Optical Transport Network Market will be worth US$90.538 billion by 2028

optical transport network market

The global optical transport network market is expected to grow at a CAGR of 18.14% during the forecasted period, with a market valuation of US$28.193 billion in 2021 and expected to reach US$90.538 billion by 2028.

The market for the optical transport network is significantly impacted by the increase in demand from the IT and Telecom sectors.

As per the report, the market for optical transport networks is expected to witness significant growth during the forecasted period.

Optical Transport Network (OTN) is a telecommunications industry-standard protocol that provides an efficient way to transport, switch, and multiplex different services into high-capacity wavelengths across the optical networks and is commonly used by network providers that rely on OTN-enable technology for their optical networks. This range of benefits from the use of OTNs include increased resiliency, enhanced Service-Level Agreements (SLA), extended reach with Forward Error Correction (FEC), simplified operations, and the ability to efficiently maximize wavelength fill as well as end-to-end service delivery.

One of the key players in the growth of the industry is the growth of demand in the IT and telecom industries. The reason for the growth in demand is due to the increase in digital traffic due to the growing advancements of IoT, cloud computing and machine-to-machine communications. Furthermore, the increase in demand for fast and reliable services, which include high bandwidth applications across various government and financial sectors will drive the growth of the market during the forecast period.  Another factor that propels the growth is the increase in home internet consumption, which can be linked to several factors such as the increase in demand for cloud storage for personal data, online gaming and shopping, communication between long distances, social networking, and many others. As per CloudScene, an independent database of high-speed internet, data centres and cloud services, there had been 5,386 data centres in the United States and 522 more in Germany. The United Kingdom has been ranked third among all countries with their services, with 517 data centres.  As new data centres are expected to rise with the development of technologies, they have currently 8.5k data centres operational worldwide. The increase in demand will be expected to propel the growth of e-commerce, mobile and internet banking, online government services, IoT, industrial automation, utility networking, and other related technologies, which will further assist in the growth of the global optical transport network market in the forecast period.

The market growth is further propelled by the several product launches and developments taking place during the forecast period. For instance, on May 2023, NEC Corporation and their ecosystem partners A10 Networks, Adtran (formerly ADVA), Fortinet and Juniper Networks, announced the launch of the Value Added xHaul Solution Suite that helps in the acceleration of monetisation of operators’ transport networks in the 5G era. This suite enables traditional IP and optical transport networking to provide additional value with enhanced capabilities, which include network security, data centre networks, and automation for maximum operators’ profitability.

The global optical transport network market is categorised based on technology, end-user, and geography.

Based on technology, the optical transport network market is categorized into three types, which include converged packet optical transport systems, DWDM, and WDM. Packet optical transport systems are known to offer world-class transport and a foundation for transformation to a more profitable software-defined network.

Based on end-users, the optical transport network market is categorized into three types, which include communication service provider (CSP), internet content provider (ICP), and others. Communication service providers (CSPs) are known to offer telecommunication services, which include some combination of information and media services, content, application, and entertainment services, over networks, leveraging the network infrastructure as a functional and rich platform. An Internet content provider is a website or organization that manages and distributes online content, which includes videos, blogs, music, and files of any kind.

Based on the geography, the North American region is expected to witness significant growth in the optical transport network market during the forecasted period. The factor that affects the market is the government support and initiatives as well as the increase in demand for communication devices and faster network connectivity. For instance, as of July 2023, the Biden-Harris Administration announced over US$40 billion for connecting everyone in America with affordable, reliable and high-speed internet, enabling participation equally in schools, access to healthcare, and connectivity between family and friends. The awards range from US$27 million to US$3.3 billion, with a minimum of each state receiving US$107 million in the United States. Such government investments will help provide the necessary fuel for the growth of the market during the forecast period, due to the dependency of OTNs on network connectivity and the internet.

The research includes several key players from the optical transport network market, such as Fujitsu Network Communications Inc, ADVA Optical Networking, ECI TELECOM, Infinera Corporation, NEC Corporation, Huawei Technologies Co., Ltd., ZTE Corporation, Ciena Corporation, Padtec, and Avencom.

View a sample of the report or purchase the complete study at https://www.knowledge-sourcing.com/report/global-optical-transport-network-market

The analytics report categorizes the optical transport network market using the following criteria:

Segmentation:

  • By Technology
    • Converged Packet Optical Transport System
    • DWDM
    • WDM
  • By End User
    • Communication Service Provider (CSP)
    • Internet Content Provider (ICP)
    • Others
  • By Geography
    • North America
      • United States
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • Germany
      • France
      • United Kingdom
      • Spain
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • UAE
      • Israel
      • Others
    • Asia Pacific
      • China
      • Japan
      • India
      • South Korea
      • Indonesia
      • Taiwan
      • Others