“Although there is a ton of market turbulence, we do not see demand for DWDM equipment letting up,” said Jimmy Yu, Vice President at Dell’Oro Group. “In fact, the biggest issue is that demand seems to be growing faster than supply. Hence, even if a mild recession were to occur, we think the worst case scenario is that demand will align with supply sooner.

“We have not made any changes to the potential market calculations and still estimate private wireless is a massive opportunity,” said Stefan Pongratz, Vice President at Dell’Oro Group.  “At the same time, the message we have communicated for some time still holds – we still envision the enterprise and industrial play is a long game.

“The July 2022 forecast is more conservative than the January 2022 forecast due to industry headwinds, including supply chain challenges, higher inflation, an impending recession, Mobile Network Operators’ (MNO) challenges to increase revenues, and regional political conflicts,” said Dave Bolan, Research Director at Dell’Oro Group .

“Even with the unusual uncertainty surrounding the economy, the war in Ukraine, the supply chains, and China’s zero-Covid-19 policy, the baseline scenario assumes that risks have changed but the underlying fundamentals remain healthy,” said Stefan Pongratz, Vice President and analyst with the Dell’Oro Group.