Industry News
Improved component supply drives optical transport market growth in Q123
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Author : JIUZHOU
Update time : 2023-06-02 10:48:50
The significant improvement in the supply chain will drive the global optical transmission equipment market to grow by 8% year-on-year in the first quarter of 2023. Excluding the Chinese market factors, the global other optical transmission equipment market grew by 12% year-on-year.
According to data from a certain group, the global optical transmission equipment market has exceeded expectations in the first quarter of 2023 due to significant improvements in the supply chain. According to the market research firm's latest Optical Transport quarterly report, worldwide optical networking hardware revenues grew 8% year-over-year in the quarter.
The group vice president commented: "For the second quarter in a row, the optical transport equipment market grew more than we expected. Equipment manufacturers are benefiting from a record backlog that has accumulated over the past two years due to insufficient supply of components. With these shortages With ease and lead times shortened, equipment suppliers were able to deliver long-awaited DWDM systems to customers. This is the first time in two years that we have not heard any supplier blaming component shortages for lower-than-expected quarterly revenue.”
The increase would have been even greater were it not for the drop in income from China. Except for the Chinese market, the optical transmission equipment market in other regions of the world increased by 12% year-on-year. Data center operators were once again a strong engine of growth, posting year-over-year growth for the second consecutive quarter.
The stronger-than-expected growth in revenue has made the group more optimistic about its outlook for 2023 than it was at the start of the year. In an email, the group president wrote that he raised his 2023 global revenue growth forecast for optical transport equipment by one percentage point to 4%. He wrote: "I definitely think 4% is the lower bound of possibility. Several factors will affect my forecast for 2023: the speed of China's economic recovery, and whether a recession or fear of a recession will slow North America's growth in the second half of the year. spending, and how quickly manufacturers can catch up to the backlog."
According to data from a certain group, the global optical transmission equipment market has exceeded expectations in the first quarter of 2023 due to significant improvements in the supply chain. According to the market research firm's latest Optical Transport quarterly report, worldwide optical networking hardware revenues grew 8% year-over-year in the quarter.
The group vice president commented: "For the second quarter in a row, the optical transport equipment market grew more than we expected. Equipment manufacturers are benefiting from a record backlog that has accumulated over the past two years due to insufficient supply of components. With these shortages With ease and lead times shortened, equipment suppliers were able to deliver long-awaited DWDM systems to customers. This is the first time in two years that we have not heard any supplier blaming component shortages for lower-than-expected quarterly revenue.”
The increase would have been even greater were it not for the drop in income from China. Except for the Chinese market, the optical transmission equipment market in other regions of the world increased by 12% year-on-year. Data center operators were once again a strong engine of growth, posting year-over-year growth for the second consecutive quarter.
The stronger-than-expected growth in revenue has made the group more optimistic about its outlook for 2023 than it was at the start of the year. In an email, the group president wrote that he raised his 2023 global revenue growth forecast for optical transport equipment by one percentage point to 4%. He wrote: "I definitely think 4% is the lower bound of possibility. Several factors will affect my forecast for 2023: the speed of China's economic recovery, and whether a recession or fear of a recession will slow North America's growth in the second half of the year. spending, and how quickly manufacturers can catch up to the backlog."
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