Optical transport equipment market to return to growth following 2024 correction – Dell'OroOptical transport equipment market to return to growth following 2024 correction – Dell'Oro

Optical market forecast to grow at five-year CAGR of 4%. #pressrelease

January 21, 2025

1 Min Read

According to a newly published forecast report by Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the Optical Transport equipment market is forecast to return to growth following a steep decline in 2024 that was caused by oversupply and poor macroeconomic conditions. After this corrective period, the optical market is projected to grow at an average annual rate of 4 percent for the next five years, bringing the market size to $16 billion by 2029.

Additional highlights from the Optical Transport 5-Year January 2025 Forecast Report:

  • Cumulative WDM capacity installed is forecast to grow at a 30 percent average annual rate through 2029 when accounting for the extra capacity installed before the pandemic and the subsequent inventory correction that followed.

  • While much of data center interconnect (DCI) is projected to shift to IPoDWDM in metro applications, DWDM Long Haul for DCI is expected to grow at a five-year CAGR of 12 percent, driven by large Internet content providers (ICPs).

  • The market will continuously shift to higher wavelength speeds to reduce the price-per-bit and increase spectral efficiency. The highest speed available in 2025 is 1.6 Tbps-capable wavelengths. We believe 2.4 Tbps-capable coherent technology is under development and will be available as early as 2027.

Read the full press release here.

Dell'Oro

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