The global optical transport network equipment market to grow at a CAGR of 21.68% during the period 2017-2021.
Global Optical Transport Network Equipment Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
The carriers in the market are on the lookout to reduce the capital expenditure (CAPEX) while adjusting and addressing the changes in the traffic type and the increased traffic over the network. The OTN control plane, based on generalized multiprotocol label switching (GMPLS), automates many of the functions of the OTN.
The latest trend gaining momentum in the market is Increasing applications of the IoT. The IoT is the latest trend in the global technology arena. It is connecting all essential home devices to the Internet. It basically means that all the electronic gadgets can be interconnected and, hopefully, in the near future, will be able to interact among themselves. All the major gadget makers, such as SAMSUNG, Dell, Apple, and Microsoft, have dedicated considerable resources for the R&D of the IoT.
Due to this, the future households will have a lot of connected nodes and appliances that are interconnected wirelessly so that they can together sense the surrounding environment and act accordingly. The increasing applications of the IoT will require OTNs that have the capacity and capability to support high bandwidths. Devices will be able to communicate with each other and bring further optimization to the experience of the users. This optimization can make the applications more convenient to the end-user.
According to the report, one of the major drivers for this market is Migration to the WDM architecture. OTNs have started migrating to WDM architecture from the SONET and SDH technologies over the last couple of years. The deployment of WDM systems by carriers is benefiting them largely as such systems are able to tap into enormous capacities by carrying multiple wavelengths over a single optical fiber. This has allowed carriers to make significant cost reductions over the cost of deploying single-channel networks or the cost of overlaying multiple networks for each service offering.
The benefits of such systems include fault detection, performance monitoring, and the isolation of the wavelength. In the early stages of implementation, many of these features were missing or were not implemented properly by the WDM equipment vendors. Once these issues are resolved by the vendors, the actual benefits of such systems will be realized. Thus, the migration to the WDM architecture is expected to fuel the demand for OTN equipment during the forecast period.
Further, the report states that one of the major factors hindering the growth of this market is High initial investment. Customers such as telecommunication providers and data center providers are finding a significant surge in the 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.