Huawei leads in OTN transport and switching markets

By Telecom Lead Team: Telecommunications equipment major Huawei leads in both the OTN transport and switching markets.


Huawei grew its business thanks to China’s telecom carriers,
who were the first to embrace all-OTN networks, including the largest
installations of OTN switching.


OTN switching and transport hardware together made up 45
percent of global optical equipment spending (WDM and SDH/SONET) in the first
half of 2011, and is expected to grow to 70 percent of the total by 2015.


Combined, global manufacturer revenue from OTN transport
and OTN switching equipment is likely to grow to $10.6 billion by 2015,
according to Infonetics Research.


In 2011, OTN transport equipment spending made up 92
percent of the overall OTN hardware market, while OTN switching made up 8
percent; 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.


“Each segment is in a different stage of adoption
and has a wildly different growth rate. Case in point: OTN switching revenue
jumped 132 percent in 2010 over 2009, while OTN transport revenue grew 9
percent. Both segments are growing at a pace that far outstrips the 3.7 percent
CAGR of the overall optical market,” said Andrew Schmitt, directing analyst
for optical at Infonetics Research.


editor@telecomlead.com

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