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Dell’Oro Group Reports 14 Percent Growth in Optical Transport Market for Q2 2025

August 21, 2025

Recent analysis by Dell’Oro Group reveals a 14 percent growth in the Optical Transport equipment sector during the second quarter of 2025. This expansion aligns with an increasing demand for disaggregated Wavelength Division Multiplexing (WDM) and Data Center Interconnect (DCI) solutions.

Market Recovery

Jimmy Yu, Vice President at Dell’Oro Group, noted that the reported recovery marks an end to six consecutive quarters of declining sales. The increased demand for disaggregated WDM solutions indicates a shift toward a vendor-agnostic approach, allowing network operators greater flexibility in supplier selection.

Quarterly Highlights

The findings from the 2Q 2025 report include several significant observations:

  • The growth of optical transport systems alongside ZR/ZR+ optical plugs contributed to the overall revenue increase for the market.
  • The disaggregated WDM segment experienced nearly 35 percent growth across all technology segments, such as transponders and optical line systems.
  • Communications service providers displayed a slight revenue increase from the previous year, while substantial growth from cloud providers was noted, with a 60 percent increase in WDM system purchases.
  • Major revenue contributors for the quarter included Huawei, Ciena, Nokia, ZTE, FiberHome, and Cisco.

About the Report

Dell’Oro Group’s Optical Transport Quarterly Report provides comprehensive insights, including details on manufacturer revenues, average selling prices, and overall unit shipments, covering market segments like Dense WDM (DWDM) and disaggregated WDM systems.

Conclusion

This summary presents notable findings from the latest report, highlighting trends in the optical transport market that are pertinent to IT leaders and decision-makers. This Blog Signals brief offers a concise overview of Dell’Oro Group’s original blog post.