Optical and routing hardware spending drops 15% in 1Q24 – Cignal AI

Spending in North America on optical transport equipment declined for the 4th straight quarter, while routing dropped to levels last seen in 2020. #pressrelease

May 29, 2024

1 Min Read

There was no relief in 1Q24 for Optical and Routing Transport equipment, according to the 1Q24 Transport Hardware Report from research firm Cignal AI. While spending by cloud operators continued to grow, it was more than offset by the ongoing decline in purchasing among traditional service providers.

Additional 1Q24 Transport Hardware Report Findings:

  • Spending in North America on Optical Transport equipment declined for the 4th straight quarter, while Routing dropped to levels last seen in 2020.

  • Cloud Operator expenditures hit double digits while traditional service providers continued to cut back. Sales to Cloud & Colo operators exceeded Service Provider spending for the second consecutive quarter. Ciena remains the primary beneficiary of Cloud spending.

  • Network operators in EMEA spent cautiously, apart from buildouts for cloud operators, which grew almost 50%.

  • Chinese operators are upgrading long-haul WDM infrastructure, and the latest contract awards benefitted Huawei, ZTE, and Fiberhome. Routing equipment in the region remains flat.

  • Now that Indian operators have completed a series of 5G related builds, spending in RoAPAC (ex-China and Japan) is in a downturn.

Read the full press release here.

CignalAI

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