by The optical transport network (OTN) brings together key technologies like wavelength-division multiplexing (WDM) and synchronous optical networking (SONET) to transport multiple digital signals and services over the same optical fiber. OTN provides bandwidth-on-demand, fast restoration, flexibility and efficiency of bandwidth utilization through technologies like flexible grid, gridless networks, and software defined networking. It enables the transport of high-speed data streams ideal for upcoming 5G networks with capabilities around 100Gbps and higher.
OTN products includes transponder modules, muxponders and switches that help telecom carriers build high-capacity, reliable and intelligent transport networks. They ensure seamless transmission of voice, data and video application across metro and long-haul networks. As bandwidth demand spikes with 5G adoption, OTN provides the backbone for mobile operators to transport large volumes of data from site to core. 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 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the optical transport network market is the development of flexible grid solutions. Flexi grid or gridless optical networks allow for more efficient use of fiber capacity by allocating spectrum in bandwidth variable slots. They support flexible bandwidth allocation from 6.25GHz to flexi-slot granularity as low as 12.5GHz. This solution provides higher spectral efficiency compared to legacy WDM systems. Major OTN equipment providers are introducing flexi grid solutions integrated with software defined networking capabilities for fast, on-demand provisioning of optical bandwidth. As network services continue migrating to higher speeds, flexible grid networks will see wider adoption among telecom carriers for optimum resource utilization.
Porter’s Analysis
Threat of new entrants: The optical transport network market requires high capital investments for equipment and infrastructure development, thereby acting as a barrier for new companies.
Bargaining power of buyers: The presence of many established players provides buyers with various options to choose from, giving them higher bargaining power.
Bargaining power of suppliers: A few major component manufacturers supply to various network equipment vendors, allowing them stronger negotiating positions.
Threat of new substitutes: There are limited alternatives available for optical networks currently.
Competitive rivalry: The market is dominated by a few international players leading to high competitive intensity.
Key Takeaways
Global Optical Transport Network Market Size is expected to witness high growth over the forecast period. The growing need for high bandwidth connectivity is driving increased investments in network infrastructure development globally.
Regional analysis: North America dominated the market in 2022, with major investments by telecom operators to develop their 5G infrastructure in the region. Asia Pacific is expected to witness fastest growth on account of the expanding telecom sector and infrastructure development in major countries like China and India.
Key players: Key players operating in the Optical Transport Network market are Solvay SA, Nippon Chemical Industrial Co., Ltd., Hubei Xingfa Chemicals Group Co., Ltd., Sigma-Aldrich (Merck KGaA), LANXESS AG, Jiangxi Fuerxin Pharmaceutical & Chemical Co., Ltd., Nantong Xinbang Chemical Technology Chemical Co., Ltd., Triveni Chemicals, HBCChem, Inc., TCI Chemicals (Tokyo Chemical Industry Co., Ltd.), American Elements, Shanghai Worldyang Chemical Co., Ltd., Alfa Aesar (Thermo Fisher Scientific Inc.), Finetech Industry Limited, Shanxi Lanhua Sci-Tech Venture Co., Ltd. The market is dominated by a few leading players including Huawei and Ciena.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
