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Digital Transformation Is Fastest Growing Segment Fueling The Growth Of Optical Transport Network Market

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Lucy Kart
Digital Transformation Is Fastest Growing Segment Fueling The Growth Of Optical Transport Network Market

The global Optical Transport Network Market is estimated to be valued at US$ 22.32 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Optical transport network consists of equipment such as wavelength division multiplexing which is used for transmitting data in the form of light pulses. Optical transport network allows data transmission over long distances through fiber optic cables and offers advantages such as higher data speeds, lower latency and cybersecurity. With increasing demand for bandwidth by data centers, enterprises and telecommunication operators, the need for optical transport network for higher data transmission capability is growing.

Market key trends:

One of the key trends in the optical transport network market is the increasing adoption of software-defined networking and network functions virtualization technologies. Organizations are shifting from conventional hardware-based network infrastructures to software-defined networking which separates the network control and forwarding functions. This allows more flexible, scalable and programmable networks. Integration of SDN and NFV technologies in optical transport network helps in network automation, easier provisioning of network services and reduces network complexities and costs. This trend is expected to drive the demand for SDN/NFV enabled optical transport solutions.

Segment Analysis

The global optical transport network market is segmented into different components, services, and end-users. Based on components, the market is divided into optical fiber, optical switch, optical packet platform, optical transceiver, and others. Among these, the optical fiber segment dominated the market in 2023 and is expected to remain dominant during the forecast period. Optical fiber provides higher bandwidth capabilities at lower costs as compared to other components, thus driving its adoption across various end-use industries.

Key Takeaways

Global Optical Transport Network Market Size was valued at US$ 22.32 Bn in 2023 and is expected to witness high growth, exhibiting a CAGR of 10% over the forecast period, due to increasing demand for high-speed internet connectivity.

Regional analysis - Asia Pacific dominated the optical transport network market in 2023 and is projected to continue its dominance during the forecast period. Growing government investments to develop advanced telecom infrastructure and increasing internet penetrations are propelling the market growth in the region.

Key players operating in the optical transport network market are Nokia Corporation, Ciena Corporation, Cisco Systems Inc., Huawei Technologies Co. Ltd, ZTE Corporation, Fujitsu Corporation, Infinera Corporation, Telefonaktiebolaget LM Ericsson, NEC Corporation and Yokogawa Electric Corporation. Key players are focusing on the development of next-generation networking technologies to expand their market share. For instance, in 2023, Nokia Corporation launched a new portfolio of optical transport networking solutions to simplify network operations for 5G transport.


Read More- https://www.newsstatix.com/optical-transport-network-market-growth-analysis-and-future-prospects/

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