Optical Transport Equipment Market Update After 2024 Decline

According to a new report by Dell'Oro Group, the Optical Transport equipment market is forecasted to experience a growth after the steep decline in 2024. The decline was caused by oversupply and poor macroeconomic conditions. 

The optical market is projected to grow—after this corrective period—at an average annual rate of 4% for the next five years, bringing the market size to $16 billion by 2029.

"We believe the Optical Transport equipment revenue decline in 2024 was a corrective phase in the market cycle to align supply with demand," said Jimmy Yu, Vice President at Dell'Oro Group. "Typically, after taking a step back on purchases, service providers are better positioned to judge future equipment needs, creating a more positive environment for both the network operators and equipment manufacturers."