Optical Transport Market Set to Reach $19 Billion by 2029

The Optical Transport market is expected to grow significantly, reaching $19 billion by 2029, announced in a press release by Dell'Oro Group. This growth follows a 9% decline in 2024 due to oversupply and challenging macroeconomic conditions. The market is projected to recover with an average annual growth rate of 5% over the next five years.

A key driver of this growth is the increased spending by cloud providers on data center interconnect (DCI) technologies. DCI is anticipated to expand at twice the rate of the overall market, with a focus on ZR/ZR+ optics for IPoDWDM, optical line systems, and DWDM systems for long-distance transmission.

The report highlights that while much of the DCI market will shift towards IPoDWDM in metro applications, the DWDM Long Haul segment is expected to grow at a 15% CAGR over five years. Revenues from ZR/ZR+ optical plugs, used in routers and Ethernet switches, are forecast to grow at an annual rate of 20%, contributing significantly to the Optical Transport market.

Dell'Oro Group provides comprehensive insights into the telecommunications and data center industries, offering detailed forecasts and analysis to support strategic business decisions.