This high growth rate was primarily attributed to the rising demand for disaggregated WDM and data center interconnect (DCI).
“Following six quarters of soft sales in optical transport, it was great to see this market recover and post a strong double-digit growth rate,” says Dell’Oro vp Jimmy Yu, “one area contributing to the strong growth for optical was the rising demand for disaggregated WDM, a concept that arose over a decade ago when both cloud providers and communication service providers wanted to have a more open, vendor-agnostic environment. One where a network operator had more choice in suppliers for transponders, optical line systems, and pluggable optics.
The Optical Transport market growth was due to higher year-over-year (Y/Y) revenue for both optical transport systems and ZR/ZR+ optical plugs for IPoDWDM.
The Disaggregated WDM market outperformed expectations in the quarter, growing nearly 35 percent Y/Y due to strong demand across all of the individual technology segments: transponder units, optical line systems (OLS), and ZR/ZR+ optics for IPoDWDM.
Communication service provider spending returned to growth in the quarter, increasing slightly from the same period a year ago.
Cloud providers, once again, drove the vast majority of the optical revenue growth in the quarter: direct cloud provider purchases of WDM systems grew 60 percent Y/Y.
The top six vendors in the quarter, ranked by revenue share, were Huawei, Ciena, Nokia, ZTE, FiberHome, and Cisco.
