Optical Transport equipment revenue in North America grew 14 percent in 2022, surpassing $4.0 billion. Among the large optical equipment suppliers, Fujitsu and Infinera stood out with revenue growth far exceeding the market's growth rate.

The research firm noted that the largest suppliers in North America were Ciena, Cisco, Fujitsu, and Infinera. Out of this group of vendors, Fujitsu and Infinera sharply outperformed. Fujitsu's optical equipment revenue grew 80 percent year-over-year and Infinera's grew 38 percent.

Internet content provider spending on WDM equipment rebounded in the fourth quarter of 2022 after an unexpected drop in the third quarter, contributing to the strong North American results in the fourth quarter.

"Demand for optical systems in North America continued to be robust, surpassing even my lofty expectations," said Jimmy Yu, Vice President at Dell'Oro Group. "The fourth quarter was solid since many vendors received more component supply than expected, allowing for higher systems shipments.”

Yu added, “we believe this may signal that component shortages are beginning to abate.”

Although demand for optical systems remains strong, Dell’Oro found that currency exchange rate continued to be a concern throughout 2022, lowering market results in many regions. On a constant currency basis, the worldwide optical transport market grew approximately 4 percent in the year and the total WDM market grew approximately 5 percent.