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Global Optical Transport Network Equipment Market 2017-2021

Global Optical Transport Network Equipment Market 2017-2021

About Optical Transport Network Equipment

OTN is a set of network elements that are connected using optical fiber links. This network provides functions, including the data transportation, switching, multiplexing, supervision, management, and monitoring of client channels carrying client signals. The network is defined by the G.709 interface of the International Telecommunication Union (ITU). This interface has made it possible to provide a network-wide framework, adding similar features such as SONET/SDH to WDM equipment. An OTN uses different technologies such as WDM and SONET/SDH and allows the passing of data packets from the source to the recipient, along minimum-hop transmission paths. These routers are connected through optical interfaces, offering bandwidth speeds up to 100 Gbit/s over distances of around 40 km. These interfaces have created a transparent, hierarchical network that can be used for both WDM devices and time-division multiplexing (TDM) devices. The carriers in the market are on the lookout to reduce the capital expenditure (CAPEX) while adjusting and addressing the changes in the traffic type and the increased traffic over the network. The OTN control plane, based on generalized multiprotocol label switching (GMPLS), automates many of the functions of the OTN.

Technavio’s analysts forecast the global optical transport network equipment market to grow at a CAGR of 21.68% during the period 2017-2021.

Covered in this report

The report covers the present scenario and the growth prospects of the global optical transport network equipment market for 2017-2021. To calculate the market size, the report considers the retail selling price is considered as the average selling price of the product.

The market is divided into the following segments based on geography:

  • Americas
  • APAC
  • EMEA
Technavio's report, Global Optical Transport Network Equipment Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors
  • Ciena
  • Cisco Systems
  • Coriant
  • FUJITSU
  • Huawei Technologies
  • Infinera
  • Nokia (Alcatel-Lucent)
  • ZTE
Other prominent vendors
  • ADTRAN
  • ADVA Optical Networking
  • BTI Systems (Juniper Networks)
  • ECI TELECOM
  • Ericsson
  • NEC Technologies
Market driver
  • Migration to the WDM architecture
  • For a full, detailed list, view our report
Market challenge
  • High initial investment
  • For a full, detailed list, view our report
Market trend
  • Increasing applications of the IoT
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2021 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?


Press Release

Technavio Announces the Publication of its Research Report – Global Optical Transport Network Equipment Market 2017-2021

Technavio recognizes the following companies as the key players in the global optical transport network equipment market: Ciena, Cisco Systems, Coriant, FUJITSU, Huawei Technologies, Infinera, Nokia (Alcatel-Lucent), and ZTE.

Other Prominent Vendors in the market are: ADTRAN, ADVA Optical Networking, BTI Systems (Juniper Networks), ECI TELECOM, Ericsson, and NEC Technologies.

Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Increasing applications of the IoT. The IoT is the latest trend in the global technology arena. It is connecting all essential home devices to the Internet. It basically means that all the electronic gadgets can be interconnected and, hopefully, in the near future, will be able to interact among themselves. All the major gadget makers, such as SAMSUNG, Dell, Apple, and Microsoft, have dedicated considerable resources for the R&D of the IoT. Due to this, the future households will have a lot of connected nodes and appliances that are interconnected wirelessly so that they can together sense the surrounding environment and act accordingly. The increasing applications of the IoT will require OTNs that have the capacity and capability to support high bandwidths. Devices will be able to communicate with each other and bring further optimization to the experience of the users. This optimization can make the applications more convenient to the end-user.”

According to the report, one of the major drivers for this market is Migration to the WDM architecture. OTNs have started migrating to WDM architecture from the SONET and SDH technologies over the last couple of years. The deployment of WDM systems by carriers is benefiting them largely as such systems are able to tap into enormous capacities by carrying multiple wavelengths over a single optical fiber. This has allowed carriers to make significant cost reductions over the cost of deploying single-channel networks or the cost of overlaying multiple networks for each service offering. The benefits of such systems include fault detection, performance monitoring, and the isolation of the wavelength. In the early stages of implementation, many of these features were missing or were not implemented properly by the WDM equipment vendors. Once these issues are resolved by the vendors, the actual benefits of such systems will be realized. Thus, the migration to the WDM architecture is expected to fuel the demand for OTN equipment during the forecast period.

Further, the report states that one of the major factors hindering the growth of this market is High initial investment. Customers such as telecommunication providers and data center providers are finding a significant surge in the data consumption, which increases the requirements for OTN equipment. However, the fast-growing traffic requires the adoption of newer technologies and services such as LTE/long-term evolution-advanced (LTE-A), big data, IoT, and cloud computing. Although OTN solutions support the increase in bandwidths and low latency using the WDM technologies, such solutions are expensive for many customers. Customers need to spend a lot of money in replacing the entire network transport hardware. Hence, such customers need to identify the return on investment based on the high capital investments.

