Optical Communication and Networking Equipment Market Segmented By Fibers, Transceivers, Amplifier, Switches, Splitters, Calculators, Sensors Components WDM-based, CWDM-based, DWDM-based, SONET-based, Fiber Channel-based Technology
Industry: IT and Telecommunication
Published Date: May-2022
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 319
Report ID: PMRREP33080
The optical communication and networking equipment market is anticipated to document a CAGR of 7.3% during the period of 2022-2032. The market is anticipated to reach US$ 44.5 Billion in 2032, increasing from US$ 22 Billion in 2022.
“The acceleration in deployment of VOIP, LTE, and 5G networks is expected to provide lucrative opportunities for the market growth, which in turn is anticipated to propel growth of the optical communication and networking equipment market.”
| Attributes | Details |
|---|---|
|
Optical Communication and Networking Equipment Market CAGR (2022-2032) |
7.3% |
|
Optical Communication and Networking Equipment Market Size (2022) |
US$ 22 Billion |
|
Optical Communication and Networking Equipment Market Size (2032) |
US$ 44.5 Billion |
Key factors such as surge in data traffic owing to the increased internet usage, increasing number of data centers, and rise in adoption of cloud based as well as virtualization services fuels growth of the market.
Rising adoption of cloud-based services and virtualization services all over the world, increasing data traffic due to increased internet usage, and growing number of data centers are some factors that are expected to accelerate the growth of optical communication and networking equipment market during the forecast period. Moreover, the market is expected to witness a recovery in its growth rate in the coming years, owing to the growing focus of organizations to fulfill upsurge in demand for telecommunication equipment driven by rapid acceleration in 5G deployment across the globe.
Additionally, the pandemic has boosted the number of fiber optic broadband lines around the globe due to more data traffic as well as new broadband demands with people staying at home. For instance, according to IDATE, a Media company and the FTTH Council Europe, a non-profit organization, high speed fiber will pass 202 million houses in the European Union and Britain by 2026, up from 88.1 million in 2019. This is mainly driven by the acceleration in demand for faster internet services due to COVID-19 pandemic.
Further, major factors such as surge in data traffic owing to the increased internet usage, increasing number of data centers, and rise in adoption of cloud based as well as virtualization services fuels growth of the market. In addition, an increase in demand for advanced network equipment due to COVID-19 pandemic is anticipated to propel the growth of the market during the analysis period. The acceleration in deployment of VOIP, LTE, and 5G networks is expected to provide lucrative opportunities for the market growth. In addition, rise in adoption of AI and IoT is anticipated to be opportunistic for the growth of the optical communication and networking equipment industry during the forecast period.
The modern data center networks with their vast bandwidth and scale requirements are adopting optical communication and networking equipment. Only the optical communication technology has demonstrated capacities of 10 GB/s, 40 GB/s, and higher, over large distances. Therefore, increasing number of data centers across the globe depend on interconnects for delivering critical communications connectivity among numerous servers, computation, and memory resources. However, factors such as explosive growth of Internet Protocol (IP) traffic and growth of cloud computing is driving number of data centers around the globe. Therefore, increase in number of data center significantly fuels the growth of the optical communication and networking equipment market.
In addition, increasing adoption of cloud based and visualization service in several sectors, escalating demand for IoT solutions, and surging number of optical data centers are fueling market growth. In addition, rising trend of using higher bandwidth devices and growing requirement for 5G infrastructure are augmenting industry outlook. Moreover, an increase in penetration of smartphones in the global market and rising demand for mobile broadband services are the main driving force behind the tremendous growth of global optical communication equipment market. The advanced technologies like cloud computing and cloud storage also helps this market to growth with significant CAGR over the forecast period.
Additionally, the recent establishments of data centers by major technological companies also act as a driver for the optical communication equipment market. With the growth of increase in usage of internet worldwide which increased due social networking, gaming and online shopping etc. there is an increase in demand for higher bandwidths from both residential and businesses. Furthermore, recent government programs in developing countries and telecommunication liberalization worldwide can predict an increase in demand for optical communication equipment market.
The optical communication and networking equipment market provides numerous features such as deeper win insights and attribution around drivers, as well as greater sales targeting efficiency, but has few restraints as well.
