Market Dynamics are Different in North America
REDWOOD CITY, Calif. – December 5, 2023 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the North American Optical Transport equipment market contracted 4 percent year-over-year (Y/Y) in 3Q 2023. This is in contrast to the market outside the North American region where demand improved for a third consecutive quarter, growing 6 percent Y/Y.
“The market dynamics are different in North America than other parts of the world because the supply chain and component crises resulted in a run for optical equipment,” said Jimmy Yu, Vice President at Dell’Oro Group. “Then when component supply improved, service providers started to receive more equipment than they needed, creating a pause in new orders and requests to move out deliveries into 2024. The market dynamics were different in other regions for varying reasons such as Covid policies slowing economic growth in some countries and a war in others. Hence, service providers in these countries did not build inventory in early 2023,” added Yu.
Additional highlights from the 3Q 2023 Optical Transport Quarterly Report:
- The worldwide Optical Transport market is projected to grow at an average annual rate of 3 percent, reaching $16 billion by 2024.
- The North American and Latin American regions declined Y/Y in 3Q 2023 due to a mixture of issues: excess inventory, worsening macro-conditions, fear of recession, and higher borrowing costs.
- Ciena, FiberHome, and Nokia each gained more than one percentage point of market share in the trailing four quarter period compared to a year ago.
The Dell’Oro Group Optical Transport Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, and unit shipments (by speed including 100 Gbps, 200 Gbps, 400 Gbps, and 800 Gbps). The report tracks DWDM long haul, WDM metro, multiservice multiplexers (SONET/SDH), optical switch, optical packet platforms, data center interconnect (metro and long haul), and disaggregated WDM. To purchase this report, please contact us at dgsales@delloro.com.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks, and data center infrastructure markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit https://www.delloro.com.
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