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    Optical Communication and Networking Equipment Market | 2023-2028

    Optical Communication and Networking Equipment Market | 2023-2028
    Report code - SRCG213 Delivery - 2 Weeks
    Optical Communication and Networking Equipment Market Size, Share, Trend, Forecast, Growth See more...

    Market Insights

    The Global Optical Communication and Networking Equipment Market is estimated to grow from USD 24.44 Billion in 2022 to USD 40.18 Billion by 2028 at a healthy CAGR of 8.63% during the forecast period of 2023-2028.

    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.

    Optical Communication and Networking Equipment Market (2022-2028)

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    What is the optical communication and networking equipment?

    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.

    Global Optical Communication and Networking Equipment Market Highlights

    Market Size in 2022

    US$ 24.44 Billion

    Market Size in 2028

    US$ 40.18 Billion

    Market Growth by 2023-2028

    CAGR of 8.63%

    Base Year of Study

    2022

    Trend Period

    2017-2021

    Forecast Period

    2023-2028

    Dominant Region

    Asia-Pacific is estimated to be the largest market during the forecast period.

    Key Players

    Some of the key players in the global market are-

    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 are increasingly using 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.

    Optical Communication and Networking Equipment Market Snapshot

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    Segments' Analysis

    By Technology Type

    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 is the major factor behind the dominance of the WDM segment.

    By Data Rate Type

    The optical communication and networking equipment 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. They also provide large multipoint multiprotocol label switching (MPLS), metro ethernet, and storage networks, which are driving the growth of the segment.

    By Region

    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

    Optical Communication and Networking Equipment Market by Region

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    Segmentation

    This report studies the market covering 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

    The global optical communication and networking equipment market is segmented into the following categories.

    By Component Type

    • Fiber (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • Transceiver (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • Switch (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • Others (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

    By Technology Type

    • SDH (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • WDM (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • CWDM (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • DWDM (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • Fiber Channel (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

    By Application Type

    • Telecom (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • Data Center (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • Enterprise (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

    By Data Rate Type

    • Up to 40 Gbps (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • More Than 40 Gbps to 100 Gbps (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • More Than 100 Gbps (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

    By Vertical Type

    • BFSI (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • Government (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • Healthcare (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • Cloud (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • Energy & Utilities (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
    • Others (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)

    By Region

    • North America (Country Analysis: the USA, Canada, and Mexico) 
    • Europe (Country Analysis: Germany, France, the UK, Russia, and Rest of Europe)
    • Asia-Pacific (Country Analysis: China, Japan, South Korea, India, and Rest of Asia-Pacific
    • Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

    Report Features

    This report provides market intelligence most comprehensively. 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

    Key questions this report answers

    Relevant contents in the report

    How big is the sales opportunity?

    In-depth analysis of the optical communication and networking equipment market.

    How lucrative is the future?

    The market forecast and trend data and emerging trends.

    Which regions offer the best sales opportunities?

    Global, regional, and country-level historical data and forecasts.

    Which are the most attractive market segments?

    Market Segment Analysis and Forecast.

    What are the top players and their market positioning?

    Competitive landscape analysis, Market share analysis.

    How complex is the business environment?

    Porter’s five forces analysis, PEST analysis, and Life cycle analysis.

    What are the factors affecting the market?

    Drivers & challenges.

    Will I get the information on my specific requirements?

    10% free customization.

    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 10 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.

    Target Audience

    The following is a list of the customers that the market aims to convert the most:

    • Manufacturers
    • Suppliers
    • Distributors
    • Organizations
    • Government bodies

    Critical Questions Answered in the Report

    • What are the key trends in the market?
    • How has the market (and its various sub-segments) grown in the last five years and what would be the growth rate in the next five years?
    • What is the impact of COVID-19 on the market?
    • What are the key strategies adopted by the major vendors to lead in the market?
    • What is the market share of the top vendors?

    Report Customization Options

    With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

    Company Profiling

    • Detailed profiling of additional market players (up to 3 players)
    • SWOT analysis of key players (up to 3 players)

    Competitive Benchmarking

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

    Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.

    Frequently Asked Questions (FAQs)

    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 global optical communication and networking equipment market is expected to reach USD 40.18 Bn in 2028 from USD 24.44 Bn in 2022.

    Asia-Pacific is estimated to be the largest market during the forecast period.

    The market is expected to grow at a CAGR of 8.63% during the forecast period.

    Some of the key players in the optical communication and networking equipment market are- Huawei Technologies Co., Ltd., Cisco Systems, Inc., Ciena Corporation, Nokia Corporation, Finisar Corporation, ZTE Corporation, Adtran, Inc., Infinera Corporation, ADVA Optical Networking SE, and Fujitsu LTD.

    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. 1. 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. 2. 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. 3. 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. 4. Growing adoption of data centers: Data centers are increasingly using 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. 5. 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.