Optical Transport Market

The global Optical Transport Network market was valued at USD 19.02 billion in 2018 and is expected to register a CAGR of 12.3% during the forecast period. At present, in the Optical Transport Network market, supply-side vendors should focus on enhancing their capabilities in the fields of- professional service, implementation service, support and maintenance services, consulting services, and managed services. The utilization of these services is growing at a considerably high rate, and the upsurge is projected to continue for the next five to six years.

Optical Transport Network is a protocol for sending network messages over optical fiber networks. It is a collection of optical network elements (ONE) that communicate using wavelength division multiplexing (WDM). The network has been built on the premise of synchronous optical networking (SONET) and synchronous digital hierarchy (SDH), which use a system of laser pulses for transmission. These types of systems have emerged to handle large sets of data over fiber-optic telecom systems, where more sophisticated protocols could handle synchronization better.

The growing implementation of the Optical Transport Network in the healthcare sector is a factor that boosts the growth of the market for Optical Transport Network. Another factor that boosts the market growth is the increasing application of wavelength division multiplexing across various industries such as IT/ telecom, healthcare, retail, and government. The rapid growth of IP & Ethernet monitoring services and the increasing awareness of next-generation Optical Transport Network are the additional factors that boost the market. However, the high investments in infrastructure building and the lack of skilled labor restrict the growth of the Optical Transport Network market.

The key vendors in the market are Huawei Technologies Co. Ltd (China), ZTE Corp (China), Cisco System Inc (US), Ciena Corporation (US), Alcatel-Lucent SA (France), Fujitsu Ltd (Japan), ADVA Optical Networking (Germany), ADTRAN (US), Infinera (US), Aliathon Technology Ltd (US), Allied Telesyn (US), Aten Technology Inc (Taiwan), Britestream Networks Inc. (US), and Advanced Micro Devices Inc (US).

Considering the present situation, it is mandatory for the vendors in the Optical Transport Network (OTN) market to enhance their portfolios and cater to the growing demand for Optical Transport Networking solutions to gain significant market shares.

Some companies in the market are investing heavily in the research & development of the optical network infrastructure. Many companies are engaged in the launch of its new optical network product portfolio while some are engaged in the enhancement of their existing products.

For instance, in February 2020, Huawei launched its first liquid optical transport solution, i.e. AirPON optical access solution, and embedded AI (eAI) ONT optical terminal. The new product offering actively focuses on connectivity, latency, and bandwidth. Furthermore, the company launched the 400G optical network solution, particularly for commercial use and it supports carriers by delivering a fast network of 400G. This solution has an excellent performance in transmission and caters to all service scenarios for carriers.

Globally, North America dominates the Optical Transport market accounting for the highest market share, owing to the increasing application of wavelength division multiplexing across various industries in the region. Asia-Pacific is anticipated to grow at a fast pace during the review period due to the rapid growth of IP & Ethernet monitoring services. Further, the rapid economic growth in major countries such as China, Japan, India, and the adoption of Optical Transport Network by SMEs and large enterprises across verticals are the key factors driving the growth of the Optical Transport Network market in the region.