Optical Transport equipment revenue jumped 15 percent year-over-year in Q2 2026, fueled by surging data center interconnect demand and North American AI infrastructure buildouts, according to Dell'Oro Group.

According to a report from Dell’Oro Group, the Optical Transport equipment market grew 15 percent year-over-year in the second quarter of 2026, driven by demand for data center interconnect (DCI). DCI revenue from IPoDWDM ZR/ZR+ and WDM Systems grew 45 percent year-over-year in the period.

Additional findings from the 2Q 2026 Optical Transport Quarterly Report 

・Cloud provider purchases of WDM Systems and IPoDWDM ZR/ZR+ optics each grew at double-digit rates year-over-year in the quarter. Cloud providers accounted for 34 percent of Optical Transport market revenue.

・ Disaggregated WDM optical line systems (OLSs) grew 80 percent year-over-year. Ciena and Nokia were cited as the leading vendors in this technology segment.

・Optical Transport revenue grew in every major region except Asia Pacific, due to a decline in China as the country shifts spending from telecom infrastructure to compute infrastructure.

・For the trailing four-quarter period covering 3Q 2025 through 2Q 2026, the top four vendors were Huawei, Ciena, Nokia, and Cisco (Acacia).

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