Market Trends of Optical Transport Network Industry
This section covers the major market trends shaping the Optical Transport Network Market according to our research experts:
IT and Telecom Sector to Drive the Market
- The rising demand for bandwidth from residential and commercial consumers is the main motivator for OTN. The increasing need for personal information stored in the cloud, online gaming, online shopping, staying connected over long distances, social networking, video conferencing, and other factors have all contributed to an increase in residential internet use. These applications demand increased network bandwidth from communications and service providers.
- For instance, according to DataReportal, Global internet users have climbed to 4.95 billion at the start of 2022, with internet penetration now standing at 62.5 percent of the world's total population. Moreover, there is approximately 1.134 Trillion MB of data created each day. These numbers themselves project the rising amount of data usage worldwide, which requires fast and reliable data networks like OTN.
- Additionally, according to CloudScene, an independent directory of high-speed internet, data centers, and cloud services, as of January 2022, there were 2,701 data centers in the United States and 487 more in Germany. China had 443 data centers, while the United Kingdom had 456, placing it third among all nations. In total, there were 6,334 data centers worldwide and counting, as new data centers are being constructed rapidly.
- Due to the rise in e-commerce, mobile and internet banking, online government services, industrial automation, Internet of Things (IoT), utility networking, and other related technologies, service providers are facing high-capacity demand from their commercial customers.
- Looking at the increasing pace of internet usage and its application in the IT and Telecommunication industry, the demand for OTN will continue to thrive as the demand for data and the internet increases globally.
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Asia-Pacific to Witness Fastest Growth
- According to Internet World Stats, the population of the Asia-Pacific region is 54.94% of total mankind, with average internet penetration of 64.1% as of June 2021. The two countries that constitute the significant user share in Asia is China and India, with 35.7% and 27.3% of the total internet user in Asia. Thus, these two countries are potential market leaders in the market studied.
- The number of IoT devices in China crossed 2 billion in 2021. It has also unveiled plans for robotics and smart manufacturing by 2025. As per the plan, by 2025, more than 70% of large-scale Chinese enterprises should be digitalized, and more than 500 demonstration manufacturing facilities will be built nationwide. Such a strategic measure is expected to increase the demand and potential growth of OTN solutions in the region.
- With the rapid development of AI, 5G, the internet of things, virtual reality, and the commercial application of these new technologies, the demand for data processing and information interaction is growing, which is expected to speed up the construction of data centers in the region and lead to the explosive growth of the industry. According to Cloud Scene, some of the top markets in data centers include China, Japan, Australia, India, and Singapore.
- Furthermore, in March 2022, Mitsubishi Electric Corporation announced that it would begin shipping samples of its 50Gbps distributed-feedback (DFB) laser diode for optical-fiber communication in fifth-generation (5G) mobile base stations. The novel diode meets all essential optical-transceiver requirements and has an operating temperature range for high-speed, large-capacity data transmission in 5G mobile networks.
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