For more insights on the market share of various regions - Request a Sample Report
Optical Transport Network Equipment Market: Growing mobile data traffic to drive growth
The key factor driving growth in the optical transport network equipment market is the growing mobile data traffic. The global smartphone market has been seeing massive growth since 2010. Internet-based smartphone applications that are used by end consumers transfer data via a massive network of optical fibers. Optical fiber infrastructure connects to cell towers where RF photons accumulated from several billion mobile devices such as smartphones and tablets are converted to infrared photons to ensure efficient and effective fiber-optic backhaul transferred to all-fiber metropolitan, long-haul, regional, and submarine networks, which connect cities, countries, and continents. Therefore, with the growing adoption of smartphones and tablets, the demand for OTN's and the associated hardware will accelerate during the forecast period, as cellular networks will see growth in mobile data, which will require efficient fiber-optic network infrastructure.
Optical Transport Network Equipment Market: High initial investment impedes market
The high initial investment will be a major challenge for the optical transport network equipment market during the forecast period. Customers such as telecommunication providers and data center providers are finding 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 LTE/long-term evolution-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 are expensive for many customers. Customers need to spend a lot of money on replacing the entire network transport hardware. Since there is a high capital investment, the payback period for the investment is long. Besides the fact that the deployment of these projects takes years, especially in the telecom sector, customers give the projects to vendors at a very competitive price. Thus, the high initial investment needed to deploy OTNs is expected to hinder the growth of the global OTN equipment market.
To know about other drivers & challenges - Request a Sample Research Report
Optical Transport Network Equipment Market: Segmentation Analysis
The market research report segments the optical transport network equipment market by Technology (WDM and SONET/SDH) and Geography (North America, APAC, Europe, South America, and MEA).
The optical transport network equipment market share growth by the WDM segment will be significant for revenue generation. The WDM segment of the global OTN equipment market is expected to grow during the forecast period, primarily due to the significant investments of China in the development of broadband infrastructure, with a focus on 100G fiber-optic Internet connections. With the growing demand for data services, the demand for high-speed fixed broadband is also increasing, along with the demand for high-speed data center interconnections. In response to the growing demand for high-speed broadband, service providers are replacing SONET gears with WDM equipment. The primary driving factor for the WDM segment will be the increasing demand for 100 Gbps networks during the forecast period.
To know about the market contribution of each segment - Request a sample report
Related Reports:
- The commercial bain-marie heaters market share is expected to increase by USD 35.41 million from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 5.8%. Download a sample now!
- The decorative lighting market share is expected to increase by USD 8.32 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 4.75%. Download a sample now!
Optical Transport Network Equipment Market Scope |
Report Coverage |
Details |
Page number |
120 |
Base year |
2019 |
Forecast period |
2020-2024 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16% |
Market growth 2020-2024 |
USD 16.64 billion |
Market structure |
Concentrated |
YoY growth (%) |
13.78 |
Performing market contribution |
North America at 36% |
Competitive landscape |
Leading companies, competitive strategies, consumer engagement scope |
Companies profiled |
ADTRAN Inc., ADVA Optical Networking SE, Ciena Corp., Cisco Systems Inc., Fujitsu Ltd., Huawei Investment & Holding Co. Ltd., Infinera Corp., Juniper Networks Inc., Nokia 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 future consumer dynamics, market condition analysis for 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. |
Table of Content
Executive Summary
Market Landscape
- Market ecosystem
- Market characteristics
- Value chain analysis
Market Sizing
- Market definition
- Market segment analysis
- Market size 2019
- Market outlook: Forecast for 2019 - 2024
Five Forces Analysis
- Five forces summary
- Bargaining power of buyers
- Bargaining power of suppliers
- Threat of new entrants
- Threat of substitutes
- Threat of rivalry
- Market condition
Market Segmentation by Technology
- Market segments
- Comparison by Technology
- WDM - Market size and forecast 2019-2024
- SONET/SDH - Market size and forecast 2019-2024
- Market opportunity by Technology
Market Segmentation by End-user
- Market segments
- Comparison by End-user
- Communication service providers - Market size and forecast 2019-2024
- Enterprises - Market size and forecast 2019-2024
- Public sector - Market size and forecast 2019-2024
- Others - Market size and forecast 2019-2024
- Market opportunity by End-user
Customer Landscape
Geographic Landscape
- Geographic segmentation
- Geographic comparison
- North America - Market size and forecast 2019-2024
- APAC - Market size and forecast 2019-2024
- Europe - Market size and forecast 2019-2024
- South America - Market size and forecast 2019-2024
- MEA - Market size and forecast 2019-2024
- Key leading countries
- Market opportunity by geography
- Market drivers
- Market challenges
- Market trends
Vendor Landscape
- Vendor landscape
- Landscape disruption
- Industry risks
Vendor Analysis
- Vendors covered
- Market positioning of vendors
- ADTRAN Inc.
- ADVA Optical Networking SE
- Ciena Corp.
- Cisco Systems Inc.
- Fujitsu Ltd.
- Huawei Investment & Holding Co. Ltd.
- Infinera Corp.
- Juniper Networks Inc.
- Nokia Corp.
- ZTE Corp.
Appendix
- Scope of the report
- Currency conversion rates for US$
- Research methodology
- List of abbreviations
About Technavio
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 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.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/
SOURCE Technavio
Share this article