In a just released report, Infonetics Research summarizes the 2013 optical network hardware (OTN and SONET/SDH) and Packet Optical Transport System (P-OTS) markets, provides their 2014 outlook, as well as which vendors are benefiting the most.
OTN AND P-OTS MARKET HIGHLIGHTS:
. Worldwide overall OTN revenue totaled $8 billion in 2013, or 66% of all optical network hardware spending
. The OTN switching segment of the market grew 37% in 2013
. The market for P-OTS equipment came to $1.7 billion in 2013, split fairly evenly between metro edge and metro regional P-OTS gear
. P-OTS revenue grew 32% between the second half of 2012 and the second half of 2013
. Infonetics projects the OTN switching segment to grow at about a 20% compound annual growth rate (CAGR) from 2013 to 2018
Infonetics previously reported that service providers are choosing OTN switching as the technology best suited to filling 100G pipes, because it enables efficient aggregation of diverse services and protocols over a single link.
“OTN switching had a major year of growth in 2013 as service providers prioritized installation of integrated WDM+OTN switching and 100G coherent technology in the core. Alcatel-Lucent, Ciena, and Infinera are the key beneficiaries here,” notes Andrew Schmitt, principal analyst for optical at Infonetics Research. “Meanwhile, Chinese carriers continue to expand large deployments of OTN switching, with Huawei as the sole beneficiary.”
Schmitt adds: “Over in the P-OTS space, incumbent vendors Cisco, Fujitsu, Tellabs, Ciena, and Alcatel-Lucent are the market leaders, but new players BTI, Cyan, Transmode, and Ericsson are challenging with pure-play P-OTS platforms.”
On Feb 18, 2013, Schmitt wrote: “Optical spending flattened in the fourth quarter of 2013, though it wasn’t distributed evenly around the world or by vendor. Weakness was concentrated in North America, but a year-end capex surge in EMEA evened things up. All indications are that an all-clear from Verizon and AT&T is forthcoming and the Q4 drop was a pause rather than a reversal — and this is in line with our forecasts.”
Infonetics’ biannual OTN and packet optical report provides worldwide and regional market size, vendor market share, forecasts through 2018, analysis, and trends for OTN transport and switching hardware, including metro edge and metro regional port revenue forecasts by type and speed. Companies tracked: Adtran, Adva, Alcatel Lucent, BTI, Ciena, Cisco, Cyan, ECI, Ericsson, Fujitsu, Huawei, Infinera, NEC, NSN, Tellabs, Transmode, ZTE, and others.
To buy the report, contact Infonetics:
Andrew Schmitt, Principal Optical Analyst at Infonetics is speaking at four OFC/NFOEC sessions this week in San Francisco:
Low Cost 100G Interfaces for Metro Access: Standardized or Proprietary?
|Mar. 10, 9:00 am|
Market Watch: Panel 1: State of the Industry
|Mar. 11, 12:00 pm|
Flexible Rate OTU for Beyond 100G
|Mar. 12, 8:00 am|
The Buzz – A Real-time Look at the News and Trends Happening at OFC
|Mar. 12, 3:30 pm|
In related optical transport news, Windstream today announced it’s deploying the Infinera DTN-X platform, featuring 500 Gigabit per second (Gb/s) super-channels across Windstream’s long-haul express network. The Infinera Intelligent Transport Network enables Windstream to differentiate their services, protect their investment and lower operational expense as they scale their network.
Windstream operates a nationwide fiber and IP network, covering 118,000 miles of fiber and 27 data center locations across the nation. As a cloud solutions provider, Windstream serves businesses with a wide range of cloud communication needs, in addition to offering an advanced data, voice and video network that provides customers low latency and reliable 100 Gigabit Ethernet services.
“By deploying the Infinera Intelligent Transport Network, Windstream will significantly increase the capacity of our network infrastructure to meet the needs of our customers,” said Randy Nicklas, executive vice president of engineering and chief technology officer for Windstream. “The DTN-X platform enables us to offer services that result in lower latency for mission critical applications while providing a network that is even more reliable and enables rapid provisioning of services.”
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