Packet optical switching market climbing

08/09/2011

The packet optical switching market is expect to rise steadily between now and 2015 because of increased spending from telecom carriers, according to a recent Heavy Reading study.

Overall, the study anticipates the market to climb by a compound annual growth rate of 66.5 percent between 2010 and 2015. By the end of the period, the packet optical switching sector will be valued at approximately $2.5 billion, the study said.

To a great extent, expansion in this sector of network equipment comes in response to the continued maturation of the core packet optical transport technology. Migration to packet switching, WDM switching and OTN switching are all fueling growth in the sector as well, the study found.

Growth is being fueled, in part by carrier spending, but much of the sector's expansion can more closely be attributed to companies replacing legacy networks. Heavy reading expects much of the packet optical switching market's growth to be due to companies replacing DEDM and Sonet/SDH systems.

Many networking trends are emerging around Ethernet's growing popularity. A recent TechTarget report explains a growing number of companies are investing in Ethernet-based WAN arrays to support high-performance standards.

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