Global Optical Transport Network Market Worth USD 46.12 billion by 2031 | CAGR of 9.37%

Introduction

The digital wrapper OTN, a next-generation industry standard, provides a quick and well-liked way to multiplex different services onto optical light paths. It is a group of optical network elements connected by optical fiber that can transport, multiplex, switch, regulate, and maintain the functionality of optical channels carrying client signals. As network service providers address the ongoing problem of accelerating user growth and growing digital traffic with mobile applications, social media, cloud computing, and video calling, technology solutions like OTN are being adopted.

Market Dynamics

Demand for High-Speed Internet and Increasing Internet Use Drives the Global Market

The demand for internet penetration is also influenced by the degree of urbanization. As a result, more people are using the internet, which benefits the market's growth. Additionally, the concept of smart cities drives the demand for high-speed internet. A crucial part of the infrastructure for smart cities is the Internet of Things, which connects various devices, from mobile phones to wearables, in the public, commercial, and residential sectors. Furthermore, in Dense Wavelength Division (DWDM)-based 5G optical networks for the infrastructure of smart cities, multiplexing technology with specific or fixed spectrum allocation is required. In the Middle Eastern region, market-driven high-speed internet is also a priority. Overall, the expanding digital transformations worldwide are driving the demand for internet and high-speed internet connections, which in turn depend on the optical transport network. As a result, market expansion was anticipated.

Evolving Landscape of Optical Networks Creates Tremendous Opportunities

The optical network market is changing quickly and is expected to expand significantly over the next few years. Although managing optical transport can be challenging, the pandemic has brought to us just how crucial networks are—not only for home office and remote learning but also for our entertainment. All network segments are anticipated to see significant growth in the years to come. The network's edge is connected to residential broadband, and the metro is not far behind the data center interconnect. Even though at a slower rate than the metro/edge areas, the long-haul and core areas of the network are still anticipated to expand significantly.

Regional Analysis

Asia-Pacific is the highest revenue contributor and is anticipated to expand at a CAGR of 11.02% during the forecast period. By 2021, China will have 2 billion IoT devices, and by 2025, it will have robotics and smart manufacturing plans. By 2025, the plan calls for the construction of more than 500 demonstration manufacturing facilities across the country and the digitalization of more than 70% of large Chinese businesses. It is anticipated that such a tactical move will increase regional demand for and potential growth in OTN solutions. In South-East Asian countries, the digitization of equipment and factories is gradually gaining momentum. The amount of data traffic in these countries has increased as a result. In addition, Australian network operator TPG Telecom became the first network operator in the Asia-Pacific region to deploy a functional 5G femtocell in October 2021 after installing a modular 4G/5G Smart Node solution from a leading communications technology vendor.

North America is anticipated to generate USD 13.3 billionduring the forecast period. It is the top geographic area for market share for fiber optic cable assemblies. Fiber optic cables are in high demand due to their increased bandwidth. Additionally, there is more data traffic and internet usage in the region. According to the Fibre Broadband Association, the Bipartisan Infrastructure Deal for Americans also includes a sizable USD 65 billion investment for widespread deployment in unserved and underserved areas and adoption by in-need customers. This provides a hint as to the size of the unserviced regions in the US and the increasing demand for network connectivity. To handle this growth as 5G mobile broadband services and FTTH uptake increase, the operator must implement strategic optical networking projects covering the access, metro, and backbone portions of the network to deliver its optical transport network plan.

Key Highlights

• The global optical transport network size market was valued at USD 20.6 billion in 2022. It is expected to reach USD 46.12 billion by 2031, growing at a CAGR of 9.37% during the forecast period (2023–2031).

• The global optical transport network market is bifurcated based on technology into WDM and DWDM. The WDM segment is the highest contributor to the market and is expected to grow at a CAGR of 12.16% during the forecast period.

• Based on the offering, the global optical transport network market is bifurcated into services and components. The component segment is the highest contributor to the market and is expected to grow at a CAGR of 10.78% during the forecast period.

• Based on the end-user vertical, the global optical transport network market is bifurcated into IT, telecom, healthcare, and government. The IT and telecom segment is the highest contributor to the market and is expected to grow at a CAGR of 9.78% during the forecast period.

• Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 11.02% during the forecast period.

Competitive Players

Competitive Players

The global optical transport network market’s major key players are Nokia Corporation, Ciena Corporation, Cisco Systems Inc., Huawei Technologies Co. Ltd, ZTE Corporation, Fujitsu Ltd, Infinera Corporation, Telefonaktiebolaget LM Ericsson, NEC Corporation, and Yokogawa Electric Corporation.

Recent Developments

Market News

• In November 2022, Nokia and TPG Telecom announced that they had achieved a 5G uplink speed of 2 Gigabits per second. This milestone was reached during a live demonstration at the Nokia 5G Futures Lab in Sydney, Australia, using TPG Telecom's 5G mm Wave spectrum.

• In November 2022, the 400GbE DCI service was launched by Oman Telecommunications Company (Omantel), the country's first and top integrated telecommunications services provider, using Ciena's (NYSE: CIEN) Data Center Interconnect solution. The service is made to provide a superior customer experience while meeting the rapidly increasing connectivity needs of Omantel's wholesale, cloud, and content provider customers.

Segmentation

Global Optical Transport Network Market: Segmentation

By Technology

• WDM

• DWDM

By Offering

• Service

• Component

By End-User Vertical

• IT and Telecom

• Healthcare

• Government

By Regions

• North America

• Europe

• Asia-Pacific

• Rest of the World