The global optical transport network market size was valued at USD 18.38 billion in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 10.2 % from 2022 to 2030. The market is to propel the market as increasing internet penetration with the demand for high-speed internet and technological innovations by otn solution providers. Low tolerance to chromatic dispersion might give an edge to other technologies like ethernet is anticipated to hinder the market growth. Based on the segment the market is divided by technology, by offering, by geography and end-user vertical.
Global Optical Transport Network Market: Regional Insights
Based on geography, the global optical transport network market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East &Africa. North America is one of the leading regions in market share in fiber optic cable assemblies. It offers much greater bandwidth; thus, there is a high demand for fiber optic cables in the region. Furthermore, the region has vast internet penetration and huge internet data traffic.
Europe has been off to a slow initiation in terms of telecommunication development, network increase, and acquirement. As per the European 5G Observatory, 27 EU countries now have commercial 5G services, with the latest venture being rolled out in Portugal by NOS in December 2021. Further, as per Ericsson Mobility Visualizer published in February 2022, the number of 5G subscriptions in Western Europe roused from 6.49 million in 2020 to 30.56 million in 2021. Furthermore, the figure is anticipated to cross 68.6 million by 2022.
Figure 1. Global Optical Transport Network Market Share (%), By Region, 2021
Global Optical Transport Network Market Drivers:
The necessity for telecommunication industries to increase quickly is fueled by the explosion of digital traffic, such as expanded utilization of mobile applications, multimedia services, social media, and cloud migrations, amidst others. Hence, to address such needs, OTN is based on huge-speed internet.
Internet penetration has scaled up in the modern world. According to International Telecommunication Union, approximately 4.9 billion or close to 63% of the world’s population was dependent on the internet during 2021.
Global Optical Transport Network Market Opportunities:
The optical network landscape is quickly altering and is anticipated to spectator notable development in future too. Though managing optical transport can be a daunting task, the pandemic has made people realize how important network is not for the entertainment however remote learning and work-from-home.
All the network segments are anticipated to spectator notable development in the coming years. The edge of the network linked to residential broadband and metro are leading the way, with data- center interconnect not far behind. While growing less than the metro/edge, respondents still predict regarded development in the long-haul and core parts of the network.
Global Optical Transport Network Market Trends:
High anticipated traffic growth offers a robust motivation for service offerors to reassess their network architectures and hold open optical networking to fulfil these capacity needs inexpensively. The market has seen a steady acquirement of 400G pluggable and 800G embedded optical engine technology. . Infinera’s 2x800G ICE6 optical engine has seen a steady stream of new wins and deployments over the globe, comprising most recently with stc in the Middle East, Telstra in Asia-Pacific, and Sparkle in Europe.
Leading OEMs have started to develop smaller-scale compact modular systems that can address any operator's requirements, no matter their size. With compact modular systems, operators can choose each “building block” for the right situation. Today’s technology OEMs like Cisco can utilize 100/200/400G digital coherent optics (DCO) or 400G QSFP-DD ZR/ZR+ optics and stick them directly into routers. With ROADM, the signals would optically be passed through nodes. However, with routers, it would electronically be switched.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2021 | Market Size in 2021: | US$ 18.38 Bn |
| Historical Data for: | 2017 to 2020 | Forecast Period: | 2022 to 2030 |
| Forecast Period 2022 to 2030 CAGR: | 10.2% | 2030 Value Projection: | US$ 44.95 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Nokia Corporation, Ciena Corporation, Cisco Systems Inc., Huawei Technologies Co. Ltd, ZTE Corporation, Fujitsu Corporation, Infinera Corporation, Telefonaktiebolaget LM Ericsson, NEC Corporation and Yokogawa Electric Corporation |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Global Optical Transport Network Market Restraints:
The tolerance to chromatic dispersion is an essential reason as it’s a phenomenon by which various optical pulses are spread owing to the various wavelengths altered at various speeds. Low tolerance to it raised the necessity for a substitiute technology such as Ethernet which is anticipated to hinder the growth of the market.
One of the main differences between Ethernet and OTN is the performance of multiplexing. In the case of Ethernet, statistical multiplexing is utilized to permit effective multiplexing of variable bitrate channels with the help of statistically distributed packet arrival patterns. Anyhow, OTN applies the static multiplexing of lower bitrate channels into huge bitrate channels.
Figure 2. Global Optical Transport Network Market Share (%), By End-User Vertical, 2021
Global Optical Transport Network Market Segmentation:
The global optical transport network market report is segmented by technology, by offering, by end-user vertical and by geography.
Based on technology the segment is divided into, WDM, DWDM and Other Technologies. Out of which WDM (Wavelength-division multiplexing) rises bandwidth by permitting various data streams at several frequencies to be sent over a single optical fiber network. Signals at WDM wavelengths are free of each other.
