Date: 28th July 2010

Worldwide DWDM Optical Equipment Revenue to reach $9.3 Billion by 2014

Dell'Oro Group in its optical forecast report has predicted the total worldwide DWDM Optical Transport equipment revenue to reach $9.3 billion in 2014 with over $3 billion generated from 40/100 Gbps.

"The demand for 40 Gbps DWDM was resilient in 2009 even as the market for optical equipment was under extreme pressure," said Jimmy Yu, Sr. Director of Optical Transport research at Dell'Oro Group. "40 Gbps DWDM revenues more than doubled in 2009 even though the overall DWDM market declined. Despite the availability of 100 Gbps DWDM, we think demand for 40 Gbps DWDM will continue to expand, and are forecasting a 55 percent CAGR over the next five years, in large part because of the price premium of 100 Gbps. This doesn't mean that there's no demand for 100 Gbps. We think 100 Gbps DWDM shipments will also grow, but that the higher volumes probably won't occur until late 2012 when we think the price of 100 Gbps wavelengths will be lower than that of 40 Gbps wavelengths," added Mr. Yu.