Dell’Oro Group has released a new report that indicates 2011 was another good year for DWDM. According to the market research firm’s latest Optical Transport report, 2011 worldwide DWDM equipment market revenues grew 19% year over year to reach $7.3 billion.

The good times should continue to roll in 2012, according to the report’s author.

“Demand for 40- and 100-Gbps transmission is driving DWDM sales to new highs,” commented Jimmy Yu, vice president of optical transport research at Dell’Oro Group. “The total DWDM market, which includes both metro and long-haul applications, will likely maintain strong growth in 2012. We believe the total DWDM market is on a path to surpass the revenue levels reached back in 2000, when the DWDM market peaked at $7.7 billion. We’re forecasting the total DWDM market to reach $8.0 billion in 2012.”

Dell’Oro’s research indicates the DWDM market grew across all the regions of the world, with North America accounting for the highest revenue. The combined market for 40-Gbps and 100-Gbps DWDM grew more than 60% and accounted for nearly one-third of all 2011 revenue.

Huawei finished the year as the market share leader, followed by Ciena and Alcatel-Lucent.