Global Optical Transport Network Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Technology (Converged Packet Optical Transport System, DWDM, WDM), And By Geography - Forecasts From 2022 To 2027

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.

Introduction

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.

Market Drivers

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.

Growth Factor

• Digital explosion

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.

• IoT and IIOT

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.

Restraints

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.

Competitive Insights

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,

• In 2019, Fujitsu Network Communications, Inc. has announced the commercial availability of its 1FINITY T600 blade, an optical transponder in its carrier-grade transport family; enabling maximum performance and capacity for data centre interconnect (DCI) and 5G transport networks.
• In 2020, ADVA announced that it had been partnering with OTN Systems to address and demonstrate key connectivity challenges for industrial applications. The companies are also collaborating to offer and introduce joint end-to-end networking solutions and services that have been built with world-class technology and specifically developed for the industrial sector.
• Ribbon Communications Inc. acquired ECI Telecom Group Ltd. through a merger, for $486 million in 2020.
• Huawei, one of the key firms, announced the launch of the novel and advanced pioneer Liquid OTN optical transport solution, AirPON optical access solution, and embedded AI (eAI) ONT optical terminal products in 2020.
• In 2019, EKINOPS announced the acquisition of an advanced OTN-Switch platform that had been built and developed by Padtec, an optical communications system producer.

Global Optical Transport Network Market Scope:

Segmentation:

• By Technology
  • Converged Packet Optical Transport System
  • DWDM
  • WDM
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Australia
    • Japan
    • South Korea
    • India
    • Thailand
    • Taiwan
    • Indonesia
    • Others

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.