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Future for optical transport equipment looks good

A new report forecasts that total optical transport equipment market will be worth US$7.8 billion within four years...


August 6, 2004  


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A new report forecasts that total optical transport equipment market will be worth US$7.8 billion within four years.

Following three years of decline, the research firm the Dell’Oro Group forecasts that metro applications of optical transport equipment will lead the optical market into a recovery. Sales into metro applications are expected to grow from US$3.9 billion in 2003 to US$4.9 billion in 2008.

“The majority of the growth in metro applications will occur in 2004 and 2005 as service providers focus on delivering new services, such as broadband and video to the residential market and Ethernet services to the enterprise market,” said Jimmy Yu, senior analyst of optical transport equipment at Dell’Oro.

“DWDM Metro will be one of the principal mechanisms to deliver these high bandwidth services and we are predicting 73% growth for the worldwide DWDM Metro market between 2003 and 2008. Re-configurable optical add/drop multiplexers or ROADMs will enable service providers to use DWDM equipment in their metro infrastructure, since these products allow remote reconfiguration of DWDM networks.”

The report indicates that the SONET/SDH Multiservice and Optical Switch markets will also have strong growth potential driven by the increased demand in metro applications.