by The Optical Transport Network (OTN) provides high-speed transmission and switching capabilities that help telecom service providers efficiently manage their transport networks. OTN equipment such as optical switches, WDM systems, and controllers are used for the transmission of voice, data and video between telecom networks and data centers. With increasing data usage driven by the growth in internet traffic, streaming services, and internet of things, telecom operators are upgrading their infrastructure to support higher bandwidth. OTN helps overcome the limitations of traditional SONET/SDH networks and provides higher scalability and flexibility required for 5G rollout and fiber-to-the-home initiatives. The global Optical Transport Network Market is estimated to be valued at US$ 11.5 billion in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key Trends:
Some of the major trends in the optical transport network market include increasing adoption of DWDM technology and software-defined networking. Dense Wavelength Division Multiplexing (DWDM) technology can transmit multiple optical carrier signals independently over the same optical fiber using different wavelengths. DWDM significantly boosts the capacity of existing fiber infrastructure. Growing use of DWDM systems along with the emergence of ultra-dense variants like C+L band DWDM are allowing networks to scale to terabit capacities and support 5G backhaul requirements. Software-defined networking (SDN) enables programmability of OTN networks through central software control. SDN offers advantages like network virtualization, on-demand resource provisioning, and automation of network operations. SDN is helping improve OTN agility, simplicity and cost optimization and accelerate time-to-market for new services.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate. Large capital requirements and technological expertise act as a barrier.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of several vendors offering competitive prices.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of substitute components from different manufacturers.
Threat of new substitutes: The threat of new substitutes is low as optical transport network solutions offer better performance over traditional transmission solutions.
Competitive rivalry: Competition is high among key players to gain market share.
Key Takeaways
The global Optical Transport Network Market Growth is expected to witness high growth. Optical networks enable high-bandwidth connectivity and help telcos migrate from legacy networks to all-IP infrastructures.
Regional analysis:
North America dominated the market with over 35% share in 2022. This is attributed to factors such as heavy investments in network infrastructure by carriers in the US and Canada. The Asia Pacific region is poised to grow at the highest CAGR during the forecast period. This is owing to the rising demand for high-speed Internet across China, India, and other developing Asian countries.
Key players:
Key players operating in the Optical Transport Network market are Huawei Technologies Co. Ltd., Ciena Corporation, Cisco Systems Inc., Fujitsu Ltd., Nokia Corporation, ZTE Corporation, Infinera Corporation, ADTRAN Inc., ADVA Optical Networking. Huawei and Ciena together account for over 30% of the global market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
