Optical Transport Network Market - Growth, Trends, and Forecast (2019- 2024)

The Optical Transport Network Market is Segmented by Technology (WDM, DWDM), Offering (Service, Component) End-user Vertical (IT and Telecom, Healthcare, Government), and Geography.

Market Snapshot

summary
Study Period:

2018-2024

Base Year:

2018

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

CAGR:

15.49%

Key Players:

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Market Overview

The optical transport network market is expected to record a CAGR of 15.49% over the forecast period of 2019- 2024. With the advancements in Internet of Things (IoT) and Machine-to-Machine (M2M) communications, a substantial amount of data is expected to be generated. Hence in return, this will provide a significant growth potential for the optical transport network market.

  • The telecommunications industry and service provider networks are rapidly evolving to deal with the explosion of digital traffic driven by multimedia services, mobile applications, social media, VoIP, and cloud computing. Also, there is an ever-growing array of bandwidth-hungry applications. Therefore, the explosion of digital traffic will have a positive impact on the optical transport network market.
  • In addition to telecommunications, the growing demand for 100 Gz system deployment for fast and reliable services, and higher bandwidth demand in government organizations as well as in numerous financial companies are expected to encourage the optical transport network market.
  • However, on the flip side, the initial deployment cost is a major restraint for this market during the forecast period.

Scope of the Report

Optical Transport Network (OTN) is a protocol that plays a key role in making the network an open and programmable platform, enabling transport to become as important as computing and storage in intelligent data center networking. Today, most of the network traffic is packet-based, generated by a multitude of services and applications in unpredictable traffic patterns, with widely varying and more stringent demands on bandwidth and data transmission performance. Additionally, enterprise companies need high speeds, reliability, and high uptime for data processing and other tedious processing applications. Hence, they are constantly in search of optimal network solutions. To avoid losses, owing to system failures, companies rely on high-speed optical transport networks.
 

By Technology
WDM
DWDM
Other Technologies
By Offering
Service
Network Maintenance and Support
Network Design
Component
Optical Transport
Optical Switch
Optical Platform
By End-user Vertical
IT and Telecom
Healthcare
Government
Other End-user Verticals
Geography
North America
Europe
Asia-Pacific
Rest of the World

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Key Market Trends

IT and Telecom Industry to Drive the Optical Transport Network Market

  • The wireless infrastructure market is evolving at a higher rate and as a result, 5G is also evolving. 5G mobile network technologies offer the potential of 30 to 50 times faster speeds than 4G.  
  • Cisco forecast that the average smartphone will generate 11 GB traffic per month, by 2022, which is more than a four and a half-fold increase over the 2017 average of 2 GB per month. The increase in mobile traffic will create a huge opportunity for the optical transport network market.
  • Further, the performance improvements offered by 5G are considered a key element in the expansion of the Internet of Things.  Entirely new applications, including virtual/augmented reality and autonomous vehicle management, will require the speed and reliability promised by 5G.
  • Moreover, the emerging cloud architecture with its software-centric network paradigm also presents opportunities for telecom vendors and service providers to evolve and develop innovative products and services that can contribute to the overall growth of the global telecom industry.
  • Together these changes will put greater demand on the mobile data transport network and have a positive impact on the optical network architecture to better accommodate these requirements.
5G adopton

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Asia-Pacific to Witness the Fastest CAGR

  • Asia-Pacific is becoming a manufacturing hub for most of the companies due to the presence of cheap labor and high penetration rate of Industry 4.0 movement. In Asian countries, governments proactively support the development of new industries. For example, “Made in China 2025” is an initiative to comprehensively upgrade the Chinese industry to enable the realization of Industry 4.0.
  • According to the Economist Intelligence Unit (EIU), people’s living in Asia strongly support technology, and it has penetrated all aspects of their daily activities far more deeply than in many other parts of the world. Such penetration will drive the telecom providers to provide higher network connection speeds, which, in turn, will encourage the optical transport network market to expand.
  • Therefore, the above factors are expected to contribute to the growth of the optical transport network market in Asia-Pacific, which is expected to witness the fastest CAGR compared to other regions.
region

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Competitive Landscape

The competitive landscape of optical transport network market is fragmented because of the presence of a large number of companies. Some of the key players of this market are Fujitsu, Huawei, Cisco, ZTE Corporation, among others. The players in this industry are constantly working on developing new product portfolios. They are trying to gain competitive advantage with mergers and acquisitions, partnership, and constant innovations.

  • January 2019 - Infinera expanded its portfolio of metro packet-optical solutions with the introduction of the Infinera 7100 PSX-3S platform. This enabled cost-effective access and aggregation of diverse metro traffic types, including high-speed Ethernet and 10 gigabits per second (Gb/s) and 100 Gb/s wavelength-division multiplexing (WDM).

Major Players

  1. Cisco Systems Inc.
  2. Huawei Technologies Co. Ltd
  3. Fujitsu Ltd
  4. Infinera Corporation
  5. Ericsson

* Complete list of players covered available in the table of contents below

concentartion

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Increasing Internet Penetration with the Demand for High-speed Internet

      2. 4.3.2 Technological Innovations by the OTN Solution Providers

    4. 4.4 Market Restraints

      1. 4.4.1 High Initial Set-up Cost

    5. 4.5 Value Chain / Supply Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Technology

      1. 5.1.1 WDM

      2. 5.1.2 DWDM

      3. 5.1.3 Other Technologies

    2. 5.2 By Offering

      1. 5.2.1 Service

        1. 5.2.1.1 Network Maintenance and Support

        2. 5.2.1.2 Network Design

      2. 5.2.2 Component

        1. 5.2.2.1 Optical Transport

        2. 5.2.2.2 Optical Switch

        3. 5.2.2.3 Optical Platform

    3. 5.3 By End-user Vertical

      1. 5.3.1 IT and Telecom

      2. 5.3.2 Healthcare

      3. 5.3.3 Government

      4. 5.3.4 Other End-user Verticals

    4. 5.4 Geography

      1. 5.4.1 North America

      2. 5.4.2 Europe

      3. 5.4.3 Asia-Pacific

      4. 5.4.4 Rest of the World

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Ciena Corporation

      2. 6.1.2 CISCO Systems Incorporation

      3. 6.1.3 Huawei Technologies Co. Ltd

      4. 6.1.4 ZTE Corporation

      5. 6.1.5 Fujitsu Ltd

      6. 6.1.6 Infinera Corporation

      7. 6.1.7 Ericsson

      8. 6.1.8 NEC Corporation

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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