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Rising Bandwidth Needs and Shift Towards Coherent Core Networks Foster Sales of OTN Equipment, According to New Report by Global Industry Analysts, Inc.

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San Jose, California (PRWEB) May 24, 2013

Follow us on LinkedIn The global telecommunications market is being transformed with the emergence of new technologies, growing consumer demands, and increased service offerings. Communication technologies are also evolving due to the rapid development of data-intensive multimedia and computing applications and the growing ubiquity of mobile and wireless communication networks. With these market dynamics driving technology convergence across various network functions, wireline and wireless operators are looking to deploy automated and configurable network infrastructure including optical networks.


Optical network traffic continues to rise due to the increasing demand for greater bandwidth from both consumer and business users, which is in turn driving carriers to expand network capacities and enhance transmission speeds. This, coupled with the growing desire of carriers to manage network costs is driving the shift towards multi-purpose Optical Transport Network (OTN) and Ethernet packet-based network architectures, from the SONET/SDH-based networks. OTN, in particular, holds an edge over SONET/SDH architectures due to the promise of higher efficiency and greater convergence, which enables effective handling of high-bandwidth services. The need to offer support for high-speed services and address congestion in mobile networks is driving service providers to deploy OTN, and hence spurring sales of OTN equipment. Increased spending on 100G optical networks is a major growth driver for the OTN Equipment market, particularly in North America.


Demand for optical network equipment is being affected by the tough economic environment in developed countries, which is slowing down investment plans of major telecom carriers. Softening conditions due to the Eurozone crisis in Europe and fiscal cliff issues in the United States is contributing to a slight slowdown in demand for optical networking equipment. However in the coming years, spending is expected to gather momentum in North America, China, and Europe, Middle East and Africa, led primarily by the rising consumer use of devices with high-bandwidth access and home broadband services, and the growing need for efficiency and reliability from networks of enterprises and datacenters.


As stated by the new market research report on Optical Transport Network Equipment, the United States represents the largest market worldwide. Asia-Pacific is forecast to emerge as the fastest growing market with a CAGR of 17.7% over the analysis period. Growth in the region is led by the booming telecom sector specifically in India and China, increasing use of smartphones with 3G and 4G applications, and rising demand for IP-based video, voice and data. OTN Transport Equipment market is characterized by mature conditions, as against the OTN switching equipment market that is still in early developmental stages. Though similar to SONET/SDH multiplexing scheme, OTN switching holds an edge over the former in terms of its improved features and better management. Telecom carriers, particularly those with significant long-haul and regional networks, are expected to enhance investments on OTN switching equipment.


Major players covered in the report include ADTRAN Inc., ADVA Optical Networking SE, Alcatel-Lucent, Aliathon Technology Ltd., Ciena Corporation, Cisco Systems Inc., ECI Telecom Ltd., Ericsson, Fujitsu Limited, Huawei Technologies, Infinera Corporation, JDS Uniphase Corporation, NEC Corporation, Tellabs Inc., and ZTE Corporation.


The research report titled Optical Transport Network (OTN) Equipment: A Global Strategic Business Report announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in US$ for all major geographic markets including the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific, Middle East, and Latin America. Product segments analyzed include OTN-Transport Equipment and OTN-Switching Equipment.


For more details about this comprehensive market research report, please visit


About Global Industry Analysts, Inc.


Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world’s largest and reputed market research firms.


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