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Global OTN equipment market: $13 billion industry by 2018
Optical Transport Network (OTN) Equipment: A Global Strategic Business Report - a new market research report on 2014-03-14 13:01:01
The global OTN Equipment market is projected to reach US$12.8 billion by 2018, driven by continuous rollouts of 40G and 100G networks.

The global telecommunications market is being transformed with the emergence of new technologies, growing consumer demands, and increased service offerings. Communication technologies are also evolving due to the rapid development of data-intensive multimedia and computing applications and the growing ubiquity of mobile and wireless communication networks. With these market dynamics driving technology convergence across various network functions, wireline and wireless operators are looking to deploy automated and configurable network infrastructure including optical networks.

Demand for optical network equipment is being affected by the tough economic environment in developed countries, which is slowing down investment plans of major telecom carriers. Softening conditions due to the Eurozone crisis in Europe and fiscal cliff issues in the United States is contributing to a slight slowdown in demand for optical networking equipment. However in the coming years, spending is expected to gather momentum in North America, China, and Europe, Middle East and Africa, led primarily by the rising consumer use of devices with high-bandwidth access and home broadband services, and the growing need for efficiency and reliability from networks of enterprises and datacenters.

The United States represents the largest market worldwide. Asia-Pacific is forecast to emerge as the fastest growing market with a CAGR of 17.7% over the analysis period. Growth in the region is led by the booming telecom sector specifically in India and China, increasing use of smartphones with 3G and 4G applications, and rising demand for IP-based video, voice and data. OTN Transport Equipment market is characterized by mature conditions, as against the OTN switching equipment market that is still in early developmental stages. Though similar to SONET/SDH multiplexing scheme, OTN switching holds an edge over the former in terms of its improved features and better management. Telecom carriers, particularly those with significant long-haul and regional networks, are expected to enhance investments on OTN switching equipment. Global Industry Analysts ©

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