Rising penetration of internet globally will escalate the Optical Transport Network Market at a CAGR of 12.45%

Published Date: 19 Jul 2017

Report : Optical Transport Network (OTN) Market to 2025 - Global Analysis and Forecasts by Technology (WDM and DWDM); Component (Optical Switch, Optical Transport and Optical Packet Platform); Service (Network Design and Network Maintenance and Support) and End-use Verticals (Communication Service Provider, Enterprise and Government)

According to the new research report published by The Insight Partners, titled “Optical Transport Network Market - Global Analysis and Forecast to 2025”, the global Optical Transport Network market is expected to reach US$ 33.44 billion in 2025, registering a CAGR of 12.4% during the forecast period 2017 to 2025.

In 2016, APAC accounted for the second largest revenue share of more than one-third of the total market share, followed by North America.

Optical equipment spending in China increased dramatically. Deployment of coherent 100G ports doubled from that of the previous year. 2017 seems to bring even more rapid change, as Huawei and ZTE use new component technologies and the deployment of 100G moves to the regional level. Chinese optical equipment spending continued to surge, with a year-on-year growth of 20%, as coherent 100G deployment marched forward. Chinese equipment companies anticipate further growth through 2017, with an acceleration in metro WDM deployment next year. Also, development in infrastructure of china including optical networking projects are driving OTN market in the country. More than 120 million households in China is enjoying fiber broadband connections. 

The ravenous appetite for online data in North America is anticipated to continue its growth over the coming years. Also, the internet generated broadband traffic in this region is expected to increase at a significant rate. This increase in broadband traffic in North America is majorly contributed by the rising penetration of numerous internet based services, such as digital video broadcasting, IP data & Services, Video & Demand, Social Networking, VoIP and internet mobile access. Burgeoning demand for real time entertainment and social networking is one of the most influential factor impacting the growth of OTN in North American market. The escalating capacity demand and upsurge in the bandwidth, growing number of households using the internet and solving SONET/SDH network issues are the motivating factors driving the optical transport network market. The dip in the Y-o-Y of the OTN market in North America can be justified by the maturing market conditions in the region. North America being the pioneer in adopting and innovating newer technologies is expected to become intensely exhaustive market place for OTN service providers, due to which the region is expected to witness sturdy growth during the forecast period.

LGS Innovations is one of the leading optical networking solutions provider in South Korea. The company along with its legacy companies has been delivering services to the US Army keeping South Africa as the base. The purpose of increase bandwidth for data transfers, effective management of networks, replacements of outdated equipment, and support for secure communications for the Warfighter have been driving OTN deployments in South Korea.  Thus, the market in South Korea is expected to grow at a CAGR of 16.5%

Key findings of the study:

  • From a growth perspective India in Asia-Pacific region is anticipated to witness the most lucrative CAGR growth rate of 15.6% during the forecast period
  • Based on technology, the DWDM segment is projected to witness significant lucrative profitable opportunities with projected CAGR growth rate of 13.6%
  • Based on End user vertical, communication service providers segment is shared the largest market share in 2016 with 72.8% of the total market share.

The global market for optical transport network has been segmented on the basis of different technologies of which includes Wave Division Multiplexing (WDM) and Dense Wave Division Multiplexing (DWDM). Each optical transport network has a different application and is designed to fulfil varied end-users demand. Key end-user verticals of this market are, Communication Service Providers, Enterprise and Government. Communication Service Providers is the largest end-user vertical of Optical Transport Networks however; Enterprise segment will have highest growth rate the forecast period. Geographically the market is presently dominated by developed regions like North America and Europe, however the market is expected to be in favor of Asia Pacific, as the region is anticipated to witness tremendous development in internet network over the coming years.

Some of the major players operating in the market include; ADVA Optical Networking SE, ADTRAN, Inc., ALCATEL LUCENT, Aliathon Technologies Ciena Corp., Cisco Systems, Inc., Fujitsu Limited Huawei Technologies Co. Ltd., Infinera Corporation, ZTE Corporation


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