NEC

The Optical and Routing markets show signs of recovery, and tariffs aren’t yet affecting business.

The Optical and Routing markets show signs of recovery, and tariffs aren’t yet affecting business.

Uncovering who uses which DSP, and which DSP vendors ship the most volume.

Carrier caution has resulted in underinvestment, and networks are now running “hot” enough to require upgrades and expansion.

Carrier caution has resulted in underinvestment, and networks are now running “hot” enough to require upgrades and expansion.

Optical spending by Cloud & Colo operators grew 7% worldwide, while spending by Service Providers declined -17%.

Optical sales fall -14%, but are buffered by strong sales to Cloud and Colo operators.

Optical sales fall -18% as carrier inventories take longer to deplete than anticipated.

Optical sales fall -18% as carrier inventories take longer to deplete than anticipated.

Uncovering who uses which DSP, and which DSP vendors ship the most volume.

Ex-China, revenue drops as service provider spending continues to stall.

Ex-China, revenue drops as service provider spending continues to stall.

This report provides historical information, industry context, and product examples of our classification of Compact Modular systems.

Cloud Spending on Optical Transport Jumps 46% in 4Q23, Traditional Service Provider Spending Remains Weak

The market slides ex-china as service provider spending stalls.

Datacom revenues are recovering from the Q1 drop and are poised to explode along with 800GbE shipments in 2024. Telecom revenue continues to lag, as deployed bandwidth declined YoY for the first time this quarter.

The optical market grew 4% – cloud operators continue to invest in transport and vendors are still shipping against large backlogs.

The optical market grew 4% – cloud operators continue to invest in transport and vendors are still shipping against large backlogs.

Datacom revenue and module shipments plummeted as inventory adjustment hit hard this quarter.

Optical sales slowed due to inventory absorption and macroeconomic concerns, but routing sales continued to grow.