According to a newly published forecast report by Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, Optical DWDM equipment is forecast to reach $18 billion in market revenue by 2028. The entry of coherent DSPs capable of delivering wavelength speeds over one terabit-per-second is expected to drive the market growth for the next five years.

“We are projecting the new generation of coherent DSPs that are capable of terabit speeds will grow at an accelerated pace over the next five years,” said Jimmy Yu, vice president at Dell’Oro Group. “By 2028, we expect over half of the DWDM market revenue will be derived from shipments of 1.2 Tbps and 1.6 Tbps-capable line cards. These new line cards will bring 400 Gbps wavelength into ultra-long-haul applications that cross thousands of kilometers, and 800 Gbps wavelengths everywhere else,” added Yu. 

Additional highlights from the Optical Transport 5-Year January 2024 Forecast Report:

  • Demand for DWDM Long Haul equipment is projected to grow at a faster pace than Metro equipment and contribute a higher share of market revenue going forward
  • Shipment of coherent wavelengths capable of terabit-per-second speeds is forecast to grow at a 200% CAGR over the next five years
  • Baud rates over 100 GHz will surpass 40% of new installations by 2028. High baud rates will reduce the total number of wavelengths per fiber, but the larger channels will deliver better performance and longer reach while reducing cost.