Jimmy Yu

Vice President

Dell’Oro Group’s Optical Transport reports track the global market for wavelength division multiplexing (WDM) systems and optical networking infrastructure across long-haul, metro, and data center interconnect (DCI) applications. The reports provide detailed analysis of manufacturer revenue, port and wavelength shipments, average selling prices, and vendor market share, with segmentation by technology, application, customer type, and region.

Coverage includes WDM systems, Optical Line Systems (OLS), ZR/ZR+ pluggable optics used in IPoDWDM, and disaggregated WDM architecture, along with visibility into coherent wavelength speeds and deployment trends.

Optical transport is evolving alongside shifts in cloud and AI infrastructure. While telecom networks continue to require steady capacity upgrades, the center of gravity has moved toward data center interconnect (DCI), where hyperscalers and neoclouds are driving demand for higher-capacity, more efficient optical solutions.

This research focuses on how the market is transitioning to higher-speed coherent optics (400 Gbps, 800 Gbps, 1.2 Tbps, and beyond), and how architectures such as IPoDWDM with ZR/ZR+ pluggables are changing deployment models. It also examines the growing role of disaggregated optical systems, where transponders, line systems, and pluggables are increasingly deployed independently, particularly in cloud-driven environments.

Optical transport is increasingly tied to cloud and AI infrastructure, with hyperscaler-driven DCI demand reshaping the market. Growth is being fueled by coherent optics and pluggable solutions such as ZR/ZR+, enabling IPoDWDM architectures and reducing reliance on traditional transponders. At the same time, migration to 800 Gbps, 1.2 Tbps, and higher-capacity wavelengths is accelerating to improve fiber efficiency. As disaggregated deployments expand, vendor dynamics are shifting, positioning optical transport growth more closely to data center investment cycles.

To take advantage of the opportunities in this market, component manufacturers, equipment vendors, service providers, and financial institutions need to answer critical business questions, including:

  • Where is the market growing? How many coherent WDM ports are shipping?
  • What is the adoption rate of new technologies such as ZR/ZR+ optics, 1.6 Tbps wavelengths? When will 2.4 Tbps shipments become material?
  • What is the market opportunity for my product?
  • Which equipment vendors lead the market, and why?

To answer these and other important questions, Dell’Oro Group delivers both quarterly reports and 5-year forecasts on the Optical Transport market.

Optical Transport Quarterly Reports

Metrics

  • Manufacturer revenue
  • Units, wavelengths, interfaces, and ports shipped
  • Average selling prices

Technology Coverage

  • Multiservice multiplexers (SONET/SDH)
  • DWDM long haul
  • WDM metro
  • Optical Line Systems (OLS)
  • IPoDWDM ZR/ZR+ optical plugs
  • Optical Packet Platforms
  • Data center interconnect application (metro and long haul)
  • Coherent DWDM Wavelength (Operating Speed, Highest Speed Capable)
  • Disaggregated WDM (Transponders, OLS, and ZR/ZR+ Optical Plugs)

Segmentation

  • Customer segments: Communication Service Provider, Cloud Provider, Cable MSO, Enterprise/Public
  • Speeds:
    • DWDM: 100/200/ 400/600/800 Gbps/1.2+ Tbps
    • Multiservice Multiplexers: 155 Mbps to 10 Gbps
  • Regions: North America, Europe, MEA, Asia Pacific, China, India, Japan, CALA
  • Vendor market share:
    • By technology segment
    • By region
    • By customer segment
    • By DCI and subsea applications

Optical Transport 5-Year Forecasts

Dell’Oro Group publishes Optical Transport 5-year forecasts offering a complete overview of the market with historical data from 1998 to the present. The forecasts provide a comprehensive overview of market trends and include tables covering revenue, unit/port/wavelength shipment, average selling price, and regional forecasts for various technologies:

  • Coherent DWDM Wavelength (Operating Speed, Highest Speed Capability, Capacity)
  • WDM (Metro and Long Haul)
  • OLS
  • IPoDWDM ZR/ZR+ optical plugs
  • Multiservice Multiplexer
  • Optical Packet Platform
  • Data Center Interconnect
  • Disaggregated WDM
  • Customer Segments

Click here to contact us to learn more about the Optical Transport research program and available purchasing options.