In the next 5 years, the DWDM market will exceed $17 billion

According to Dell‘Oro Group, demand for optical transmission DWDM equipment is expected to exceed $17 billion by 2026. The $17 billion in revenue from dense wavelength division multiplexing (DWDM) devices represents the majority of revenue across the optical transmission equipment market. Dell‘Oro predicts that by 2026, the entire market will grow to $18 billion at a compound annual growth rate (CAGR) of 3% due to sales of DWDM systems with wavelength velocities exceeding 200 Gbit/s. Omdia researchers are also bullish on the growth of the optical networking market, which they expect to exceed $20 billion by 2027.

Dell‘Oro predicts that DWDM long-haul revenue will grow at a five-year COMPOUND annual growth rate of 5%. Over the same period, the team predicts that metro wavelength division multiplexing revenue will grow at a compound annual growth rate of 3%. Analysts at Omdia predict that the metro WDM market will exceed $9 billion by 2026.