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OTN Switching Poised for Growth

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Light Reading
1/17/2013
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BOSTON -- Market research firm Infonetics Research released excerpts from its latest OTN and Packet Optical Hardware market share, size, and forecasts report, which tracks optical transport network (OTN) transport equipment, OTN switching equipment, and packet-optical transport systems (P-OTS). ANALYST NOTE
"Though OTN switching currently makes up only a small portion of the overall OTN market and deployments have been centered mostly in China, we anticipate breakout growth for this segment as operators in EMEA and North America adopt integrated WDM+OTN switching as part of the roll out of 100G coherent technology in regional and core networks," notes Andrew Schmitt, principal analyst for optical at Infonetics Research. "We're forecasting the OTN switching segment to grow at a 5-year compound annual growth rate of 28% from 2012 to 2016." OTN AND P-OTS MARKET HIGHLIGHTS

  • Infonetics expects the OTN market (OTN transport and switching equipment) to grow at 13% CAGR through 2016, slightly faster than the underlying WDM market it mostly overlaps
  • Once final figures are in for the full year 2012, Infonetics expects OTN revenue to total $7 billion, or 65% of all optical equipment spending
  • The market for P-OTS equipment is anticipated to be $1.26 billion in 2012, with 55% of revenue coming from metro edge P-OTS and 45% from metro regional P-OTS
  • Incumbent vendors Tellabs, Alcatel-Lucent, Cisco, Fujitsu, and Ciena are the P-OTS market leaders, but new players including BTI, Cyan, Transmode, and Ericsson are challenging with pure-play P-OTS platforms Infonetics Research
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