High initial deployment cost is a major restrain to market growth however, high bandwidth requirements by the enterprises and government organizations are facilitating the deployment. Limited infrastructure for fiber-optic networks could pose a challenge to the optical network equipment market.
Moreover, the high cost of long-distance cables poses a challenge for optical communication but the long-term returns are high. In addition, the rising network complexities is one of the major factors that is expected to hinder the growth of the optical communication and network equipment market over the analysis period.
| Attributes | Optical Communication and Networking Equipment Market |
|---|---|
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CAGR (2022-2032) |
7.3% |
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Market Value (2032) |
US$ 44.5 Billion |
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Growth Factor |
The global optical network equipment market is expected to be driven by growing demand for bandwidth from both business and residential customers. |
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Opportunity |
Increasing internet usage for service such as online gaming, video chatting, social media, online shopping, etc. is expected to favor market growth over the forecast period. |
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Key Trends |
The increasing demand from business segments particularly financial and government organizations is also expected to provide positive avenues to the market. |
| Attributes | Optical Fiber Market |
|---|---|
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CAGR (2022-2032) |
11.6% |
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Market Value (2032) |
US$ 81.5 Billion |
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Growth Factor |
The adoption of fiber optic cables to send signals with less amount of loss has increased over the period, which drives the growth of the market. |
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Opportunity |
Technological advancements in the fiber optic cable technology and rise in investments in optical fiber cable (OFC) network infrastructure are expected to provide lucrative opportunities for the market. |
|
Key Trends |
Widespread implementation of 5G, increase in adoption of fiber to the home (FTTH) connectivity to boost the market growth. |
| Attributes | Optical Amplifier Market |
|---|---|
|
CAGR (2022-2032) |
6.7% |
|
Market Value (2032) |
US$ 935.2 Billion |
|
Growth Factor |
Increased internet penetration, combined with rise in demand for faster internet/data speeds, is likely to be a major driver of the fiber optic amplifier market. |
|
Opportunity |
The 4G facilities, which are gradually being provided by various mobile telecom businesses in order to minimize internet traffic and deliver the greatest communication services to all mobile operators around the world, are the of optical amplifier market opportunity. |
|
Key Trends |
Government programs aimed at improving network connectivity have a significant demand for fiber optic communication systems to be implemented. |
The amount of information traveling across the internet is experiencing continuous growth, as more number of devices are connected as well as new applications are being developed. For instance, this growth is demonstrated in the Cisco Visual Networking Index, which shows that Internet Protocol (IP) traffic across the globe is increasing rapidly and the mobile data traffic is estimated to grow exponentially and reach about 30.6 exabytes per month in 2020. In addition to this, a growing number of smartphone users is projected to boost the internet usage.
Moreover, as the internet traffic increased exponentially, with more number of diversified services and applications, the capacity of optical networks has expanded accordingly. Fiber optics offer increased bandwidth to its users; hence, there is upsurge in demand for optical communication and networking equipment. This factor primarily drives the growth of the optical communication and networking equipment market.
A gradual increase in the IPTV and broadband connections is also adding up to the optical networking market growth. Increasing optical network infrastructure worldwide such as the installation of optical fiber to meet the demand for bandwidth-intensive applications is expected to drive the optical network equipment market.
Additionally, growing data center interconnection and network access deployments are estimated to positively impact market growth. Additionally, various benefits such as advanced security, high restoration capacity, and return on investment, simplified operations, and optimized bandwidth connectivity are also expected to propel the optical network.
Growing research investments and continuous technological advancements may offer new opportunities to the optical network equipment market. Adoption of optical fibers and reconfigurable optical add-drop multiplexer (ROADM) equipment are expected to gradually replace non-optical fiber networks. Main advantages of ROADM include automatic power balancing, remote configuration based on requirements without affecting the traffic. The rising demand for FTTH has strengthened the growth of the market. Various advantages of FTTH such as high speed, reliability, and capacity are expected to favor the market. The emergence of Bit-Interleaved Passive Optical Network (Bi-PON) technology which enables a power reduction of 30% over current technologies while improving performance and reducing cost is also expected to provide new market growth opportunities.
The latest technological advancements and advent of industry 4.0 has propelled optical communication and networking equipment market. The rising adoption of cloud-based and virtualization services globally is one of the key factors which will foster market growth.
