Fresh data from Dell'Oro Group showed North America led growth in the optical transport market in Q1 2022, with revenue up 25% year-over-year to $950 million.
Latin America was the runner-up with a 19% year-to-year revenue boost, whereas Europe and Asia faced declines at a mid-single-digit rate, the report noted. Globally, the optical transport market rose 2% year-to-year, with mainly 400G and 800G wavelengths driving growth, Dell’Oro VP Jimmy Yu told Fierce.
“Due to reasons that included the war in Ukraine, Covid lockdowns, supply problems and weaker currency, optical revenue declined year-over-year in all of the other regions, including Europe, Asia Pacific, and China,” Yu said in a statement. Demand and growth in the Americas were able to offset those declines.
Ciena, Fujitsu, Infinera and Cisco made up the bulk of market share – a combined 80% portion – in the America regions. Yu told Fierce Fujitsu had the highest percentage growth – 70% year-to-year – with Cisco trailing behind at a 50% regional revenue growth in the same period.
He added while those vendors performed well year-over-year, Nokia faced global revenue decline, due to issues with supply components as well as the company’s exit from Russia following the onset of the Ukraine war.
Supply chain issues continue to persist on a global scale, and Yu pointed out vendors halting shipments to Russia impacted the European market decline. He also noted there was a “weaker” European currency year-to-year, while the U.S. dollar strengthened – which may have impacted European market revenue.
Regarding Asia, Yu remarked there’s been “some market contraction” in China, where Covid-19 lockdowns in Q1 impacted shipment delays, manufacturing, among other components. China’s optical transport revenue declined 6% year-over-year, he said.
Yu expects supply shortages will remain a problem for the rest of this year, but there may be a reprieve in early 2023. He added he has a “positive feeling” about the China transport market, as Covid lockdowns there have begun to lift. Finally, Yu said he can’t determine at this point the long-lasting effects the Russian-Ukraine war will have on sales in that region.