Optical Transport Network Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Optical Transport Network Market was valued at USD 23.64 billion in 2020 and is expected to reach USD 56.09 billion by 2026, at a CAGR of 15.49% over the forecast period 2021 - 2026. With the advancements in Internet of Things (IoT) and Machine-to-Machine (M2M) communications, a substantial amount of data is expected to be generated. Hence in return, this will provide a significant growth potential for the optical transport network market.

• The telecommunications industry and service provider networks are rapidly evolving to deal with the explosion of digital traffic driven by multimedia services, mobile applications, social media, VoIP, and cloud computing. Also, there is an ever-growing array of bandwidth-hungry applications. Therefore, the explosion of digital traffic will have a positive impact on the optical transport network market.
• In addition to telecommunications, the growing demand for 100 Gz system deployment for fast and reliable services, and higher bandwidth demand in government organizations as well as in numerous financial companies are expected to encourage the optical transport network market.
• However, on the flip side, the initial deployment cost is a major restraint for this market during the forecast period.

Scope of the Report

Optical Transport Network (OTN) is a protocol that plays a key role in making the network an open and programmable platform, enabling transport to become as important as computing and storage in intelligent data center networking. Today, most of the network traffic is packet-based, generated by a multitude of services and applications in unpredictable traffic patterns, with widely varying and more stringent demands on bandwidth and data transmission performance. Additionally, enterprise companies need high speeds, reliability, and high uptime for data processing and other tedious processing applications. Hence, they are constantly in search of optimal network solutions. To avoid losses, owing to system failures, companies rely on high-speed optical transport networks.
 

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Key Market Trends

IT and Telecom Industry to Drive the Optical Transport Network Market

• The wireless infrastructure market is evolving at a higher rate and as a result, 5G is also evolving. 5G mobile network technologies offer the potential of 30 to 50 times faster speeds than 4G.  
• Cisco forecast that the average smartphone will generate 11 GB traffic per month, by 2022, which is more than a four and a half-fold increase over the 2017 average of 2 GB per month. The increase in mobile traffic will create a huge opportunity for the optical transport network market.
• Further, the performance improvements offered by 5G are considered a key element in the expansion of the Internet of Things.  Entirely new applications, including virtual/augmented reality and autonomous vehicle management, will require the speed and reliability promised by 5G.
• Moreover, the emerging cloud architecture with its software-centric network paradigm also presents opportunities for telecom vendors and service providers to evolve and develop innovative products and services that can contribute to the overall growth of the global telecom industry.
• Together these changes will put greater demand on the mobile data transport network and have a positive impact on the optical network architecture to better accommodate these requirements.

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