Dell'Oro Group reports 14% growth in Optical Transport market in 2Q 2025

A report from Dell'Oro Group reveals a 14 percent year-over-year increase in the Optical Transport equipment market for the second quarter of 2025, driven by demand for disaggregated Wavelength Division Multiplexing (WDM) and Data Center Interconnect (DCI) solutions. This trend is notable for IT decision-makers as it indicates a shift toward open and vendor-agnostic networking environments.

Market Growth Factors

According to Jimmy Yu, Vice President at Dell'Oro Group, the strong recovery of the optical transport market marks a departure from previous quarters of declining sales. He highlights that the demand for disaggregated WDM solutions has been a significant driver, reflecting the needs of both cloud and communication service providers.

Revenue Insights

The report details a year-over-year revenue increase for optical transport systems, particularly driven by ZR/ZR+ optical plugs for IPoDWDM. Disaggregated WDM registered nearly a 35 percent annual growth, with increased expenditures from cloud providers contributing to a 60 percent rise in spending on WDM systems.

Key Market Players

Top vendors within the Optical Transport market for the quarter included Huawei, Ciena, Nokia, ZTE, FiberHome, and Cisco. Their involvement highlights the competitive landscape of the optical equipment segment.

This report provides relevant insights into the Optical Transport market, illustrating growth trends and vendor activities that enterprise IT leaders should consider. This Blog Signals brief reflects a timely, fact-based summary of the original blog post.