by 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 Overview:
Optical transport network is a technology that enables transmitting digital signals (voice and data) in optical form over long distances. It is used to create a single unified network by integrating various networking protocols and transmission formats. Optical transport networks offer higher bandwidth, improved reliability and reduced latency compared to traditional telecommunication networks. Key advantages include high-speed data transmission, long-distance signal transport without conversion to electronic form, economic feasibility for long-distance networking and scalability as per bandwidth requirements. Optical transport network is widely adopted in telecom services, internet services, government and enterprises for transmitting large volume of data without capacity limitations.
Market key trends:
One of the key trends in the optical transport network market is the growing demand for larger bandwidth capabilities. With increasing mobile data usage and proliferation of technologies like 5G, Internet of Things and cloud computing, there is rising demand for higher network bandwidth. Optical transport network provides scalability to increase bandwidth as per requirements without network redesigning. Technology advancements are enabling optical networks to support over 100 Gbps bandwidth on each fiber strand. Telecom operators and internet service providers are continuously upgrading their networks to larger bandwidth network infrastructures like 100G, 200G and beyond to handle surging data traffic. This rising requirement for high-speed transmission capabilities is expected to propel the demand for optical transport networks over the forecast period.
Porter’s Analysis
Threat of new entrants: The optical transport network market requires huge capital investments for infrastructure development. This poses a high entry barrier for new players.
Bargaining power of buyers: The presence of multiple vendors provides buyers with high bargaining power over price and product offerings.
Bargaining power of suppliers: A few component manufacturers dominate the supply market. This gives them significant bargaining power over optical transport network providers.
Threat of new substitutes: No direct substitutes exist for optical transport networks due to their critical role in carrier and enterprise networks.
Competitive rivalry: The market is highly competitive with vendors competing based on product features, pricing, services and global presence.
Key Takeaways
Global Optical Transport Network Market Size is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing demand for high bandwidth connectivity solutions.
North America currently dominates the optical transport network market owing to large-scale infrastructure development and digitization across industries in the region. Asia Pacific is expected to showcase the fastest growth over the forecast period supported by ongoing 5G deployments, expanding hyperscale data centers and fiberization of telecom networks in major Asian economies.
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. Vendors are focusing on offering transport network solutions enabled with AI, SDN, and programmability capabilities to tap new growth avenues.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
