Industry News
2023 Global Optical Transmission Hardware Spending Declines 2% YoY
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Author : JIUZHOU
Update time : 2023-08-25 14:01:13
In the second quarter of 2023, global optical transmission hardware spending decreased by 2% year-on-year. Supply chains have resumed, but network operators are working off inventories and suspending orders
According to the research firm's latest preliminary transport hardware report, global spending on optical transport hardware (Optical Transport Hardware) fell 2% year-over-year in the second quarter of 2023.
Supply chains have resumed, but macroeconomic concerns are causing some network operators to delay projects and delay delivery of ordered hardware by several quarters. Sales of routing equipment remained mixed, enterprise and hyperscale network operators continued to build, and 5G adoption also saw a sharp pullback.
"The optical network market is clearly showing signs of weakness, with the Indian market being the only bright spot. Large network operators are digesting inventory accumulated during supply chain uncertainty in 2022; as lead times shorten, Hyperscalers are returning to a just-in-time procurement model.”
Additional findings from the Q2 2023 Transmission Hardware Report:
The global routing market grew by 16%, the seventh consecutive quarter of growth for the market, and this was achieved amid a sharp reduction in spending on 5G networks in the West.
After 18 months of rapid growth, the North American market flattened out in 2023. Revenue increased on the back of strong demand from hyperscale operators and shipments from a large backlog.
Optical sales in the EMEA (Europe, Middle East and Africa) region were flat, but routing sales rose 27%, led by Huawei and Nokia. Huawei's optical revenue fell for the fourth consecutive quarter, while Nokia's revenue has been growing for the past three quarters.
Spending in the Asia-Pacific region has surged as Indian operators continue to build out their networks.
The report examines device revenue in six regions around the world. The types of end customers it tracks include traditional service providers, cloud/hyperscale operators, and enterprise/government network operators.
According to the research firm's latest preliminary transport hardware report, global spending on optical transport hardware (Optical Transport Hardware) fell 2% year-over-year in the second quarter of 2023.
Supply chains have resumed, but macroeconomic concerns are causing some network operators to delay projects and delay delivery of ordered hardware by several quarters. Sales of routing equipment remained mixed, enterprise and hyperscale network operators continued to build, and 5G adoption also saw a sharp pullback.
"The optical network market is clearly showing signs of weakness, with the Indian market being the only bright spot. Large network operators are digesting inventory accumulated during supply chain uncertainty in 2022; as lead times shorten, Hyperscalers are returning to a just-in-time procurement model.”
Additional findings from the Q2 2023 Transmission Hardware Report:
The global routing market grew by 16%, the seventh consecutive quarter of growth for the market, and this was achieved amid a sharp reduction in spending on 5G networks in the West.
After 18 months of rapid growth, the North American market flattened out in 2023. Revenue increased on the back of strong demand from hyperscale operators and shipments from a large backlog.
Optical sales in the EMEA (Europe, Middle East and Africa) region were flat, but routing sales rose 27%, led by Huawei and Nokia. Huawei's optical revenue fell for the fourth consecutive quarter, while Nokia's revenue has been growing for the past three quarters.
Spending in the Asia-Pacific region has surged as Indian operators continue to build out their networks.
The report examines device revenue in six regions around the world. The types of end customers it tracks include traditional service providers, cloud/hyperscale operators, and enterprise/government network operators.
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