IHS analysts released the latest long-haul optical communications market report: global optical network equipment spending fell 12% in the first quarter of 2016, which only reflects the typical seasonal adjustment of the industry. However, the market achieved a 13% year-on-year growth by accelerating 100G investment in long-distance and metro applications.

Long-distance WDM spending is relatively strong, up 23% in the first quarter of 2016. The 100G long distance market will continue to be popular. IHS claims that significant new revenue projects have begun in China and North America. And some vendors have noticed 100G long-distance requirements and continue to provide equipment.

Sales of subway WDM equipment in the first quarter of 2016 were relatively good, up 15% from the same period last year. Analysts predict that the expansion of data centers, the adoption of public and private clouds, the introduction of a wider range of 4K videos, and the preparation of emerging virtual reality applications will continue to drive the growth of metro network bandwidth.

However, considering that optical communication technology seems to be weakening, IHS reports that synchronous fiber-optic networks and simultaneous digital-level consumption will continue to decline, accounting for only 11% of the total optical equipment market in the first quarter of 2016.

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