Global Optical Transport Network Market Size, Share, Opportunities, And Trends By Technology (Converged Packet Optical Transport System, DWDM, WDM), By End User (Communication Service Provider (CSP), Internet Content Provider (ICP), Others), And By Geography - Forecasts From 2023 To 2028

The global optical transport network market is evaluated at US$28.193 billion for the year 2021 growing at a CAGR of 18.14% reaching the market size of US$90.538 billion by the year 2028.

Growing demand from the IT and telecom industry is expected to drive the growth of the global optical transport network industry during the forecast period. A large amount of digital traffic is generated due to the advancement in IoT, cloud computing, and machine-to-machine communications which are expected to provide a significant growth potential for the optical transport network market. Furthermore, rising demand for fast and reliable services such as high bandwidth-based applications across various financial and government sectors is projected to drive the global optical transport network market growth.

Growing adoption of cloud computing

The continuous growth of the cloud, expanding data center capacity, and the quick rollout of 5G are all contributing to the growth of network traffic and the need for network capacity and boosting the global optical transport network market. For instance, Ericsson predicts global growth in 5G subscriptions from over 12 million to over 3 billion between 2021 and 2025. The regions with the greatest expected subscription rates include Northeast Asia, Southeast Asia, India, Nepal, and Bhutan. Additionally, Tata Communications has announced its partnership with Bahrain Internet Exchange (BIX) to develop a next-generation OTN network for Bahrain. Acacia Communications Inc. is working on a new pluggable solution 100G coherent DWDM to fulfil the growing bandwidth requirements of service providers, carriers, and cable operators

Growing demand from IT and Telecom Sector

The primary driver behind OTN is the increased demand for bandwidth from residential and commercial customers. An increase in home internet use has been attributed to several factors, including the rising demand for cloud storage of personal data, online gaming, online shopping, keeping connected across long distances, social networking, video conferencing, and others. As of January 2022, there had been 2,701 data centers in the United States and 487 more in Germany, according to CloudScene, an independent database of high-speed internet, data centers, and cloud services. The United Kingdom ranked third among all countries with 456 data centers, whereas China had 443 of them. As new data centers are being built quickly, there are currently 6,334 data centers operating globally. Service providers are dealing with high-capacity demand from their commercial clients as a result of the growth of e-commerce, mobile and internet banking, online government services, industrial automation, the Internet of Things (IoT), utility networking, and other related technologies.

Product innovation and collaboration by major manufacturers

Nokia has announced that it has been selected by Swisscom to transform the company’s existing infrastructure into a fully automated and high-capacity optical transport network. Nokia is the single supplier that is working to build end-to-end wavelength division OTN across the nation, it will also support customer demand for increased bandwidth driven by the increase in remote working and online learning. Infinera has launched the 7100 PSX-3S platform for the expansion of its optical solution portfolio. ADVA announced its partnership with OTN Systems to address and show key connectivity challenges for industrial applications. Ribbon Communications Inc. has come into acquisition with ECI Telecom Group Ltd. for $486 million. EKINOPS has acquired an advanced OTN-Switch platform which is developed by optical communication system producer, padtec.

The United States is anticipated to be the fastest-growing country in the North American region

During the projection period, it is expected that factors such as the growing use of communication devices and increasing mobile data traffic are anticipated to propel global optical transport network market expansion. In July 2022, as part of the Biden-Harris Administration's commitment to investing in rural infrastructure and providing accessible high-speed internet for everyone, U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced that the Department is investing $401 million to give 31,000 rural residents and businesses in 11 states access to high-speed internet. According to the investment plan, for the construction of a fiber-to-the-premises network in Pershing County, Nevada, Uprise LLC received $27.1 million. 4,884 individuals, 130 companies, 22 farms, and 7 public schools will all have access to high-speed internet owing to this. A $10.6 million loan was given to the Midvale Telephone Company to build a fiber-to-the-home network. In Elmore, Blaine, Custer, and Boise counties in Idaho and Gila, Graham, Pinal, Cochise, and Pima counties in Arizona, it will provide high-speed internet access to 455 individuals, 39 companies, and 69 farms.

