The global optical transport network market is projected to witness a CAGR of 17.77% during the forecast period to reach a total market size of US$75.937 billion by 2027, increasing from US$24.161 billion in 2020.
The Optical Transport Network (OTN) provides a network-wide framework that adds SONET/SDH-like features to Wavelength Switched Optical Network equipment (WSON). It allows the creation of a novel and advanced transparent, and hierarchical network that has been developed for use on both WDM/WSON devices and TDM devices. In simpler words, OTN is a protocol for sending network messaging over optical fibre networks.
OTN, also known as "digital wrapper technology" or "optical channel wrapper technology", is a revolution in the telecommunication industry. The technology that has gained momentum is network transportation due to the ever-increasing demand for bandwidth, and advances in optical technology. Moreover, it reduces transport costs, and brings in flexibility and convenience, robustness, and determinism. These advantages are gearing the market for OTN during the timeframe with potential to be uncovered in the years to come.
The boom in internet usage over the past decade has urged the need for a competent network service globally. In the present world, computers, tablets, smartphones, and other connected digital devices are multiplying at a significant rate. The telecom operators anticipate this increasing usage, invest in networks, and guarantee a high-performing, secure, and reliable connection. OTN technology is directly dependent on such market sentiments. As the telecom sector is being revolutionized to ensure smart and fast transmission, the OTN market is believed to grow by leaps and bounds during the forecast period.
The next big things in the form of the Internet of Things (IoT) and Industrial Internet of Things (IIoT) are reliant on a smooth network interface enabled by OTN. Several market players like Huawei, Fujitsu, and Adva have launched advanced OTN products and solutions to gain profit from this rising potential. The rollout of 5G technologies in several countries over the past three years has also benefited the OTN market tremendously. IIOT is based on efficient connections, smooth network traffic, and reliability. An advanced OTN addresses the above and is bringing in transformation in the form of Industry 4.0. Thus, the surging demand for IoT and IIoT has factored in the growth of the market.
Though the market for optical transport networks is growing widely during the forecast period, the initial deployment cost is on the dearer side. As such, the small players of the communications market refrain from adopting such products and solutions. The high initial cost may restrain the market from growing at its full potential.
The Impact of COVID-19 on the Optical Transport Network Market
The pandemic has increased the need for digital connectivity, and the demand for higher bandwidth is larger than ever. The adoption of remote work culture, distance learning, cloud technologies, and social media has only grown during the lockdowns and physical restrictions. The pressure on the telecommunication industry is greater than ever. Thus, the OTN market has expanded widely during these tough times with innovations and heavy investment in R&D.
The market leaders for the Global Optical Transport Network Market are Fujitsu Network Communications Inc, ADVA Optical Networking, Infinera Corporation, ECI TELECOM, NEC Corporation, ZTE Corporation, Huawei Technologies Co., Ltd., Padtec, Ciena Corporation, and Avencom. The major firms in the market have been introducing several growth strategies and features to develop a key competitive edge over their respective competitors. For instance,
|Market size value in 2020||US$24.161 billion|
|Market size value in 2027||US$75.937 billion|
|Growth Rate||CAGR of 17.77% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Technology, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Fujitsu Network Communications Inc, ADVA Optical Networking, Infinera Corporation, ECI TELECOM, NEC Corporation, ZTE Corporation, Huawei Technologies Co., Ltd., Padtec, Ciena Corporation, Avencom|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the optical transport network market size by 2027?
A1. The global optical transport network market is projected to reach a market size of US$75.937 billion by 2027.
Q2. What is the size of the global optical transport network market?
A2. Optical Transport Network Market was valued at US$24.161 billion in 2020.
Q3. What are the growth prospects for the optical transport network market?
A3. The optical transport network market is projected to witness a CAGR of 17.77% over the forecast period.
Q4. What factors are anticipated to drive the optical transport network market growth?
A4. As the telecom sector is being revolutionized to ensure smart and fast transmission, the OTN market is believed to grow by leaps and bounds during the forecast period.
Q5. Who are the major players in the optical transport network market?
A5. The market leaders for the global optical transport network market are Fujitsu Network Communications Inc, ADVA Optical Networking, Infinera Corporation, ECI TELECOM, among others.
Fujitsu Network Communications Inc
ADVA Optical Networking
Huawei Technologies Co., Ltd.
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