The Global Optical Switching market to grow at a CAGR of 36.69% over the period 2012-2016 according to a recent report by Research and Markets.
One of the main factors driving the market is the increase in the high bandwidth requirements across all the geographies. High bandwidth is extremely important for activities such as file downloading, online gaming, IPVOD, and videophone usage.
One of the main trends witnessed in the Global Optical Switching market is the emergence of ultra-high-capacity optical networks. As a result of the recent deployment of 10G and 40G optical transmission networks, there is an upsurge in the deployment of higher capacities. Many leading vendors such as Alcatel-Lucent, Ciena, and Huawei have announced that they are going a step further in the future by innovating and conducting trials for capacities as large as 400G and 10 Pb per second transmission. Although the capacities are much larger than those required currently, they are considered as future investments because of the huge expansion in the data traffic.
Further, the report states that one of the main challenges is the need for high initial investment. High initial investment is required for the replacement of the existing copper lines with fiber-optic cables. Copper lines are less expensive than fiber-optic cables required in optical networks.
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