According to the latest report from market research firm Dell’Oro Group, the optical transmission equipment market ended strongly with a month on month growth of approximately 45% in the fourth quarter of 2024. However, due to customers digesting excess inventory and the overall sluggish macroeconomic environment, the market size for the whole year of 2024 decreased by 13% year-on-year.
The dawn of the industry has emerged, “said Jimmy Yu, Vice President of Dell’Oro Group.” The optical transmission equipment market has entered a downward cycle since the end of 2023 and is expected to emerge from the trough in early 2025. The strong growth in the fourth quarter of 2024 fully indicates that the supply and demand relationship of optical transmission equipment is close to equilibrium, and the problem of excess inventory has been basically resolved
Other core highlights of the Q4 2024 Optical Transmission Equipment Market Report include:
The quarter on quarter growth rate in the fourth quarter of 2024 reached a historic high. Except for the significant seasonal growth in the Chinese market, almost all regions have achieved growth, with the North American market growing for three consecutive quarters and the overall region outside of China growing by 35% month on month.
Starting from the fourth quarter of 2023, customer inventory correction has been completed. The feedback from equipment suppliers shows that the order volume continues to rise, and the optical transmission business in North America, which previously had the most severe inventory backlog, has significantly improved.
The top five manufacturers in 2024 are Huawei Ciena、 Nokia, ZTE, and Infinera. Huawei has the highest market share at 33%, followed by Ciena at 19%. Nokia’s acquisition of Infinera is not yet complete, but if the two merge, the joint market share will also reach 19%.
The market share of the three suppliers has increased in 2024. Huawei increased by three percentage points, ZTE and Cisco each increased by one percentage point, and the market share of the three suppliers in major global regions generally increased.
