Fueled by a seemingly never-ending demand for backhaul capacity in both fixed and mobile broadband networks, optical transport revenues will grow to almost $19 billion by 2016, according to Dell'Oro's new Optical Transport forecast report.
One element that will see the continued growth in the optical transport segment will be DWDM transport, which is expected to grow at a 10 percent compounded annual growth rate (CAGR) over the next five years, reaching $12 billion.
Jimmy Yu, Vice President of Optical Transport Market Research at Dell'Oro Group, argues that there will be three key trends that will drive growth in the optical market during the period.
Among those trends will be the ongoing shift to packet-based equipment, the growing use of OTN, MPLS, and MPLS-TP for both transport and switching, and the increasing demand for 40 Gbps and 100 Gbps DWDM.
In particular, the increasing demand for 40 Gbps and 100 Gbps DWDM systems will "contribute about 60% of the DWDM sales by 2016."
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