Date: 14/02/2012

Huawei to lead in the $10.6 Billion OTN equipment market estimated by 2015

Market research firm Infonetics Research has released its new OTN Hardware Market Outlook, where it has estimated the combined, global manufacturer revenue from OTN transport and OTN switching equipment to grow to $10.6 billion by 2015

"There has been a lot of discussion about the increasing use of OTN in carrier networks, but until now, little effort by the analyst community to quantify the size of the market," notes Andrew Schmitt, directing analyst for optical at Infonetics Research. "Our OTN report is unique in that it not only tracks OTN hardware, but it makes the important distinction between mature OTN transport equipment and nascent, fast-growing OTN switching equipment. Each segment is in a different stage of adoption and has a wildly different growth rate. Case in point: OTN switching revenue jumped 132% in 2010 over 2009, while OTN transport revenue grew 9%. Both segments are growing at a pace that far outstrips the 3.7% CAGR of the overall optical market."

The other findings shared by Infonetics include:
In 2011, OTN transport equipment spending made up 92% of the overall OTN hardware market, while OTN switching made up 8%; with the OTN switching segment growing much faster than OTN transport, these proportions will change significantly by 2015
Rapid growth in the OTN switching market is expected to continue as 40G and 100G coherent technology rollouts catalyze the deployment of new technologies, including OTN switching.
Huawei leads in both the OTN transport and switching markets; Huawei is a WDM powerhouse with the added benefit of counting as customers China's telecom carriers, who were the first to readily embrace all-OTN networks, including the largest installations of OTN switching
OTN switching and transport hardware together made up 45% of global optical equipment spending (WDM and SDH/SONET) in the first half of 2011, and is expected to grow to 70% of the total by 2015
Infonetics' related OTN Deployment Strategies: Global Service Provider Survey results provide evidence that there will be a large shift by 2014 in the area of optical switching