Dell'Oro: The Optical DWDM Device Market Will Reach $18 Billion By 2028

According to the latest forecast report released by Dell'Oro Group, the market revenue for optical DWDM devices is expected to reach $18 billion by 2028. The entry of coherent DSP capable of delivering wavelength speeds in excess of 1Tbps is expected to drive market growth over the next five years.

New generation of coherent DSP will accelerate the development

Jimmy Yu, Group Vice President at Dell'Oro, said: "We expect the development of a new generation of coherent DSP capable of achieving terabit speeds to accelerate over the next five years. By 2028, more than half of the DWDM market revenue is expected to come from 1.2Tbps and 1.6Tbps line cards.These new line cards will bring 400Gbps wavelengths for ultra-long range applications spanning thousands of kilometers, and 800Gbps wavelengths elsewhere."

Other highlights from the five-year forecast report for optical transmission released in January 2024:

• Demand for DWDM long-distance equipment is expected to grow faster than metro equipment and contribute a higher market revenue share over the next five years.
• Coherent wavelength shipments at terabits per second will grow at a CAGR of 200% over the next five years.
• By 2028, more than 40% of new devices with baud rates over 100 GHz will be available. High baud rates will reduce the total number of wavelengths per fiber, but larger channels will provide better performance and longer coverage while reducing costs.