Companies Mentioned

Ciena, Cisco Systems, Coriant, FUJITSU, Huawei Technologies, Infinera, Nokia (Alcatel-Lucent), ZTE, ADTRAN, ADVA Optical Networking, BTI Systems (Juniper Networks), ECI TELECOM, Ericsson, and NEC Technologies.

  • Executive summary
  • Scope of the report
  • Research methodology
  • Introduction
    • Market outline
    • PEST analysis
      • Table PEST analysis of the global OTN equipment market
  • Market Landscape
    • Market ecosystem
      • Table Parent market
      • Table Related market
      • Table Global fiber optic communications market
    • Market characteristics
      • Table Market characteristics
    • Market segmentation analysis
      • Table Market segments
  • Market sizing
    • Market definition
      • Table Market definition - inclusions and exclusions checklist
    • Market sizing 2016
      • Table Market size 2016
      • Table Validation techniques employed for market sizing 2016
    • Market size and forecast 2016-2021
      • Table Global OTN equipment market – Market size and forecast 2016-2021 ($ bn)
      • Table Global OTN equipment market – Year-over-year growth 2017-2021 (%)
  • Five forces analysis
    • Table Five forces analysis 2016
    • Bargaining power of buyers
      • Table Bargaining power of buyers
    • Bargaining power of suppliers
      • Table Bargaining power of suppliers
    • Threat of new entrants
      • Table Threat of new entrants
    • Threat of substitutes
      • Table Threat of substitutes
    • Threat of rivalry
      • Table Threat of rivalry
    • Market Condition
      • Table Market condition - Five forces analysis 2016
  • Technology overview
    • Technological landscape
      • Table Throughput of various OTN signals
  • Market segmentation by technology
    • Segmentation by technology
      • Table Global OTN equipment market by technology – Market share 2016-2021 (%)
    • Comparison by technology
      • Table Comparison by technology
    • WDM – Market size and forecast 2016-2021
      • Table WDM – Market size and forecast 2016-2021 ($ bn)
      • Table WDM – Year-over-year growth 2017-2021 (%)
    • SONET/SDH – Market size and forecast 2016-2021
      • Table SONET/SDH – Market size and forecast 2016-2021 ($ bn)
      • Table SONET/SDH – Year-over-year growth 2017-2021 (%)
    • Market opportunity by technology
      • Table Market opportunity by technology
  • Market segmentation by end-user
    • Segmentation by end-user
      • Table Global OTN equipment market by end-user – Market share 2016-2021 (%)
    • Comparison by end-user
      • Table Comparison by end-user
    • Communication service providers – Market size and forecast 2016-2021
      • Table Communication service providers – Market size and forecast 2016-2021 ($ bn)
      • Table Communication service providers – Year-over-year growth 2017-2021 (%)
    • Public sector – Market size and forecast 2016-2021
      • Table Public sector – Market size and forecast 2016-2021 ($ bn)
      • Table Public sector – Year-over-year growth 2017-2021 (%)
    • Enterprises – Market size and forecast 2016-2021
      • Table Enterprises – Market size and forecast 2016-2021 ($ bn)
      • Table Enterprises – Year-over-year growth 2017-2021 (%)
    • Others – Market size and forecast 2016-2021
      • Table Others – Market size and forecast 2016-2021 ($ bn)
      • Table Others – Year-over-year growth 2017-2021 (%)
    • Market opportunity by end-user
      • Table Market opportunity by end-user
  • Regional landscape
    • Geographical segmentation
      • Table Global OTN equipment market – Market share by geography 2016-2021 (%)
    • Regional comparison
      • Table Regional comparison
    • Americas – Market size and forecast 2016-2021
      • Table Americas – Market size and forecast 2016-2021 ($ bn)
      • Table Americas – Year-over-year growth 2017-2021 (%)
      • Table Top 3 countries in the Americas
    • EMEA – Market size and forecast 2016-2021
      • Table EMEA – Market size and forecast 2016-2021 ($ bn)
      • Table EMEA – Year-over-year growth 2017-2021 (%)
      • Table Top 3 countries in EMEA
    • APAC – Market size and forecast 2016-2021
      • Table APAC – Market size and forecast 2016-2021 ($ bn)
      • Table APAC – Year-over-year growth 2017-2021 (%)
      • Table Top 3 countries in APAC
    • Market opportunity
  • Decision framework
  • Drivers and challenges
    • Market drivers
      • Table Global smartphone market 2016-2021 (billions of units)
    • Market challenges
  • Market trends
    • Increasing applications of the IoT
    • FTTH
    • Development of smart cities
      • Table Partner cities selected under the European Union-China PDSF initiative
  • Vendor landscape
    • Competitive scenario
      • Table Principle parameters of competition
      • Table Top vendors in the global OTN equipment market: Ranking
    • Other prominent vendors
      • Table Other prominent vendors
  • Vendor analysis
    • Ciena
    • Cisco Systems
    • Coriant
    • FUJITSU
    • Huawei Technologies
    • Infinera
    • Nokia (Alcatel-Lucent)
    • ZTE
  • Appendix
    • List of abbreviations
  • Explore Technavio

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