The optical transport network equipment market declined in 2Q18 due to the ZTE ban, according to a recently published report from Dell'Oro Group, a source for market information about the telecommunications, networks, and data center IT industries.
As a result of the ZTE ban, revenue from China declined 13% year-over-year.
"The optical transport network equipment market year-over-year decline in 2Q18 was entirely due to fewer sales into China," says Dell'Oro Group vice president Jimmy Yu.
"Demand outside of China continued to improve, which is a great sign for the overall market health. Now that the ZTE ban has been lifted, we think optical revenue from China will increase substantially in the second half of the year.
Additional highlights from the 2Q18 Optical Transport Quarterly Report:
- Huawei held the highest Optical Transport market share in the quarter followed by Ciena and Nokia.
- Demand for interconnecting data centers (DCI) with WDM links maintained a high growth rate.
- Dell'Oro estimates that DCI grew nearly 40% year-over-year, driven by both U.S. and Chinese based internet content providers.
- Deployment of 200 Gbps coherent wavelengths was exceptionally strong in the quarter. Due to the tidal shift towards wavelength speeds higher than 100 Gbps, Dell'Oro predicts that 200 Gbps shipments will be two times higher in 2018, and revenue contribution from 100 Gbps shipments will slow further.
The Dell'Oro Group 'Optical Transport Quarterly Report' offers complete, in-depth coverage of the market with tables covering manufacturers' revenue, average selling prices, unit shipments (by speed including 40 Gbps, 100 Gbps, 200 Gbps, and 400 Gbps).
The report tracks DWDM long haul terrestrial, WDM metro, multiservice multiplexers (SONET/SDH), optical switch, optical packet platforms, and data center interconnect (metro and long haul).
