Transport Customer Markets

North American Cloud operators were the growth engine for optical and packet transport sales, supply chains remained strained.

North American Cloud operators were the growth engine for optical and packet transport sales, supply chains remained strained.

First-quarter 2022 worldwide optical hardware spending increased 2.5% YoY, while packet gained 2%. North America led growth in both categories.

Fourth-quarter 2021 worldwide optical hardware spending increased 3.5% YoY. Declines centered in APAC for the second consecutive quarter, while all other regions grew YoY.

Cloud operator and traditional telco spending leads rebound in North America

Optical spending by North American Traditional Telco carriers declined YoY; Cloud & Colo optical spending worldwide slowed as NA spending stalled.

Optical spending by North American Traditional Telco carriers declined steeply YoY compared to a heavily frontloaded 1Q20, but show signs of longer term recovery. Cloud & Colo optical spending worldwide slowed as NA spending stalled in 2020 and APAC is just beginning to take off.

North American Traditional Telco spending on optical and packet hardware declined significantly in the 4th quarter, due to a dramatic reshuffling of capex spurred by the pandemic during the first half of 2020. Meanwhile, APAC Cloud & Colo spending exploded. Long term, hardware sales in all markets are predicted to return to growth in the second half of 2021.

North America transport hardware spending growth shifted dramatically this quarter from Cloud & Colo operators to Incumbents. APAC Cloud & Colo optical sales grew again.

Cloud & Colo optical spending in North America cooled while spending in APAC was unexpectedly strong this quarter.

North American Incumbent optical spending was up almost 50% YoY while Wholesale, Cable/MSO, and Cloud spending all declined this quarter.

Cloud & Colo optical spending growth cooled in the 4th quarter but still led growth for the year with Ciena as market share leader. North American Incumbent and Cable/MSO optical spending came back strong in the 4th quarter.

Cloud & Colo led growth in North America, up 45% this quarter. Ciena increased its market share to over 50% in 3Q19.

Incumbent spending grew in every region, Cloud & Colo spending growth slowed, and Cable & MSO sales declined.

Cignal AI has issued the 1Q19 Optical Customer Markets Report. 

Cignal AI presents the results from the 4Q18 Optical Customer Markets Report.

Cignal AI has issued the 4Q18 Optical Customer Markets Report. 

Cignal AI has issued the 3Q18 Optical Customer Markets Report. 

Cignal AI has issued the 2Q18 Optical Customer Markets Report. 

In October 2017,  Cignal AI analyzed the occurrence of a slowdown in spending by cloud & colo operators and quantified the magnitude of its impact (see Analysis: 1H17 Cloud and Colo Spending Slowdown).