The global OTN transport and switching equipment market is expected to be driven by growing volumes of unpredictable multimedia traffic such as videos and photos. Increasing 40G and 100G service rollouts by global service providers is anticipated to contribute to market growth over the forecast period. Further, inability of Synchronous Digital Hierarchy (SDH) technology to cope with high speed 40G and 100G technologies is anticipated to drive market growth. Further, increasing bandwidth requirement may fuel market demand. Growing demand for addressing dramatic shifts in traffic types coupled with increasing requirements to reduce CAPEX/OPEX in carrier networks are projected to fuel market growth over the next few years. Further, increasing number of carriers having non-homogenous networks operating wireless, broadband, enterprise network connectivity, and internet transit networks simultaneously may utilize OTN networks over the forecast period. This may lead to increased demand for OTN transport and switching equipment.
Carriers with homogeneous networks may not find utility for OTN network. Additionally, increasing cost of deploying OTN may restrain market growth. Optical Transport Network (OTN) comprise of Optical Network Elements (ONE) interconnected using high-speed optical fiber links to provide transport, switching, multiplexing, management, supervision functionality OTN delivers a transparent framework to efficiently carry diverse network traffics. Additionally, OTN can be used with Wavelength-division multiplexing (WDM), Wavelength Switched Optical Networks (WSON) and Time-division multiplexing (TDM) devices. The G.709 OTN defines a frame format, which wraps data packets in format similar to SONET frame.
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OTN products are broadly classified into OTN Transport and OTN Switching Equipment, both of which are anticipated to contribute significantly to market growth over the next few years. OTN transport and switching equipment can be used in long-range data transfer. Further, these devices provide performance monitoring functionality. Additionally, enhanced fault detection functionality offered by OTN transport and switching equipment is anticipated to contribute to market growth.
Europe and North America are anticipated to contribute significantly to market growth over the forecast period owing to developed OTN networks. Asia Pacific countries such as India and China are projected to contribute to market growth owing to rising multimedia traffic and growing network infrastructure availability.
Key market players include ADTRAN Inc. (US), ADVA Optical Networking SE (Germany), Aliathon Technology Ltd. (UK), Alcatel-Lucent (France), Ciena Corporation (US), Cisco Systems, Inc. (US), ECI Telecom Ltd. (Israel), Fujitsu Limited (Japan), Huawei Technologies (China), JDS Uniphase Corporation (US), NEC Corporation (Japan), Ericsson (Sweden), Tellabs, Inc. (US), ZTE Corporation (China), and Infinera Corporation (US).
In April 2015, Infinera Corporation announced that Facebook Inc. deployed an Infinera Intelligent Transport Network for its terrestrial optical network. The optical network spans 3,998 kilometers and can deliver up to eight TB per second data without requiring regeneration. Verizon launched 100G technology utilizing OTN transport and switching equipment for Hong Kong, Japan, and Singapore in Jan 2015. Ciena Systems Inc. in partnership with Cisco has received order for setting 100 Gbps metro network gear in the U.S. for Verizon Communications Inc. This is further anticipated to increase OTN transport and switching Equipment demand.
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