The global optical transport network hardware market is expected to be driven by technological innovations in the optical transport network (OTN) hardware market and the constant demand for high-speed communication over the forecast period. Bandwidth and latency issues are the key elements that determine the performance of a network. The demand for high-speed internet exists in both consumer and business users. This is expected to drive the carriers to enhance the data transmission speeds and increase the capacity of the network. The increasing congestion of mobile networks has developed the need for a new level of bandwidth to cope up with the increasing communication traffic. The demand from network carriers to swiftly and effectively manage the network costs has resulted in a shift towards multipurpose OTN architectures. Moreover, the introduction of 40G & 100G technologies is expected to fuel the growth of the OTN hardware market in the coming decade. The OTN hardware facilitates the users with faster data rates, thereby allowing the carriers to scale and handle the tremendous traffic of data over the network. Technological innovations by the OTN hardware manufacturers have led to the introduction of advanced features that have added value to data transfer in a network. The OTN hardware equipment is a combination of Optical channel Data switching Unit (ODU) and advanced features like Tandem Connection Monitoring (TCM).
The rapid growth in ethernet services and changing user requirements are driving the optical transport network hardware market. The OTN hardware serves in a variety of applications such as video, voice, and storage. It facilitates in handling the ethernet transparently and provides opportunities for better operations, administration, maintenance & provisioning management, and service transparency. The increased use of social media, live webcasting, video conferencing, and online gaming has led to a significant rise in the adoption of OTN technology. OTN hardware offers a robust and smooth network and overcomes the issue of transmission delays caused due to congestion in the network. The OTN hardware is perceived to be a successor of Synchronous Optical Network (SONET) and Synchronous Digital Hierarchy (SDH) as it overcomes the flaws of bandwidth limitation and latency issues and is expected to be replaced in the coming decade.
The optical transport network hardware market can be segmented on the basis of OTN equipment. It comprises of OTN switching, OTN transport, and optical packet platform systems (P-OTS). OTN switching equipment addresses the issue of bandwidth scaling by delivering economical and low latency switching layer and thus helps to deal with the challenge of traffic congestion in a network. OTN transport equipment represents the actual physical medium and monitors the performance of the entire network. The optical packet platform system helps in efficient transfer of data in packets over the network. Furthermore, P-OTS offers high reliability and resilience. High initial investments in installation and replacements of aging network hardware are expected to hinder the growth of the OTN hardware market.
North America dominates the optical transport network hardware market due to the adoption of high-speed communication technologies such as Wavelength Division Multiplexing (WDM) and 100G coherent technology in the core network that have stimulated the market growth among the North American countries. The regional market in the Asia Pacific region is expected to witness a surge in the demand for OTN hardware market owing to the high demand for high-speed communications due to the presence of developing economies in the region. The boom in the telecom sector, especially in countries such as India and China has led to the growth of the OTN hardware market in this region. Moreover, the increasing use of 3G and 4G enabled smartphones and high demand for Internet Protocol-based voice, video & data services have propelled the market growth in this region.
The key players in the optical transport network hardware market are 3Com, Adapter Inc., Adax Inc., ADS Technologies Inc., Advanced Micro Devices Inc., Alcatel-Lucent, Allied Telesis, Alloy Computer Products, Asante Technologies Inc., ATEN Technology Inc., Britestream Networks Inc., Broadcom, Ciena, Cisco, Fujitsu, Huawei Technologies, and Nokia Siemens.
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In order to ensure business continuity amidst the COVID-19 crisis, business organizations, especially in highly affected countries are allowing their employees to work from home. The increase in people working from home has led to a surge in demand for online video viewing, downloading, and communication through video conferencing, all of which are leading to increased network traffic and data usage. COVID-19 shall accelerate the demand for agile and flexible work styles and further push the adoption of communication services that tend to improve work-life balance. On the flip side, telecom regulators worldwide have postponed their plans of 5G spectrum auction amidst the global pandemic. This is expected to have an impact on the commercialization of commercial 5G standalone deployments and revenue generated through 5G services. The ongoing pandemic has forced telecom operators worldwide to test their network resiliency and revisit their planned investments, especially in 5G technology. The report will account for Covid19 as a key market contributor.