According to a recent report released by Dell’Oro, the annual growth rate of optical fiber equipment in North America and Latin America reached double digits in the first quarter, which led to the growth of orders for Taiwan Netcom and optical communication factories.
The North American infrastructure project is driving local fiber optic equipment sales, and the United States is expected to spend $65 billion to build local broadband networks. Dell’Oro said the North American market grew 25 percent year-on-year in the first quarter, while Latin America was the second-largest growth market, with fiber optic equipment sales rising 19 percent year-on-year in the first quarter.
The text recently stated that orders for optical fiber equipment in North America are pouring in and demand is strong. It is estimated that shipments this year will reach 5 million sets, an annual increase of 60%, and shipments will continue to grow in the second half of the year.
Optical communication factory Bo Ruowei pointed out that in addition to the demand for infrastructure projects, at the same time, in order to strengthen competition with telecom operators, cable television (CATV) operators are actively providing broadband services, thereby increasing the demand for broadband infrastructure. It is expected that WDM (optical wavelength division and combination products), Branch (Light energy splitting and combining products) Optical modules will be able to enjoy the North American infrastructure bonus this year.
Dell’Oro pointed out that the North American and Latin markets have strong demand. Although there is still a shortage of materials, suppliers can still ship. Ciena, Fujitsu, Infinera and Cisco are the main suppliers in the overall American market, with a combined market share of 80%. .
However, Dell’Oro said that sales in Europe, Asia, and China were poor, mainly due to the Russian-Ukrainian war, the epidemic, lack of materials, and inflation. The decline in these markets in the first quarter was regarding mid-single digits, offsetting North America. , The Latin market grew strongly.
Dell’Oro said that the market size of optical fiber transmission equipment last year was regarding 15 billion US dollars, benefiting from the continuous growth of sales of high-density demultiplexer (DWDM) above 200G, and it is expected that by 2026, the optical fiber equipment market will grow at a compound annual growth rate (CAGR). ) 3% to $18 billion.
