Optical Transport Equipment Market Grew 9 Percent in 3Q 2020 to $3.8 Billion

Optical networking equipment growth in Asia Pacific offset lower demand in the Americas region.

  • Dell'Oro Group

REDWOOD CITY, Calif.--Optical transport equipment revenue increased 9 percent year-over-year in the third quarter 2020 reaching $3.8 billion, according to Dell’Oro Group. The research firm attributed market growth to higher demand in Asia Pacific.

"Sales slowed in North America following a strong first half of the year," said Jimmy Yu, Vice President at Dell'Oro Group. "Whether it was due to network demand caused by people working and studying from home or new projects at the beginning of the year, the demand for optical equipment in the region rose 11 percent in the first half of 2020.”

Yu added, “I think there was enough concern surrounding the longevity of the pandemic that service providers grew cautious and refrained from overextending their capital. As a result, optical revenue in North America declined 7 percent in the third quarter.”

Growth in Asia Pacific more than offset the lower revenue in North America and Latin America. Optical revenue grew 22 percent year-over-year in Asia Pacific, driven largely by higher deployments in China and Japan. Also, with lockdown restrictions easing, some regions such as Middle East and Africa (MEA), significantly rebounded in the quarter following a sharp decline in the first half of 2020. Sales in China, Japan, and MEA each grew over 25 percent.

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