Industry News
Q2 2025 Optical Transport +14%, Disagg WDM +35%
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Author : JIUZHOU
Update time : 2025-09-12 11:28:13
The global optical transport equipment market grew 14% YoY in Q2 2025. This growth ended a six-quarter downturn. This growth was primarily driven by strong demand for disaggregated wavelength division multiplexing (WDM) and data center interconnects. Direct purchases of WDM systems by cloud service providers surged by 60%.
A recent report from Market Research Group shows the global optical transport equipment market grew 14% YoY in Q2 2025. This marks the first growth after six consecutive quarters of decline. The high growth rate is mainly driven by increasing demand for disaggregated WDM equipment. Data center interconnects also contributed significantly to this expansion.
Vice President of Market Research Group, said:
"After six consecutive quarters of weak optical transport equipment sales," said:
"We are seeing this market recover and show strong double-digit growth."
"One area driving strong growth in the optical transport market is the rising demand for disaggregated WDM."
"This concept first emerged over a decade ago. It was driven by cloud providers and communications service providers seeking a more open, vendor-agnostic environment."
"In this environment, network operators gain greater flexibility in selecting suppliers. They can independently choose transponders, optical line systems, and pluggable optics."
Other highlights from the Optical Transport Quarterly Report for the second quarter of 2025 include:
- The optical transport market experienced growth, fueled by year-over-year revenue increases in optical transport systems. This expansion was further supported by rising demand for ZR/ZR+ optical modules used in IPoD WDM applications.
- The disaggregated WDM market outperformed forecasts this quarter, achieving nearly 35% year-over-year growth. The market surge was fueled by strong demand across all segments. Key drivers included transponder units, optical line systems, and ZR/ZR+ optics for IPoD WDM.
- Spending by communications service providers returned to growth this quarter, increasing slightly compared to the same period last year.
- Cloud providers remained the primary driver of optical transport revenue growth this quarter. Their direct purchases of WDM systems surged by 60% year-over-year.
A recent report from Market Research Group shows the global optical transport equipment market grew 14% YoY in Q2 2025. This marks the first growth after six consecutive quarters of decline. The high growth rate is mainly driven by increasing demand for disaggregated WDM equipment. Data center interconnects also contributed significantly to this expansion.
Vice President of Market Research Group, said:
"After six consecutive quarters of weak optical transport equipment sales," said:
"We are seeing this market recover and show strong double-digit growth."
"One area driving strong growth in the optical transport market is the rising demand for disaggregated WDM."
"This concept first emerged over a decade ago. It was driven by cloud providers and communications service providers seeking a more open, vendor-agnostic environment."
"In this environment, network operators gain greater flexibility in selecting suppliers. They can independently choose transponders, optical line systems, and pluggable optics."
Other highlights from the Optical Transport Quarterly Report for the second quarter of 2025 include:
- The optical transport market experienced growth, fueled by year-over-year revenue increases in optical transport systems. This expansion was further supported by rising demand for ZR/ZR+ optical modules used in IPoD WDM applications.
- The disaggregated WDM market outperformed forecasts this quarter, achieving nearly 35% year-over-year growth. The market surge was fueled by strong demand across all segments. Key drivers included transponder units, optical line systems, and ZR/ZR+ optics for IPoD WDM.
- Spending by communications service providers returned to growth this quarter, increasing slightly compared to the same period last year.
- Cloud providers remained the primary driver of optical transport revenue growth this quarter. Their direct purchases of WDM systems surged by 60% year-over-year.
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