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Optical Transport Network Equipment Market size to grow by USD 25.12 billion from 2021 to 2026, Driven by migration to the WDM architecture - Technavio


NEW YORK, March 28, 2023 /PRNewswire/ -- The global optical transport network equipment market size is estimated to grow by USD 25.12 billion from 2021 to 2026, according to Technavio. The market is estimated to decline at a CAGR of 16.89% during the forecast period. The migration to the WDM architecture is one of the prominent drivers impacting the optical transport network equipment market growth. OTNs started migrating to WDM architecture from the SONET and SDH technologies over the last two years. WDM systems can tap into enormous capacities by carrying multiple wavelengths over a single optical fiber. This allows 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. Fault detection, performance monitoring, and the isolation of the wavelength are some of the benefits of such systems. In the early implementation stages, many features were missing or were not implemented properly by WDM equipment vendors. Hence, the migration to the WDM architecture is expected to fuel the demand for OTN equipment during the forecast period. For more insights on the forecast market size (2021 to 2026) - Request a sample report

What's New?

Global Optical Transport Network Equipment Market - Segmentation Assessment
Segment Overview
Technavio has segmented the market based on end-user (communication service providers, enterprises, public sector, and others), technology (WDM and SONET/SDH), and geography (North America, APAC, Europe, South America, and the Middle East and Africa). 

Geography Overview
The report provides actionable insights and estimates the contribution of all regions to the growth of the global optical transport network equipment market.

Insights on the market contribution of various segments - Download a Sample Report

Optical Transport Network Equipment Market ? Vendor Analysis

The global OTN equipment market is fragmented in nature. ADTRAN Inc., ADVA Optical Networking SE, Aliathon Technology, Ciena Corp., Cisco Systems Inc., Deutsche Telekom AG, Ekinops SA, FiberHome Telecommunication Technologies Co. Ltd., Fujitsu Ltd., Huawei Technologies Co. Ltd., Infinera Corp., Juniper Networks Inc., Mitsubishi Electric Corp., NEC Corp., Padtec Holding S.A., Ribbon Communications Inc, Tejas Network Ltd., Telefonaktiebolaget LM Ericsson, Yokogawa Electric Corp., and ZTE Corp. are some of the major players in the market.

Optical Transport Network Equipment Market ? Market Dynamics

Leading trends influencing the market 

Growing applications of the IoT is one of the key trends influencing the optical transport network equipment market growth. IoT is the latest development in the field of global technology, which links all necessary home appliances to the Internet. All electronic devices can communicate with one another. Major technology companies such as Apple Inc. and Microsoft, have committed significant resources to the R&D of this technology. Hence, in the future, homes will have numerous wirelessly attached nodes and appliances that can sense the world around them and take appropriate action. OTNs with high bandwidth support are necessary for the IoT's expanding range of applications. The applications may become more user-friendly as a result of the enhancement. Hence, the growing applications of the IoT will contribute to the growth of the global OTN equipment market during the forecast period.

Major challenges hindering the market growth

The high initial investment is a major challenge impeding the optical transport network equipment market growth during the forecast period. Customers such as telecommunication providers and data center providers find a significant surge in data consumption, which increases the requirements for OTN equipment. However, the fast-growing traffic requires the adoption of newer technologies and services such as long-term evolution(LTE)/LTE-advanced (LTE-A), big data, IoT, and cloud computing. Although OTN solutions support the increase in bandwidths and low latency using WDM technologies, such solutions may be expensive for many customers. Replacing the entire network transport hardware is expensive. Therefore, customers need to identify the return on investment based on high-capital investments. Hence, the high initial investment needed to deploy OTNs is expected to hinder the growth of the global OTN equipment market during the forecast period.

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Optical Transport Network Equipment Market Scope

Report Coverage

Details

Base year

2021

Forecast period

2022-2026

Growth momentum & CAGR

Decelerate at a CAGR of 16.89%

Market growth 2022-2026

USD 25.12 billion

Market structure

Fragmented

YoY growth 2021-2022 (%)

18.52

Regional analysis

North America, APAC, Europe, South America, and Middle East and Africa

Performing market contribution

North America at 37%

Key countries

US, China, India, Germany, and UK

Competitive landscape

Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks

Key companies profiled

ADTRAN Inc., ADVA Optical Networking SE, Aliathon Technology, Ciena Corp., Cisco Systems Inc., Deutsche Telekom AG, Ekinops SA, FiberHome Telecommunication Technologies Co. Ltd., Fujitsu Ltd., Huawei Technologies Co. Ltd., Infinera Corp., Juniper Networks Inc., Mitsubishi Electric Corp., NEC Corp., Padtec Holding S.A., Ribbon Communications Inc, Tejas Network Ltd., Telefonaktiebolaget LM Ericsson, Yokogawa Electric Corp., and ZTE Corp.

Market dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period

Customization purview

If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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Table of Contents???? 

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Five Forces Analysis

5 Market Segmentation by End-user

6 Market Segmentation by Technology

7 Customer Landscape

8 Geographic Landscape

9 Drivers, Challenges, and Trends

10 Vendor Landscape

11 Vendor Analysis

12 Appendix

About Us
Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contact
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

 

 

SOURCE Technavio


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