DWDM With the massive development of over-the-top applications, cloud computing, mobile devices, and the requirement for end-users and employees to have continuous accessibility to their data and applications, optical networking solutions are quickly being acquired by businesses over multiple industries as their bandwidth and distance necessities continue to develop.
Based on offering the market segmented into services, component and optical platform. In network maintenance and assistance, the rising digital transformation from data and networking technologies, such as IoT, blockchain, cognitive, and advanced analytics, intensifies the acquirement of connectivity developments in several organizations. The growth of the Internet of Things (IoT) and evolving automation trends have exclusively heightened data traffic, making augmented bandwidth need for vast organizations and small and medium-sized enterprises (SMEs), knowing the necessity for OTN.
Optical Transport Network or OTN is an industry-standard protocol that offers a globally recognized method to multiplex various facilities onto optical light paths. OTN wraps payload clearly into a container for transport over optical networks, stabilizing the native structure, timing, and management data.
Based on end-user vertical the segment is divided into IT& Telecom, Government and healthcare. Out of which in the IT& TELECOM sector Cable operators are compelled to face an array of architectural and technology crossroads around the next few years, comprising the way they will transition to a Distributed Access Architecture (DAA), and the many options shown by the future evolution of their HFC networks.
Healthcare as the digital transformation (DX) of society and industry boost against the backdrop of the COVID-19 crisis, many predicted a drastic shift toward a more decentralized society built over the premise of securing public health as part of a post-pandemic "New Normal."
Global Optical Transport Network Market: Key Developments
In February 2021, In partnership with Vodafone, the Nokia Company declared that it had transmitted data through an optical fiber on a single wavelength at 100 Gbps. Nokia also declared that the Bell Labs 100G PON prototype is the world’s first flexible rate transmission application in a PON network.
In April 2021, Nokia declared that it had increased its portfolio of mobile transport items with a new range of indoor and outdoor solutions for communications service suppliers and enterprises. Nokia’s increased Wavence portfolio offerors a whole microwave solution for all utilizations cases.
In March 2021, Zayo Group Holdings Inc. declared the deployment of Ciena’s WaveLogicT 5 Extreme (WL5e) technology betwixt Dublin, Ireland, and Amsterdam, Netherlands, offering growing optical network capacity and reach betwixt these key markets.
In June 2021 – Marcatel, a telecommunications carrier based in Mexico, is leveraging Ciena’s coherent optical technology to assist a new network linking Querétaro, Mexico, to McAllen, Texas. Marcatel installed Ciena’s flexible 6500 photonic line system and Waveserver 5 powered by WaveLogic 5 Extreme for multi- terabit capacity over a long-haul coherent optical network of around 1000km to offer huge fiber capacity without renewal.
Global Optical Transport Network Market: Key Companies Insights
The global optical transport network market is highly competitive. This is attributed to incessant launch of new machineries owing to ongoing Research & Development and efforts by value chain participants. Furthermore, key players are acquiring several business development plans in order to increase their presence on regional and the global basis. Few key players in the global optical transport network market are:
Nokia Corporation, Ciena Corporation, Cisco Systems Inc., Huawei Technologies Co. Ltd, ZTE Corporation, Fujitsu Corporation, Infinera Corporation, Telefonaktiebolaget LM Ericsson, NEC Corporation and Yokogawa Electric Corporation
*Definition: An optical transport network (OTN) is a digital wrapper that summarizes frames of data, to permit multiple data sources to be sent on the similar channel. This makes an optical virtual private network for individual client signal. ITU-T stated an optical transport network as a set of optical network elements linked by optical fiber links, capable to offer functionality of conveyance, multiplexing, switching, management, supervision and survivability of optical channels carrying client signals.
All in all, OTN technology shows both a technical leap forward in optical networking over SONET/SDH and a business chances for carriers and service suppliers alike. OTN networks can fully leverage the transport infrastructure in the era of data/transport convergence by providing carriers unprecedented architectural flexibility, client-protocol independence, and service differentiation. OTN network has come of age and will positively continue to rise as traffic necessity grows.
Market Dynamics:
The degree of urbanization is also fueling the need for internet penetrations. For instance, as per Population Reference Bureau, the share of urbanization in North America held for 82% in 2021, after 79% from Latin America and the Caribbean, 75% from Europe, 52% in Asia, and 25% in Oceania. Technological developments is a main trend gaining popularity in the optical transport network market. Major companies operating in the optical transport network market are aiming on offering technologically-developed solutions to fulfil end-customer needs and reinforce their market position which is projected to propel the growth of the global optical transport network market.
On Contrary, Ethernet is now being considered a valuable choice for mobile transport, accessibility, and metro networks as OTN are only serving the purpose of huge bitrate long-haul transport. Moreover, as Ethernet today also comprises FEC, it may replace OTN in the future for long-haul if IEEE chooses to state long-haul Ethernet interfaces.
Key features of the study:
Detailed Segmentation:
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