Optical transport networks allow transmission of data, voice, and video traffic through optical fibers. These networks offer high bandwidth, high flexibility in terms of capacity scaling, long transmission reach, enhanced network resilience, and high network reliability while having low power consumption. Optical transport networks also allow convergence of various networks and services like IP/MPLS, Ethernet, SONET/SDH and OTN, thereby providing a scalable, flexible and unified network infrastructure. The global optical transport network market involves equipment ranging from wavelength-division multiplexing systems to optical switches, optical packet platforms, and others. The market has gained importance in today’s digital era due to increasing mobile data traffic and high demand for bandwidth driven by the growth in data centers and the emergence of 5G networks.
The global Optical Transport Network Market is estimated to be valued at US$ 22.32 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the optical transport network market is the increasing adoption of software-defined networking and network function virtualization technologies. These technologies allow abstraction of the hardware layer from the control layer thereby enabling flexible and agile optical networks. SDN and NFV improve cost efficiency, scalability and adaptability of optical networks. Another important trend is the surge in investments for developing 5G networks. As 5G requires vastly increased network capacity and low latency networks, it has accelerated the deployment of flexible DWDM network infrastructure. Increased development of rural and metro networks to provide high-speed broadband connections is also fueling market growth. Emergence of artificial intelligence and machine learning is also influencing optical networks with capabilities like automated network operations, predictive maintenance and cognitive fault management.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the optical transport network market requires significant capital investments and presence of established global players with strong brand value makes it difficult for new players to establish themselves.
Bargaining power of buyers: The bargaining power of buyers is moderate to high as buyers have options to select from various established global players operating in the market.
Bargaining power of suppliers: The bargaining power of suppliers is low to moderate as there are many component suppliers for optical transport network equipment and services.
Threat of new substitutes: The threat of substitutes is low as there are limited substitutes available for optical transport network technology in core networking applications.
Competitive rivalry: The competitive rivalry is high among the key global players operating in the market.
Key Takeaways
The global Optical Transport Network Market Analysis is expected to witness high growth. Regional analysis related content comprises The Asia Pacific region is expected to dominate the optical transport network market during the forecast period owing to increasing investments Networking infrastructure development projects across telecom and cloud service providers.
Key players related content comprises Key players operating in the Optical Transport Network market are Nokia Corporation, Ciena Corporation, Cisco Systems Inc., Huawei Technologies Co. Ltd, ZTE Corporation, Fujitsu Corporation, Infinera Corporation, Telefonaktiebolaget LM Ericsson, NEC Corporation and Yokogawa Electric Corporation. Nokia Corporation and Cisco Systems Inc. are market leaders with a large market share owing to their established global presence and strong product portfolio focused on network virtualization. Huawei Technologies Co. Ltd has also strengthened its offerings and brand recognition in optical transport networking equipment over the past few years.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it