The optical transport market rose to $2.87 billion in the first quarter of 2015 as service providers increased spending on WDM equipment to satisfy growing data interconnection needs, says Dell'Oro Group.
WDM was the fastest growing segment in the optical market. Comprising 76 percent of the optical market's revenue, WDM equipment grew 5 percent year-over-year.
"One of the main drivers for WDM equipment demand is the interconnection of data centers, which are on the rise as users increase their consumption of content such as video," said Jimmy Yu, vice president of Optical Transport research at Dell'Oro Group, in a release. "Of greater interest in the optical market is the changing customer type, as more of these data center interconnects (DCI) are purchased directly by the enterprise rather than as a service from an operator."
Yu added that about 12 percent of WDM revenues in the first quarter were generated from data center interconnection, purchased directly by enterprise customers.
- see the release
Service providers signal large-scale NFV deployments are coming, says Dell'Oro
Dell'Oro: Data centers to drive new Ethernet switch growth
Service provider interest in packet-optical transport deployments wanes, says IHS Infonetics