This preliminary report briefly summarizes our Transport equipment market share analysis for 3Q23. 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, will be available to all clients by December 15th, 2023. Clients can also register for the live presentation on December 18th, 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 grew 4%. Cloud operators continue to invest in transport, and vendors are still shipping against the large backlogs accumulated during the supply chain challenges of the past 18 months.
- The worldwide routing market fell -4% following the first half of 2023 in which it skyrocketed 16%.
- 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.
- 5G-related transport spending has peaked and is now declining in countries that were early to deploy the technology, but it continues to be a growth driver among later adopters.
Regional
- North American 3Q23 optical revenue dropped -5%, its second quarter of decline following 18 months of rapid growth. Routing revenue paused following eight straight quarters of growth, dropping -2%.
- Optical sales in RoAPAC grew 22%, the region’s fifth straight quarter of growth driven by India’s 5G buildout.
- Third-quarter optical sales in EMEA increased for the third straight quarter, growing 4%.
- Optical sales in Japan fell -20% YoY, the region’s eighth consecutive quarter of double-digit YoY declines.
- Optical sales in China shrugged off macroeconomic concerns, growing 8% in the third quarter.
- Optical spending in CALA grew 3%. Ciena grew 68%.
Customer Markets
- After a pause in 2Q, Cloud & Colo operators grew optical spending 20%; year-to-date sales are up 12%. Optical sales to Enterprise & Government customers increased 12% globally. Worldwide SP sales were flat, declining by -21% in North America.
- In routing, Cloud and Colo led the way with 11% growth compared to declines of -8% for Enterprise & Government and -7% for Service Provider.
Release Notes
- All data through 3Q23 is complete with the exceptions of Fiberhome and Infinera, which are estimated at this time.
- Unless otherwise indicated, all percentages in this report show year-over-year growth.
- Ciena’s July-end quarter is reported as calendar 3Q23. Cisco’s October-end quarter is also reported as 3Q23, however, the sales data reported aligns with calendar 3Q23.
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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