This preliminary report briefly summarizes our Transport equipment market share analysis for 2Q23. It is released once company results for the current quarter are complete. Clients interested in real-time updates as companies report should monitor release notes and download the updated Excel file.
The final report, including detailed analysis and updated forecasts through 2027, will be available to all clients by September 6, 2023. Clients can also register for the live presentation on September 19, 2023 – if you register and don’t attend, you’ll still be notified when the .ppt download is available.
Summary and Highlights
Worldwide
- The worldwide optical market fell -2% as large carriers and cloud operators absorbed inventory accumulated during the supply chain uncertainty of the past 18 months.
- The worldwide routing market grew 16% during its seventh straight quarter of growth.
- Supply chains have largely recovered, but macroeconomic concerns are causing some network operators to pause orders, delay projects, and postpone delivery of ordered hardware by several quarters.
Regional
- North American routing sales continued their rapid ascent, growing 15%. Optical revenue in the region fell -2%, the first decline in seven quarters.
- RoAPAC optical spending surged 38% following YoY growth of 14, 26 and 45% in the last three quarters respectively. Routing slowed to 2% growth following 1Q growth of 23%.
- EMEA’s optical sales were flat but routing sales leaped 27% led by Huawei and Nokia. Exchange rates have stabilized and returned to pre-2022 levels, but budget constraints related to elevated energy prices remain a concern.
- Optical sales in Japan fell -37% YoY, marking the region’s seventh consecutive quarter of double-digit YoY declines.
- Optical sales in CALA fell -1%. SLTE continues to grow in the region.
- Optical sales in China dropped -12%, its fourth consecutive quarter of YoY declines.
Customer Markets
- Optical sales to Service Providers and Cloud & Colo operators fell -2% and -3% respectively.
- In routing, all segments grew. Cloud and Colo led the way with 21% growth compared to 17% for Enterprise & Government and 15% for Service Providers.
Release Notes
- All data through 2Q23 is complete with the exception of Fiberhome, Mitsubishi, Adtran, and Smartoptics, which are estimated at this time.
- Unless otherwise indicated, all percentages in this report show year-over-year growth.
- Ciena’s April-end quarter is reported as calendar 2Q23. Cisco’s July-end quarter is also reported as 2Q23; however, the sales data reported aligns with calendar 2Q23.
- The complete 2Q23 Hardware Report, including updated forecasts through 2027, will be available to all subscribers by September 6th, 2023.
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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