The global optical transport network hardware market is anticipated to grow significantly during the forecast period, 2021-2028. The growth of the market is attributed to the technological innovations in the optical transport network (OTN) hardware market along with the constant demand for high-speed communication.
An optical transport network is a composite of optical network elements which are interconnected by multiple optical fiber links. OTNs provide to improve functionality for various services including network routing, management, transport, supervision, and multiplexing. Bandwidth and latency are two key systems that help to boost the implementation of any communication network. With the introduction of smartphones and other high-tech mobile devices, the demand for high-speed network infrastructure is rising globally due to the existing challenges such as mobile network congestion impact by increasing communication traffic. To ensure mobile networks function at high speeds every time, the service operators had to adopt OTN hardware and this results in high cost in terms of investment. However, rising development of latest technological innovations such as multipurpose OTN architectures and dense wavelength division multiplexers are key drivers for the market expansion.
The OTN hardware is an equipment that combines the basic features such as optical channel data switching unit with the advanced features including tandem connection monitoring. This allows the networks to flow in a more streamlined manner and with limited packet drops and traffic build ups, OTN becomes more efficient.
Market Trends, Drivers, Restraints, and Opportunities
- High penetration of ethernet services and mobile networks increasingly require high-speed network solution, which in turn, leading to a huge surge in the demand for OTN hardware. This presents one of the major drivers for the OTN hardware market.
- During the COVID-19 pandemic, majority of the brick-and-mortar stores have shut and preferred to attach with online platforms since online purchasing are being considered as a favorable alternative means for shopping. This has also led to the growing implementation of OTN to their infrastructure, making it a notable driver for the market growth.
- Increasing use of social platforms and wide access to several activities including live webcasting, online gaming, social media, and video conferencing both for commercial and individuals, the demand for OTN hardware is increasing from service providers. This is expected to drive the market growth.
- Growing demand for OTN hardware systems from both large enterprise as well as small & medium enterprises for effective functioning of their services act as a key driver for the market growth.
- Lack of the limited investment resources and high cost of the system installation present key restraining factors that can impede the market expansion.
Global Optical Transport Network Hardware Market Segment Insights
Optical packet platform systems segment to hold a large market share
Based on equipment, the market is divided into OTN switching, OTN transport, and optical packet platform systems. The optical packet platform systems segment is expected to hold a large market share during the forecast period owing to wide adoption of the equipment for various network hardware applications.
100G segment is projected to register substantial growth
In terms of applications, the global optical transport network hardware market is segmented into 40G and 100G. The 100G segment is projected to register substantial growth during the forecast period owing to rising investing in OTN hardware infrastructure impacted by the rapid growth of digitalization. Several companies are largely adopting on the 40G technology combining with multipurpose OTN architectures. However, companies are switching over to 100G technology with the advancement of technology along with the introduction of dense wavelength division multiplexers. While the 40G technology is used by households and other commercial projects, the businesses adopt 100G technology to hold their OTN running at maximum efficiency.
North America to account for a large share
On the basis of regions, the market is classified as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America is anticipated to account for a large share of the market during the forecast period owing to early adoption of the OTN technology to a larger scale from various enterprises in the region. Several innovations of the technology such as introducing the wavelength division multiplexing in the core network is a key driving factor for the regional market growth. However, the market in Asia Pacific is projected to expand at an impressive CAGR during the forecast period owing to wide investment from developing economies especially countries such as India and China in the 3G and 4G technology and adoption of these technology on smartphones.
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