Optical Transport Market Seen Growing 16% Past $18 Billion in 2026 as AI Demand Outruns Supply
Updated
Updated · delloro.com · May 19
Optical Transport Market Seen Growing 16% Past $18 Billion in 2026 as AI Demand Outruns Supply
2 articles · Updated · delloro.com · May 19
Dell’Oro lifted its 2026 Optical Transport forecast to 16% growth from 10%, putting manufacturer revenue above $18 billion for the first time since 2000.
20% year-over-year growth in 1Q 2026 drove the upgrade, with AI data-center build-outs boosting network infrastructure demand and direct data-center interconnect purchases rising about 40%.
Stretching lead times and rising order backlogs at key optical suppliers now point to supply as the main cap on further upside this year, even as demand keeps accelerating.
WDM Systems and IPoDWDM ZR/ZR+ modules posted double-digit gains; North America, Europe and MEA expanded, while Asia Pacific and Latin America declined.
Huawei, Ciena, Nokia and ZTE held more than 80% of trailing four-quarter Optical Transport Systems revenue, while Marvell and Cisco Acacia led in IPoDWDM ZR/ZR+.
With suppliers overwhelmed by AI demand, which nations will win the race to control the optical components supply chain?
AI's data needs are fueling an $18B market, but what happens to this infrastructure if the AI investment bubble bursts?
Networking is now AI's biggest bottleneck. What radical technology, beyond just faster speeds, can break the data transport gridlock?