On July 20, 2022, market research company Dell'Oro announced that the demand for optical transmission DWDM equipment is expected to exceed $17 billion by 2026. 

The $17 billion revenue from DWDM equipment accounts for the majority of the entire optical transmission equipment market. Dell'Oro predicts that by 2026, the annual growth rate of the entire optical transmission market will reach $18 billion at a compound annual growth rate (CAGR) of 3%, mainly benefiting from the growth of devices with speeds above 200G. Omdia's researchers are also optimistic about the growth of the optical network market, predicting that the total market will exceed $20 billion by 2027. 

Dell'Oro predicts that the revenue of backbone network DWDM will increase by 5% CAGR in the next 5 years, while the revenue of metropolitan area network WDM will increase by 3% CAGR during the same period. Meanwhile, analysts from another consulting firm, Omdia, predict that by 2026, the metropolitan area network WDM market will exceed $9 billion, as shown in the following chart.

In addition, Dell Oro predicts that the sales growth rate of backbone network DWDM will be faster than that of metropolitan area network WDM in the next five years. Jimmy Yu, Vice President of Dell'Oro Group, stated in a statement that although the DWDM market has experienced a considerable period of "market turbulence", it is expected that demand will not decrease. 

"In fact, growing demand faster than supply will become a new problem," Yu said. "Therefore, even if the market experiences a slight recession, the bad news is that demand will remain at the same level as supply earlier." 

Yu also pointed out that the main difference in the DWDM market in the next five years compared to previous years may be "DWDM will contribute more growth, as IP over DWDM (IPoDWDM) may reduce the use of metropolitan area network WDM in data hub interconnection."

According to Dell'Oro's data, it is expected that the annual shipment volume will increase by over 30%. They also predict that spectrum efficiency will increase at an average annual rate of 9%.

According to another report by Dell'Oro, overall, the quarterly optical transmission equipment market grew by 2% year-on-year, with this growth mainly coming from the US market. The Ukrainian war, the COVID-19 blockade, supply chain restrictions and inflation have led to the decline of the optical transmission equipment market in Europe, the Asia Pacific region and China.

Detrine Technology's industrial grade DWDM modules and tunable DWDM optical modules are at the industry's priority level.