OTN market booming says Infonetics

Sales of Optical Transport Network (OTN) transport and switching equipment grew 23% year-on-year during the first six months of 2013, reports Infonetics Research. OTN switching sales led the way, according to the market research firm’s new OTN and Packet Optical Hardware report.

OTN sales for the first half of this year reached $3.9 billion, Infonetics reports. OTN switching did particularly well, with such spending growing 80% in North America versus the first six months of 2012.

"OTN switching is experiencing breakout growth in North America and EMEA (Europe, Middle East, Africa), where service providers are adopting integrated WDM and OTN switching and rolling out 100G coherent in the core," notes Andrew Schmitt, principal analyst for optical at Infonetics Research.

Fujitsu was a primary beneficiary of the growth in OTN interest. The company saw its hardware revenue market share jump 152% year on year, according to the report.

Meanwhile, packet-optical transport systems (P-OTS) sales picked up 41% in the first half of the year as well. "P-OTS growth in the first half of 2013 was healthy as a result of Tier 1 carriers ramping spending versus 2012,” Schmitt explains. “We're seeing some of the SONET/SDH spending that went away come back in the form of increased packet-optical activity."

The field of P-OTS suppliers is crowded. Infonetics described such mainline optical transport systems suppliers as Alcatel-Lucent, Ciena, Cisco, Fujitsu, and Tellabs “the P-OTS market leaders,” but noted that such companies as BTI, Cyan, Ericsson, and Transmode have gained traction with pure-play P-OTS platforms.

Infonetics' biannual OTN and Packet Optical Hardware report provides worldwide and regional market size, vendor market share, forecasts through 2017 and analysis for OTN transport and switching equipment and P-OTS metro edge and metro regional hardware, including port revenue forecasts by type and speed.

For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.