By Component, the optical fibers segment of the market is estimated to witness the highest CAGR of 6.8%, during the forecast period. The factors can be attributed to the introduction and adoption of new applications such as wearable devices, IoT, and cloud computing owing to the change in consumer needs.
The increasing internet penetration and data traffic are leading to the rapid growth of data centers, along with the need for high transmission networks driving the acceptance of the optical transceivers segment.
WDM technology to dominate the optical communication and networking equipment market with the highest CAGR of 6.7% during the forecast period. The development of ROADM-based WDM networking solutions is one of the emerging trends in the global optical networking and communications market.
Manufacturers are investing huge capital in building WDM ROADM-based optical equipment so that they can provide faster and higher transmission capacity networks to their customers.
| Regions | CAGR (2022-2032) |
|---|---|
|
United States |
6.9% |
|
China |
6.8% |
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Japan |
6.3% |
|
UK |
5.7% |
The global optical communication and networking equipment market by region covers five major geographic regions: North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America.
Asia Pacific dominates the optical communication and networking equipment market during the forecast period, owing to the growing adoption of smartphones, a growing number of internet users, the rising demand for connectivity, growing focus on improving existing networks and establishing new connectivity networks, increasing bandwidth-intensive applications, such as video-on-demand services, and availability of government funding will boost the market in Asia Pacific region.
In addition, Asia-Pacific is estimated to be the largest market, with China, Japan, South Korea, and India being the major countries with lucrative growth opportunities. The region is the major hub of consumer electronics along with automobiles, and industrial verticals. Rising connectivity solutions from 3G to 4G technology, increasing spending for the development of 5G mobile technologies, and growing number of internet users, are some other major growth drivers of the region’s market. Increasing investments in R&D activities, and rising focus of IT companies on the growth of big data analytics and cloud-based services in the region are expected to further fuel the growth of this market.
The U.S is expected to represent a massive growth of US$ 15.6 Billion, with a CAGR of 6.9% during the forecast period. Whereas, China is expected to represent a CAGR of 6.8% to reach a market share of US$ 3.2 Billion during the forecast period. On the other hand, Japan is expected to represent a CAGR of 6.3%, to reach a market share of US$ 2.7 Billion during the forecast period. U.K is expected to represent a CAGR of 5.7%, to reach a market share of US$ 1.9 Billion during the forecast period. Besides, South Korea is expected to represent a CAGR of 6.1%, to reach a market share of US$ 1.8 Billion during the forecast period.
Arista Networks, Inc., Cisco System Inc., Fujitsu Optical Components Limited, Huawei Technologies Co., Ltd., Juniper Networks, Inc., Mitsubishi Electric Corporation, NEC Corporation, Nokia Corporation, Telefonaktiebolaget LM Ericsson, and ZTE Corporation, among others are the top companies in the global optical communication and networking equipment market.
In order to strengthen their position in the global optical communication and networking equipment market, organizations are focused on industry collaborations, mergers & acquisitions, and partnerships.
The research offers a comprehensive competition analysis of some top competitors in the optical communication and networking equipment market, including company biographies, recent developments, and significant market strategies. It shows how the competitors are taking advantage of the opportunities present in the optical communication and networking equipment market.
| Attributes | Details |
|---|---|
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Forecast Period |
2022-2032 |
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Historical Data Available For |
2015-2021 |
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Market Analysis |
USD Mn for Value |
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Key Countries Covered |
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By Market Segments |
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Key Companies Profiled |
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Pricing |
Available Upon Request |
Optical Communication and Networking Equipment by Component
Optical Communication and Networking Equipment by Technology
Optical Communication and Networking Equipment by Vertical
Optical Communication and Networking Equipment by Data Rate
Optical Communication and Networking Equipment by Application
Optical Communication and Networking Equipment by Region
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Optical Communication and Networking Equipment Market is projected to have a CAGR of 7.3% in 2032.
The U.S is the leading country, with an anticipated market share of US$ 15.6 Billion by 2032.
On the basis of Component, the Optical Fibers category leads the market with the projected CAGR of 6.8% by 2032.
The Optical Communication and Networking Equipment Market is predicted to grow US$ 44.5 Billion by 2032.
On the basis of Technology, the WDM category leads the market with the projected CAGR of 6.7% in 2032.
