4Q22 Preliminary Transport Hardware & Markets Report

Preliminary Summary and Highlights

Worldwide

The worldwide optical market declined by -4% due to continuing supply chain constraints and weakness in China, Europe, CALA and Japan. Excluding China, the optical market grew 2%.
The worldwide routing market grew 2% for its fifth straight quarter of growth and reached record quarterly and full-year revenues.
Supply chains are improving but remain strained, impacting product delivery and customers’ ability to accept and deploy new hardware.
Currency effects continue to distort dollar-denominated results.

Regional

Driven by India, RoAPAC optical spending increased 26% and routing grew 9%.
North American optical and routing sales each grew 14% to reach record 4Q and full-year levels.
EMEA’s optical and routing sales declined -7% and -4%, respectively, due to high energy prices and elevated expenses stemming from the war in Ukraine.
Optical sales in China declined -15% as the chaotic transition from zero-COVID policies disrupted markets.

Customer Markets

Optical sales to Cloud & Colo operators fell -3% compared to a drop of -4% in the overall market. Recent layoffs at the major North American hyperscalers do not appear to reflect a decline in network capex. The segment likely would have grown if it were not for Ciena’s ongoing supply chain issues.
In routing, Cloud and Colo again grew the fastest among customer segments with 7% growth. Routing sales to Cloud & Colo operators grew 13% in 2022 compared to 3% in Service Provider and 2% in Enterprise.

This report provides a preliminary summary of our Transport Hardware and Markets market share analysis for 4Q22. It is released once company results for the current quarter are complete. The final 4Q22 Hardware Report, including forecasts through 2026, will be available to all subscribers by March 24th, 2023.

Also, new for this quarter, all data from the previous Transport Customer Markets report is combined in this report.

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Release Notes

All data through 4Q22 is complete except sales data for Padtec, Huawei routing, Nokia Alcatel Submarine Networks, and Fiberhome are estimated at this time.
Unless otherwise indicated, all percentages in this report are year-over-year growth.
Ciena’s October-end quarter is reported as calendar 4Q22. Cisco’s January-end quarter is also reported as 4Q22; however, the sales data reported align with calendar 4Q22.

Vendor Summary Reports

Cignal AI’s Vendor Summary Reports focus on the most recent quarterly financial results and items of interest for select vendors. For this quarter, the following vendor reports are available:

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