Fueled by service providers' ongoing migration to 40G and 100G transport, DWDM equipment market revenues rose 19 percent to $7.3 billion in 2011. And while the DWDM market saw growth within all of the world's regions, Dell'Oro said in its Optical Transport report that North America saw the majority of the growth.
Led by the trio of Huawei, Ciena (Nasdaq: CIEN) and Alcatel-Lucent (NYSE: ALU), the 40G and 100G wavelength market grew over 60 percent, contributing almost one-third of the DWDM equipment segment's revenues in 2011.
During 2011, these vendors saw a steady stream of 100G deployments with the likes of Allstream, BT, China Telecom, and France Telecom/Orange.
Jimmy Yu, Vice President of Optical Transport research at Dell'Oro Group, does not foresee DWDM equipment sales letting up any time soon.
"The total DWDM market, which includes both metro and long haul applications, will likely maintain strong growth in 2012," he said. "We believe the total DWDM market is on a path to surpass the revenue levels reached back in 2000, when the DWDM market peaked at $7.7 billion."
Yu added that the research group has forecast "the total DWDM market to reach $8.0 billion in 2012."
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