Dell'Oro: DWDM Equipment Market Forecast To Exceed $17 Billion in Five Years

Demand for optical transport DWDM equipment is expected to exceed $17 billion by 2026, according to market research firm Dell'Oro.

The $17 billion revenue of DWDM equipment accounts for most of the revenue of the entire optical transmission equipment market. Dell'Oro predicts that by 2026, the annual growth rate of the entire optical transmission market will reach US$18 billion at a compound annual growth rate (CAGR) of 3%, mainly benefiting from the growth of devices with speeds above 200G. Researchers at Omdia are also bullish on the growth of the optical networking market, which they predict will exceed $20 billion by 2027.

Dell'Oro forecasts that backbone DWDM revenue will grow at a CAGR of 5% over the next five years, while metro WDM revenue will grow at a 3% CAGR over the same period. Meanwhile, analysts at Omdia, another consulting firm, say the metro WDM market will exceed $9 billion by 2026, as shown in the chart below.

Additionally, Dell'oro expects backbone DWDM sales to grow faster than metro WDM sales over the five-year period. Jimmy Yu, vice president of Dell'Oro Group, said in a statement that despite the "market turmoil" that the DWDM market has experienced for quite some time, no drop in demand is expected.

"In fact, demand growing faster than supply will become a new problem," Yu said. "So even if there is a slight downturn in the market, the worst-case scenario is that demand will be at the same level as supply sooner."

Yu also pointed out that the main difference in the DWDM market in the next five years compared to previous years may be that "DWDM will contribute more growth because of IP over DWDM (IPoDWDM), which may reduce the interoperability of metro WDM in data centers. use in connection.”

Hubei Chenyu Optoelectronics will closely follow the market, launch DWDM products, and increase product cooperation.