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Global optical transport network market: 13.2% CAGR growth forecast between 2012-16
Global Optical Transport Network (OTN) Market 2012-2016 - a new market research report on 2014-03-26 07:53:01
The Global Optical Transport Network Equipment market is to grow at a CAGR of 13.22 percent over the period 2012-2016. One of the key factors contributing to this market growth is the continued explosion in bandwidth demand. The Global Optical Transport Network Equipment market has also been witnessing the demand for integrated WDM+OTN switching. However, the high initial investment could pose a challenge to the growth of this market.

During the forecast period, there will be increasing shipment for single-chip process supporting 10G, 40G and 100G OTN solutions. OTNs play a critical role in providing the interconnect infrastructure required to efficiently and reliably deliver cloud-based services. Continued growth in mobile data traffic and the projected growth in data center-driven WAN traffic are the catalysts behind the need for all-time connectivity. To meet this demand, there is an increasing deployment of 100G ports in metros across the globe. In order to exploit the capabilities of 100G networks, service providers are actively working to develop efficient transport infrastructure to enable dynamic bandwidth allocation with granularity from 100Gbps down to 1Gbps, without interruption to network traffic.

There are several factors driving the growth of the Global OTN Equipment market, one of which is the unstoppable demand for the mobile data applications. The inexorable rise of data traffic from smart devices is steering the burgeoning market for OTN equipment. Now the service providers globally are compelled to pro-actively take a strategic and aggressive stance to optimize the capacity of their existing network infrastructures, a trend that is likely to continue throughout the period 2012-2016.

One of the major challenges is the need for high levels of initial investment. High initial investment is required for the replacement of the existing copper lines with fiber-optic cables. Copper lines are less expensive than fiber-optic cables required in optical networks. Despite the fact that the prices of optical network equipment are reducing, many countries are still evaluating the fiber-optic technology and waiting for the prices of fiber-optic cables to decline further before they invest in the technology.

The key vendors dominating this market space are Alcatel-Lucent SA, Ciena Corp., Fujitsu Ltd., Huawei Technologies Co. Ltd., and ZTE Corp.

The other vendors are ADTRAN Inc., ADVA Optical Networking SE, BTI Systems Inc., Cisco Systems Inc., Cyan Inc., ECI Telecom Ltd., Ekinops SA, Ericsson AB, JDS Uniphase Corp., NEC Corp., Nokia Solutions and Networks Oy, and Tellabs Inc.

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