“Demand for optical systems in North America continued to be robust, surpassing even my lofty expectations,” said Jimmy Yu, Vice President at Dell’Oro Group. “The fourth quarter was particularly strong since many vendors received more component supply than expected, allowing for higher systems shipments. We believe this may possibly be a signal that component shortages are beginning to abate,” added Yu.

“The worldwide market, excluding China, returned to a positive year-over-year (Y/Y) growth rate in 4Q 2022, the first since 3Q 2021,” stated Dave Bolan, Research Director at Dell’Oro Group. “For the whole year, 2022, the Y/Y growth rate was negative, but we expect the return to a positive Y/Y growth rate started in 4Q 2022 to continue throughout 2023 for the market outside China…

“Demand for Microwave Transmission is on the rise as 5G deployments expand geographically,” stated Jimmy Yu, Vice President at Dell’Oro Group. “We are expecting this growth trend to continue for many more years,” added Yu.

“The results in the quarter further validate the reduced growth scenario we have discussed now for some time, reflecting more challenging MBB comparisons in the more advanced 5G markets,” said Stefan Pongratz, Vice President at Dell’Oro Group.

“The last three years of the pandemic, and the subsequent need to modernize enterprise branches and address hybrid work needs, have fueled great interest in SASE as evidenced by the total SASE market to double in size to over $6 B in 2022,” said Mauricio Sanchez, Research Director, Network Security, and SASE & SD-WAN at Dell’Oro Group.