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
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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).
The market share growth in the enterprise segment will be significant for the market growth during the forecast period. The networks used by communication service providers are designed only to support a few features. They are not able to meet the data bandwidth and traffic demand. Additionally, metro and access networks require a superior capacity to cope with the new mix of data and legacy traffic. Hence, a significant rise in Internet traffic will increase the requirements for large bandwidths.
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.
North Americais estimated to account for 37% of the global market growth during the forecast period. The US is the key market for optical transport network equipment market in the region. Market growth in this region will be faster than the growth of the market in any other region. The growing use of the Internet for online gaming, social media, video chatting, and online shopping will facilitate the optical transport network equipment market growth in North America over the forecast period.
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.
Insights on market drivers, trends, & challenges forecast period (2021 to 2026) - Request a sample report!
What are the key data covered in this Optical Transport Network Equipment Market report?
CAGR of the market during the forecast period
Detailed information on factors that will drive the growth of the optical transport network equipment market between 2022 and 2026
Precise estimation of the size of the optical transport network equipment market and its contribution to the market with a focus on the parent market
Accurate predictions about upcoming trends and changes in consumer behavior
Growth of the optical transport network equipment market across North America, APAC, Europe, South America, and Middle East and Africa
A thorough analysis of the market's competitive landscape and detailed information about vendors
Comprehensive analysis of factors that will challenge the growth of the optical transport network equipment market vendors
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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.
Exhibit 136: Mitsubishi Electric Corp. - Business segments
Exhibit 137: Mitsubishi Electric Corp. - Key news
Exhibit 138: Mitsubishi Electric Corp. - Key offerings
Exhibit 139: Mitsubishi Electric Corp. - Segment focus
11.10 Telefonaktiebolaget LM Ericsson
Exhibit 140: Telefonaktiebolaget LM Ericsson - Overview
Exhibit 141: Telefonaktiebolaget LM Ericsson - Business segments
Exhibit 142: Telefonaktiebolaget LM Ericsson - Key news
Exhibit 143: Telefonaktiebolaget LM Ericsson - Key offerings
Exhibit 144: Telefonaktiebolaget LM Ericsson - Segment focus
11.11 ZTE Corp.
Exhibit 145: ZTE Corp. - Overview
Exhibit 146: ZTE Corp. - Business segments
Exhibit 147: ZTE Corp. - Key news
Exhibit 148: ZTE Corp. - Key offerings
Exhibit 149: ZTE Corp. - Segment focus
12 Appendix
12.1 Scope of the report
12.2 Inclusions and exclusions checklist
Exhibit 150: Inclusions checklist
Exhibit 151: Exclusions checklist
12.3 Currency conversion rates for US$
Exhibit 152: Currency conversion rates for US$
12.4 Research methodology
Exhibit 153: Research methodology
Exhibit 154: Validation techniques employed for market sizing
Exhibit 155: Information sources
12.5 List of abbreviations
Exhibit 156: List of abbreviations
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.
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