Packet-Optical Switching Market to Grow by 66.5%

Packet-optical switching market to increase to $2.9B by 2015, finds Heavy Reading

August 10, 2011

2 Min Read

CAMBRIDGE, Mass. -- The global market for packet-optical switching systems is expected to increase to $2.9 billion by 2015, representing a 66.5% compounded annual growth rate from 2010-2015, according to a new market tracker product just released from Heavy Reading (

Heavy Reading's Next-Gen Core Packet-Optical Market Tracker is a new bi-annual forecasting service for tracking the core optical network migration to packets. It charts the evolution of core packet-optical transport from the very beginning – delivering concise and complete up-to-the-minute intelligence covering the migration to OTN switching, integration of WDM and switching, the role of packet switching and connection-oriented Ethernet in the core, and other major trends as they emerge.

"Packet-optical switching will benefit from a modest increase in carrier spending on the core network, but mostly will grow at the expense of spending on stand-alone long-haul DWDM systems and stand-alone Sonet/SDH-based optical crossconnects," says Sterling Perrin, Heavy Reading's Optical Networks Senior Analyst. "As a result, packet-optical switching will increase from a 6.2% share of core transport and switching spending in 2010 to 53.5% of total spending in 2015."

"Many vendors are viewing the new core optical transport switching requirements as an opportunity to enter a segment that has been closed off for about a decade," explains Perrin. "In the first generation of optical switching – based on Sonet/SDH crossconnects – there were really only three significant players: Alcatel-Lucent, Huawei and Ciena. As the industry moves to OTN-based switching, there are already eight suppliers vying for the opportunity, with additional suppliers sure to join the mix," he adds.

The Next-Gen Core Packet-Optical Market Tracker is part of Heavy Reading's new Packet-Optical Networks Subscription Service, which also includes the Packet-Enabled Optical Networking Quarterly Market Tracker, bi-monthly Analyst Advisory Updates, Optical Networking reports and Analyst Access consulting hours.

Heavy Reading

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