Metro network WDM demand to drive optical transport market to $15B by 2019, says analyst firm

WDM vendors like Alcatel-Lucent (NYSE: ALU), Ciena and Cisco will continue to see revenue benefits over the next four years as more service providers upgrade their metro networks, a segment that Dell'Oro says will grow at a 10 percent compounded annual growth rate (CAGR). Demand for metro WDM capacity will drive up the overall optical transport revenues to $15 billion by 2019.

During this four-year period, service providers will continue to deploy a mix of 100G and 200G wavelengths in their networks. The research firm forecast that over 75 percent of WDM capacity will be from 100G wavelengths, while 200G will contribute nearly 25 percent of WDM metro equipment revenue by 2019.

Jimmy Yu, VP of optical transport market research at Dell'Oro Group, said in a release that the majority of metro equipment sales will come from traditional service providers, but content providers and financial trading companies will contribute to overall growth as they install their own 100G networks.

"The majority of metro equipment purchases will still be made by telecom service providers, expanding their metro network capacity for higher speed services, but we also see a strong trend towards enterprises such as Internet content providers and financial institutions procuring and installing their own high speed 100 Gbps links. This trend is being powered by the increasing importance of data centers to a company's core business," Yu said. Release