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)
Publication Month: Jul 2017 | Report Code: TIPTE100000315 | No. of Pages: 189 | Category: Electronics and Semiconductor | Status: Published
The optical transport network market was valued at US$ 11.70 billion in 2016 and is projected to reach US$ 33.44 billion by 2025; it is expected to grow at a CAGR of 12.4% during 2017–2025.
The rapid increase in internet users, both at home and at work, has created a new level of bandwidth demand in the network world. Because of the rising usage of online gaming, social networking, video chatting, and many other real-time streaming activities, there has been a large uptake among residential users. One of the main reasons for the rising traction of the optical transport network market is that it provides smooth data transfer and eliminates latency difficulties. According to recent statements by service providers, corporations, and suppliers, the adoption of 100G systems is gaining steam in response to increased bandwidth demand.
Furthermore, corporate clients, particularly financial corporations and government entities, have witnessed a significant growth in bandwidth requirements. Furthermore, because to the rising pressure on present networks, companies have found it challenging to implement and operate their sophisticated systems. Latency, bandwidth limitation, robust management, transparent client signals, greater scalability, and global acceptability as a standard are all challenges that the current Synchronous Optical Network (SONET)/ Synchronous Digital Hierarchy (SDH) networks have. As a result, the adoption of optical transport network is increasing gradually across the globe.
Lucrative Regions for Optical transport network Market
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Market Insights–Optical transport network Market
Increasing Demand for Greater Bandwidth with Improved Internet Network
Ever-increasing demand for greater bandwidth is putting more load on current network and are making it more difficult for vendors to deploy and manage their advanced systems. To accommodate this increasing demand, OTNs have come into existence which has become the backbone for our next generation networks. Fiber optics are rapidly replacing copper wire and other media and is becoming the fastest and most reliable media. Two most important factors driving the internet network industry are; speed and reliability. Still there is tremendous increase in load on network now a day. Voice, video, and other multimedia has now become the major components to be carried through the network leaving data as minor component of what the network carries.
Interrupted voice and video communication has become one of the necessary for end users. Therefore, OTNs network has become backbone transport layer which can support a 100 G and the only standard that can provide the speed and reliability needed as per current scenario. Until new technology comes along, the OTN standard holds center stage, as it is the fastest and the most efficient network. The high speed that OTNs provide is substantial as well as scalable to meet current as well as future demands.
Technology Segment Insight
Based on the technology used, Optical Transport Networks can be categorized into Wavelength-division multiplexing (WDM) and Dense Wavelength-division multiplexing (DWDM). Dense Wavelength Division Multiplexing (DWDM) is a fiber-optic transmission technique. It involves the process of multiplexing many different wavelength signals onto a single fiber. So, each fiber has a set of parallel optical channels each using slightly different light wavelengths. DWDM is higher performance transmission method than WDM. DWDM can transmit data as 2.5 to 10 Gbps at 160 channels in the same time. Moreover, DWDM is developed channel spacing up to 25 to 50 GHz then it can support transmission more than 1 Tbps. Thus, the DWDM segment in optical transport network market is projected to provide numerous lucrative business opportunities for the market players in the forecast period.
Component Segment Insights
On the basis of component, the
global optical transport network market can be bifurcated into optical switch, optical transport and optical packet platform. Fiber optic components enables to manage and switch photonic signals without converting photonic signals into electronic signals, irrespective of the protocol or line speed. Whereas, traditional switches, which connects optical fiber lines are electro-optic. Optic components helps to distribute signals at different wavelengths and sends them to different ports
Service Segment Insight
Based on the service, global optical transport network market can be bifurcated into network design and network maintenance and support. Network design is more than mere act of connecting the wires of a network and adjusting a couple of settings in your server. Network designing is a process that comprises customization of network protocols and software according to the end – user’s requirements. Furthermore, the process of network designing involves exhaustive network planning. Network design planning allows the customers to ensure that their network works quickly and at a consistently high level of performance. This further enhances the resiliency, scalability and security of the networks. As the communication industry is taking a shift towards cloud consumption model, the optical networks are required to be more flexible and dynamic while providing dependable connectivity for huge bandwidth demands. This further involves the demand for managed IT services and on-demand IT support. The network maintenance and support segment for the OTN market comprises of system, installation and maintenance, server installation, network configuration, maintenance of existing OTN network, etc.
End User Segment Insight
Service provider networks and telecommunications industry must rapidly change in order to handle the explosion of digital traffic propelled by mobile applications, multimedia services, social media, cloud computing and VoIP. Additionally, there’s an ever-growing range of bandwidth-intensive applications. Service providers are constantly deploying optical transport network with an aim to enhance bandwidth and network functionality. Optical transport network has enabled network service providers to support different traffic types in a further economical way than SONET/SDH networks. However, the amount of carriers’ investment in optical transport network is proportional to the nature of their traffic loads. Optical network transports may not be a feasible option for heavy amounts of IP traffic. On the other hand, several providers are utilizing optical transport network for packet traffic to attain transparency as it can traverse the Dense Wave Division Multiplexing (DWDM) layers and maintaining Time-Division Multiplexing (TDM)-like functionality at far higher bit rates. The communication service provider in global optical transport network market is expected to grow at a CAGR of 12.3% during the forecast period.
Strategic Insights
Market initiative was observed as the most adopted strategy in global optical transport network industry. Few of the market initiative are listed below;
2017:LuxNetwork selected Ciera’s 6500 Packet-Optical Platform with integrated Wave Logic Encryption for its new 100G network.
2017:East Kentucky Network, LLC selected converged packet optical solutions from Ciena to increase network capacity, enhance service offerings and provide greater network reliability.
2017:Infinera XTS-3300 Meshponder Delivers Industry-leading 19 Terabits of Capacity on Trans-Atlantic Route.
Global Optical Transport Network Market – By Technology
- WDM
- DWDM
By Components
- Optical Switch
- Optical Transport
- Optical Packet Platform
By Service
- Network Design
- Network Maintenance and Support
By End-user Vertical
- Communication Service Providers
- Enterprises
- Government
By Geography
North America
- U.S.
- Canada
- Mexico
Europe
- France
- Germany
- Italy
- Spain
- U.K
Asia Pacific (APAC)
- Japan
- China
- India
- S. Korea
Middle East & Africa (MEA)
- Saudi Arabia
- South Africa
- UAE
South America (SAM)
- Brazil
Optical transport network Market - Company Profiles
Optical transport network Market - Company Profiles
- 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
1. Fujitsu Ltd.
2. Huawei Technologies Ltd.
3. ZTE Corporation
4. Cisco Systems, Inc.
5. Alcatel-Lucent
6. ADVA Optical Networking
7. Infinera
8. Ciena
9. Aliathan Technology
10. ADTRAN
- Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the global optical transport network market.
- Highlights key business priorities to assist companies to realign their business strategies.
- The key findings and recommendations highlight crucial progressive industry trends in the optical transport network market, thereby allowing players across the value chain to develop effective long-term strategies.
- Develop/modify business expansion plans by using substantial growth offering developed and emerging markets.
- Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it.
- Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution.
- Examine the political, economic, social and technology impact of the five regions namely: North America, Europe, Asia Pacific, Middle East & Africa and South America.
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