Infonetics: Carrier Spending on OTN Switching and P-OTS Jump 35% YoY

The global optical transport network (OTN) market totaled $4.3 billion in the first half of 2014 (1H14), an increase of 9% from the first half of 2013 (1H13), however sales of OTN switching gear jumped 35% in the period, according to a new report from Infonetics Research.

“The dramatic growth of OTN switching we saw last year carried over into the first half of 2014 (1H14), with revenue soaring 35% from the same period a year ago as deployment is catalyzed by service providers continuing rollouts of 100G coherent technology,” notes Andrew Schmitt, principal analyst for carrier transport networking at Infonetics Research. “Most of the growth in OTN switching is coming from North America as spending trends stagnate again in EMEA. The P-OTS market is also up 35% in 1H14, as providers continue to favor packet optical systems that combine OTN and Ethernet switching over more complex and expensive carrier Ethernet systems.”

Some highlights of the report:

• Alcatel-Lucent, Ciena, and Infinera are the key beneficiaries as service providers adopt integrated WDM and OTN switching and deploy 100G coherent technology in the core
• Meanwhile, Chinese carriers continue to expand deployments of OTN switching, benefitting both Huawei and ZTE
• Incumbent vendors Ciena, Cisco, Coriant, Fujitsu, and Huawei (listed in alphabetical order) are the P-OTS market leaders, and new players BTI, Cyan, and Transmode are challenging with pure-play P-OTS platforms
• The OTN market is forecast by Infonetics to grow at a 12% compound annual growth rate (CAGR) from 2013 to 2018, slightly faster than the wavelength division multiplexing (WDM) segment

http://www.infonetics.com/pr/2014/1H14-OTN-Packet-Optical-Hardware-Market-Highlights.asp