According to a newly published report by Dell’Oro Group, worldwide optical market revenues grew to over $12 billion in 2010 due to a robust market demand for DWDM systems in both metro and core applications.

“Demand for DWDM systems exceeded our expectations for the year,” said Jimmy Yu, senior director/Optical Transport Research at Dell’Oro Group, in a statement. “In particular, the growth of 40 and 100 Gbps DWDM wavelength or line card shipments was far greater than what we expected. In 2010, 40/100 Gbps wavelength shipments grew more than 160 percent. By the fourth quarter, these high-speed wavelengths contributed over 25 percent of total DWDM market revenues, and over 40 percent of long haul market revenues. We forecast this trend to continue in 2011.”

Dell’Oro’s report shows the market leaders in DWDM and 40/100 Gbps wavelengths during 2010 and the fourth quarter were Alcatel-Lucent, Ciena, and Huawei. The majority of 40 Gbps wavelengths shipped in 2010 were DQPSK line cards, followed by DPSK, and then coherent DP-QPSK.

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