WDM transport spending weakens in Q2 – Cignal AI

BOSTON – Worldwide spending on optical transport hardware declined by 2% YoY during 2Q23, according to the most recent preliminary Transport Hardware Report from research firm Cignal AI.

Supply chains have recovered, but macroeconomic concerns are causing some network operators to delay projects and postpone delivery of ordered hardware by several quarters. Sales of Routing equipment remain mixed, with Enterprise and Hyperscale network operators continuing to build, and 5G applications subject to strong pullbacks.

“The optical market is clearly showing signs of weakness, India is the only bright spot.” said Kyle Hollasch, Lead Analyst for Transport Hardware at Cignal AI. “Large network operators are absorbing inventory accumulated during the supply chain uncertainties of 2022, and hyperscalers are reverting to just-in-time ordering as lead times come down.”

Read the full press release here.

Cignal AI