Research and Markets

Research and Markets

February 26, 2014 10:15 ET

400 G, OTN and Next-Generation Transport: A Market and Technology Forecast - 2014 Report Out Now

DUBLIN, IRELAND--(Marketwired - Feb. 26, 2014) - Research and Markets ( has announced the addition of the "400 G, OTN and Next-Generation Transport: A Market and Technology Forecast" report to their offering.

Carriers worldwide are outgrowing 100 G transport networks and taking first steps towards 400 G backbones. The author believes these ultra-fast networks will create major new revenue opportunities for optical components firms, silicon chipmakers and equipment companies alike. This new business will come from volume deployments of 400G networks themselves. It will also emerge from radical new directions in modulation, amplification, and multiplexing technology that will create openings for companies with novel WDM/OTN platforms of all kinds.

Many questions remain. How many carriers will jump to 400 G immediately? Which ones will be satisfied with 200 G cores for a few years, before shifting to 400 G transport networks? Which enabling technologies are available and will be deployed by equipment firms to make 400 G possible? And how will these equipment suppliers design their next-generation routers and switches to make them 400 G ready?

The answers to these questions will shape where and how the money will be made in the next few years in optical transport business. In this new report the author provides these answers, drawing on the evidence that is emerging from the slew of recent 400 G trials, as well as the plans by the leading systems firms.

This report provides a complete opportunity analysis and roadmap for 400 G transport, including an assessment of innovations such as superchannels and the latest modulation schemes, and the role of coherent and Raman technology, as well as the emerging standards framework for 400 G from the ITU and OIF. Based on this analysis, we identify the key capabilities that will be needed in next generation core network platforms and how they are most likely to be provided. The report also includes a granular eight-year forecast of the 400 G core market with breakouts by type of technology and network segment.

About the report:

The equipment covered in this forecast comprises OTN/WDM boxes, optical packet platforms and core routers. Deployments in metro/regional and long-haul/submarine networks are both included. In the analysis of 400G transport components it focuses on the growing roles of DSP, proprietary network processors, optical integration and WDM superchannels.

Finally, this report provides strategic profiles of major players in 400G transport space including Alcatel-Lucent, BT, Ciena, Cisco, Comcast, Coriant, Cyan, DANTE, Deutsche Telekom, Ericsson, EXATEL, France Telecom, Fujitsu, GlobalConnect, Huawei, Infinera, Jazztel, Juniper, KPN, Mobily, NEC, Netia, Nextgen, NTT, SaskTel, Shaw Communications, Sprint, Telefonica Chile, Telefonica Espana, Telekom Austria, TE SubCom, True, TeliaSonera, Verizon, Xtera, Zain, Zayo and ZTE.

From the report:

Equipment sales for 400G transport networks are expected to reach $528 million by 2019, while total consumption of optical and silicon components for this market is expected to reach almost $195 million by 2019.

Meanwhile, traffic patterns are changing in way that is radically reshaping opportunities in transport networks. By 2019, the author expects metropolitan/regional networks to be buying around $240 million in transport network equipment, only slightly less than that bought for long-haul pipes. In addition, 400G transport bandwidth will be "intelligent." Thus the author expects 400G transport networks to be designed around Software Defined Network (SDNs) concepts that speed up provisioning time for high data rate services.

Mobile broadband sources do not require much bandwidth individually, but collectively they can easily clog up fat backbones. This situation will only get worse as data from the Internet-of-Things hits the transport network. Mobile broadband traffic is also highly unpredictable. As a result, 400G transport pipes will have to adapt bandwidth to rapidly changing conditions.

The author believes that this need for intelligent 400G transport network will create growing opportunities for network processors and DSP chips. By 2019 shipments of network silicon of this kind will be worth around $47 million, growing to $95 million by 2021. These chipsets will effectively deal with analog/digital conversion, chromatic dispersion, PMD compensation, spectral efficiency, advanced modulation and non-linearities. However, many of the critical chips will be built in house by the equipment vendors.

Finally, the author notes that the move to 400G transport will inevitably lead to the need for many more optical components. As a result, the author believes that all the major platform vendors are going to make optical integration an increasing part of their product design strategy.

For now, the opportunity for integration in the 400G space is all about putting as many functions on an optical chip as possible. These functionalities could include muxes, lasers, modulators, detectors, VOAs, and various control elements. Going forward, new functionalities are going to be integrated into such chips: amplification (SOA) and tunability, for example.

Companies Mentioned:

- Alcatel-Lucent
- BT
- Ciena
- Cisco
- Comcast
- Coriant
- Deutsche Telekom
- Ericsson
- Fujitsu
- Huawei
- Infinera
- Jazztel
- KPN International
- Mobily
- Netia
- NextGen
- Orange-France Telecom/Renater
- SaskTel
- Shaw Communications
- Sprint
- TE Subcom
- Telefonica Chile
- Telefónica Espana
- Telekom Austria
- Verizon
- WaveLogic 3
- Xtera
- Zain

For more information and a full table of contents for the report visit

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