xtera, ZTE as well as other vendors.

Read the full press release here.

Cignal AI