Excess Inventory and Uncertain Macroeconomic
Conditions Holding Market Down
REDWOOD
CITY, Calif., May 24, 2024
/PRNewswire/ -- According to a recently published report
from Dell'Oro Group, the trusted source for market information
about the telecommunications, security, networks, and data center
industries, the Optical Transport equipment market declined 13
percent year-over-year in 1Q 2024 and is now predicted to decline
for the full year 2024.
"Customer's excess inventory of DWDM systems continued to be at
the center stage of the Optical Transport market decline in the
first quarter of 2024," said Jimmy
Yu, Vice President at Dell'Oro Group. "However, we think the
steeper-than-expected drop in optical transport revenue in 1Q 2024
may have been driven by communication service providers becoming
increasingly cautious about the macroeconomic conditions, causing
them to delay projects into future quarters," added Yu.
Additional highlights from the 1Q 2024 Optical Transport
Quarterly Report:
- The Optical Transport market is forecast to decline by 2
percent in 2024 due to customers working through inventory and
exercising controlled capital spending in an uncertain economic
environment.
- The DWDM market declined in most parts of the world. The
largest declines were in North
America and parts of Asia
Pacific. The only two markets that grew year-over-year were
China and the Middle East and Africa (MEA) region. China grew 8 percent and MEA grew 16
percent.
- Three vendors—Cisco, Huawei, and ZTE—gained more than 1
percentage point of market share in 1Q 2024 compared to the year
ago period.
About the Report
The Dell'Oro Group Optical Transport
Quarterly Report offers complete, in-depth coverage of the market
with tables covering manufacturers' revenue, average selling
prices, and unit shipments (by speed up to 1.2+ Tbps). The report
tracks DWDM long haul, WDM metro, multiservice multiplexers
(SONET/SDH), optical switch, optical packet platforms, data center
interconnect (metro and long haul), and disaggregated WDM. To
purchase this report, please contact us
at dgsales@delloro.com.
About Dell'Oro Group
Dell'Oro Group is a market
research firm that specializes in strategic competitive analysis in
the telecommunications, security, enterprise networks, and data
center infrastructure markets. Our firm provides in-depth
quantitative data and qualitative analysis to facilitate critical,
fact-based business decisions. For more information, contact
Dell'Oro Group at +1.650.622.9400 or visit
https://www.delloro.com.
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SOURCE Dell'Oro Group