Market Key Developments

• In May 2023, the Value Added xHaul Solution Suite was introduced by NEC Corporation and its ecosystem partners A10 Networks, Adtran, Fortinet, and Juniper Networks to hasten the monetization of operators' transport networks in the 5G. Traditional IP and optical transport networking will be able to offer value with the new solution suite's improved capabilities, such as data center networks, network security, and automation to increase operators' profitability.
• In November 2022, NEC Corporation is accelerating the growth of all-optical networks with the launch of SpectralWave WX Series, a series of open specifications compliant. The lineup is built on open ROADM and Phoenix initiative specifications from the Telecom Infra Project (TIP).

Global Optical Transport Network Market Scope:

 

Report Metric	Details
Market Size Value in 2021	US$28.193 billion
Market Size Value in 2028	US$90.538 billion
Growth Rate	CAGR of 18.14% from 2021 to 2028
Base Year	2021
Forecast Period	2023 – 2028
Forecast Unit (Value)	USD Billion
Segments Covered	Technology, End User, and Geography
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered	Fujitsu Network Communications Inc, ADVA Optical Networking, Infinera Corporation, ECI TELECOM, NEC Corporation, ZTE Corporation, Huawei Technologies Co., Ltd., Padtec, Ciena Corporation, Avencom
Customization Scope	Free report customization with purchase

 

Segmentation:

• By Technology
  • Converged Packet Optical Transport System
  • DWDM
  • WDM
• By End User
  • Communication Service Provider (CSP)
  • Internet Content Provider (ICP)
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Taiwan
    • Others

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1.  INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Force Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. GLOBAL OPTICAL TRANSPORT NETWORK MARKET, BY TECHNOLOGY

5.1. Introduction

5.2. Converged Packet Optical Transport System

5.3. DWDM

5.4. WDM

6. GLOBAL OPTICAL TRANSPORT NETWORK MARKET, BY END-USER

6.1. Introduction

6.2. Communication Service Provider (CSP)

6.3. Internet Content Provider (ICP)

6.4. Others

7. GLOBAL OPTICAL TRANSPORT NETWORK MARKET, BY GEOGRAPHY

7.1. Introduction

7.2. North America

7.2.1. By Technology

7.2.2. By End-User

7.2.3. By Country

7.2.3.1. USA

7.2.3.2. Canada

7.2.3.3. Mexico

7.3. South America

7.3.1. By Technology

7.3.2. By End-User

7.3.3. By Country

7.3.3.1. Brazil

7.3.3.2. Argentina 

7.3.3.3. Others

7.4. Europe

7.4.1. By Technology

7.4.2. By End-User

7.4.3. By Country

7.4.3.1. Germany

7.4.3.2. France

7.4.3.3. United Kingdom

7.4.3.4. Italy

7.4.3.5. Spain

7.4.3.6. Others

7.5. Middle East and Africa

7.5.1. By Technology

7.5.2. By End-User

7.5.3. By Country

7.5.3.1. Saudi Arabia

7.5.3.2. UAE

7.5.3.3. Israel

7.5.3.4. Others

7.6. Asia Pacific

7.6.1. By Technology

7.6.2. By End-User

7.6.3. By Country

7.6.3.1. China

7.6.3.2. Australia

7.6.3.3. Japan

7.6.3.4. South Korea

7.6.3.5. India

7.6.3.6. Thailand

7.6.3.7. Taiwan

7.6.3.8. Indonesia

7.6.3.9. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Vendor Competitiveness Matrix

9. COMPANY PROFILES

9.1. Fujitsu Network Communications Inc

9.2. ADVA Optical Networking 

9.3. Infinera Corporation

9.4. ECI TELECOM

9.5. NEC Corporation

9.6. ZTE Corporation 

9.7. Huawei Technologies Co., Ltd. 

9.8. Padtec

9.9. Ciena Corporation

9.10. Avencom

Fujitsu Network Communications Inc

ADVA Optical Networking

Infinera Corporation

ECI TELECOM

NEC Corporation

ZTE Corporation

Huawei Technologies Co., Ltd.

Padtec

Ciena Corporation

Avencom