Dell'Oro, a market research firm for the telecommunications, security, networking and data center industries, today released an update to its optical transport equipment market report. According to their data, the global optical transmission equipment market declined by 6% in the third quarter of 2022, and the component supply issues keep impacting the growth in the optical transmission equipment market.

Jimmy Yu, VP of Dell'Oro, pointed out that the main reason for the decline in the optical transmission equipment market in the quarter was component supply issues.Facing the surging demand for DWDM equipment, optical transmission equipment manufacturers have a lot of orders, but they cannot be shipped just due to the lack of one or two devices, . Another reason for the decline in sales is the strong dollar. Because market statistics are based on USD dollar, most sales made in Europe and Asia decrease when converted into USD dollars.

According to the report:

The overall WDM equipment market, including long-distance and metro areas, declined 5% year over year. Using current exchange rates, the market may be flat or 1% higher than a year ago.

By geographic region, North America continued to perform relatively well, while Europe showed a significant decline. The decline in European markets was caused not only by the strong dollar, but also by the war between Russia and Ukraine.