Optical Communication and Networking Equipment Market Analysis | 2023-2028

“The Optical Communication and Networking Equipment Market was estimated at USD 24.44 billion in 2022 and is expected to grow at a CAGR of 8.63% during 2023-2028 to reach USD 40.18 billion in 2028".

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Market Dynamics

Introduction

Optical communication and networking equipment is a device that is used to convert the signal into the coded form of light pulse to transmit information in several types of telecommunication networks. It is used in a range of Wide Area Networks (WAN) and Local Area Networks (LAN) to form networks at national, international, and interoceanic distances. This type of mechanism depends on the optical amplifier, Lasers, LEDs, and WDM to transfer data by optical fiber.

The new research study analyzes industry trends, pricing, patents, conference and webinar materials, key stakeholders, and buying behavior in the Optical Communication and Networking Equipment market.

Market Drivers

The increasing usage of cloud-based services and virtualization is a major driver of the optical communication and networking equipment market. This is because cloud-based services and virtualization require high-speed and reliable networks to support them.

• Cloud-based storage: Cloud-based storage services such as Google Drive, Dropbox, and iCloud allow users to store their files in the cloud and access them from anywhere. Cloud-based storage services require a lot of bandwidth to upload and download files.
• Cloud-based software: Cloud-based software applications such as Salesforce, Microsoft Office 365, and Google Workspace are becoming increasingly popular. Cloud-based software applications require a lot of bandwidth to access and use.
• Virtualization: Virtualization is being used in a variety of industries, such as data centers, enterprise networks, and cloud computing. Virtualization requires a lot of bandwidth to support the transmission of data between virtual machines.
• Growing adoption of data centers: Data centers increasingly use optical networks to support their high-bandwidth needs. This trend is expected to continue in the coming years, driving the growth of the optical communication and networking equipment market.
• Deployment of 5G networks: 5G networks require high-speed optical networks to support their massive bandwidth and low latency requirements. The deployment of 5G networks is expected to boost the demand for optical communication and networking equipment.

Segments Analysis

By Technology Type

“The WDM segment held the largest market share in 2019, while the fiber channel segment is projected to experience the highest growth during the forecast period.”

The market is segmented as SDH, WDM, CWDM, DWDM, and fiber channel. The WDM segment held the largest share of the market in 2019, whereas the fiber channel segment is expected to show the highest growth during the forecast period. Huge investments by the key manufacturers to build WDM ROADM-based optical equipment to provide faster and higher transmission capacity networks to their customers are the major factors behind the dominance of the WDM segment.

By Data Rate Type

“Optical communication and networking devices up to 40 Gbps are expected to dominate the market during the forecast period”.

The market is segmented as up to 40 Gbps, more than 40 Gbps to 100 Gbps, and more than 100 Gbps. Optical communication and networking devices with a data rate of up to 40 Gbps are employed to provide data security in internet service providers (ISPs), data center interconnects (DCI), and enterprise networks and are expected to dominate the market during the forecast period. They also provide large multipoint multiprotocol label switching (MPLS), metro ethernet, and storage networks, which are driving the growth of the segment.

Regional Analysis

“Asia-Pacific is expected to maintain its position as the largest market during the forecast period”.

The market is broken down geographically into areas, namely North America, Europe, Asia-Pacific, and the Rest of the World (RoW). Asia-Pacific is estimated to be the largest market during the forecast period, with China, Japan, South Korea, and India being the major countries with lucrative growth opportunities. The region is the major hub of consumer electronics, automobiles, and industrial verticals.

Rising connectivity solutions from 3G to 4G technology, increasing spending for the development of 5G mobile technologies, increasing smartphone adoption, growing internet users, and increasing bandwidth-intensive applications are the major growth drivers of the region’s market. Increasing investments in R&D activities, and the 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.

Key Players

The following are the key players in the Optical Communication and Networking Equipment Market (arranged alphabetically)

• ADVA Optical Networking SE
• Adtran, Inc.
• Ciena Corporation
• Cisco Systems, Inc.
• Finisar Corporation
• Fujitsu LTD
• Huawei Technologies Co., Ltd
• Infinera Corporation
• Nokia Corporation
• ZTE Corporation

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Write to us at sales@stratviewresearch.com

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.

We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

Customization Options

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Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

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