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This report briefly summarizes our transport equipment market share analysis for 1Q23. It is released once company results for the current quarter are complete. The final 1Q23 Hardware and Markets Report, including updated forecasts through 2027, will be available to all subscribers by June 15th, 2023.

Summary and Highlights


  • The worldwide optical market grew 8% as supply chain constraints eased. Most vendors began to draw down the massive backlogs accumulated throughout 2022.
  • The worldwide routing market grew 14%; its sixth straight quarter of growth.
  • Supply chains are improving, but the tenuous macroeconomic situation is causing some network operators to postpone delivery of ordered hardware by several quarters.


  • Driven once again by India, RoAPAC optical spending increased 45% and routing grew 23%.
  • North American optical and routing sales grew 19% and 36%, respectively, as they continued their ascent to record levels.
  • EMEA’s optical sales grew 9% following a depressed 2022 in which full-year sales declined -8% due to an unfavorable exchange rate and budget constraints related to elevated energy prices.
  • Optical sales in Japan doubled quarter-over-quarter but dropped -10% YoY, the region’s sixth consecutive quarter of double-digit YoY declines.
  • In CALA, sales of routing and optical hardware grew in tandem for the first time since 2Q21.
  • Optical sales in China dropped -10%, its second consecutive quarter of YoY declines.

Customer Markets

  • Optical sales to Cloud & Colo operators leaped 23% compared to growth of 8% for Service Providers. Recent layoffs at the major North American hyperscalers plus an emphasis on investments in AI hardware do not appear to portend a decline in network capex, just a period of limited growth.
  • In routing, Cloud and Colo also grew 23%, outpacing Service Provider and Enterprise & Government sales, which grew at 13% and 11% respectively.

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Release Notes

  • All data through 1Q23 is complete with the exceptions of Huawei routing and Fiberhome, which are estimated at this time.
  • Unless otherwise indicated, all percentages in this report show year-over-year growth.
  • Ciena’s January-end quarter is reported as calendar 1Q23. Cisco’s April-end quarter is also reported as 1Q23, however, the sales data reported aligns with calendar 1Q23.

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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