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Optical Communication And Networking Market

Optical Communication and Networking Market Forecasts to 2028 – Global Analysis By Component (Hardware, Services), Network Connectivity (Upto 40G, Greater than 40G and Less than 100G), Application (Cable/Broadcasting, Data Center) and By Geography

4.9 (47 reviews)
Published: April 2022 ID: SMRC19372
4.9 (47 reviews)
Published: April 2022 ID: SMRC19372

This report covers the impact of COVID-19 on this global market

According to Stratistics MRC, the Global Optical Communication and Networking Market is accounted for $21.91 billion in 2021 and is expected to reach $46.66 billion by 2028 growing at a CAGR of 11.4% during the forecast period. Optical communication is a type of communication which uses light for the transmission of the signal to the remote end, instead of electrical current. Optical networking is a means of communication that makes use of signals encoded onto light to broadcast information among various nodes of a telecommunications network.

Market Dynamics:

Driver:

Rising Demand in IT and Telecom Sector


The growing demand for cloud data centers across the countries is one of the major factors driving the market growth. The telecom sector massively adopts the optical fiber owing to increasing cellular internet penetration to handle the load on telecom providers. The growing BYOD trend across IT companies is supporting the demand for optical communication and networking components. The optical communication and networking market is widely used in the telecommunication sector. The increasing acceptance of optical fiber networks across data centers for managing massive data traffic is driving market progression across the IT & telecom sectors. One of the major reasons for the boost in the market of optical communication and networking in the telecommunication sector is the ongoing demands by telecom industries such as large quantities of data transmission, high bandwidth, quick transmission, and others. These demands boost the developments of optical networking market players so that they can provide additional features such as low capital and operational costs.

Restraint:

High Installation cost


The high installation cost of optical fiber cables is one of the major restraints faced by the market globally. Upsurges in end users' demand and machine-to-machine network traffic are creating big challenges for optical communications to continue working at a large scale cost-effectively. Meeting those demands of the end-users requires new technological advancements to form an optical networking system working parallel with the current technology at an affordable installation cost. An ongoing demand to achieve a goal of Next-Generation Network (NGN) needs high installation costs.

Opportunity:

Increase in Industrialization and Technology Innovation


Fast-growing economies in countries are contributing considerably to the optical communication and networking market. An increase in automation in these economies tends to elevate the network traffic which is predictable to grow exponentially in the forecast period. With the developing technology advancements, such as cloud services, video streaming, 4G/5G mobile technologies, and the Internet of Things, the pressure on the core network is multiplied. With recent advancements, such as silicon photonic integration and spatial-division multiplexing (SDM), optical communications and networking technologies demonstrated great success in supporting the growth of data center networks. Furthermore, the implementation of software-defined networking (SDN) is making optical communication networks comprising both fiber optic systems and optical wireless systems more agile, programmable, and offers flexible service solutions. These developments enhance the growth and create ample opportunities for the Market.

Threat:

Increased Network Complexity

The rapid adoption of digital transformation (DX) makes both network and security more complex. The increased complexity ratchets up vulnerabilities as a result. Many aspects of networking are continuously growing, the number of features, the length of routing table configurations, firewall configurations, etc. The entire system is growing which makes it difficult for network operators to understand and manage the entire network they are responsible for. Many operators only fully understand the parts of the network that they specialize in. Increasing complexity makes network behavior unpredictable, which is a bad thing in networking (and other systems). Look, for example, at filtering lists: the more complex the lists, rules, and exceptions, the more difficult it is to understand all the filtering rules. That makes it hard to predict the effects of changes.

Optical transceivers segment is expected to be the largest during the forecast period

The growth 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.

The data centre segment is expected to have the highest CAGR during the forecast period

The data center segment is estimated to witness the highest CAGR for the forecast period. The factors can be attributed to the increasing adoption of cloud computing as a mainstream deployment option and growing demand for high-speed internet by the users of smartphones and other connected devices along with a rapid increase in internet traffic in mega data centers. This has fostered the acceptance of the data center segment.

Region with highest share:

The Asia Pacific is projected to hold the highest market share, due to the rising acceptance of smartphones, a growing number of internet users, the rising demand for connectivity, growing focus on improving existing networks and establishing new connectivity networks, and increasing bandwidth-intensive applications, such as video-on-demand services, and availability of government funding will boost the market in APAC region. These are some of the few factors that drive the growth of the market in this province.

Region with highest CAGR:

North America is projected to have the highest CAGR, due to the upsurge in the number of internet users is enabling the rise of data traffic across the country. The growing data traffic is enabling the need for data storage services, making data centers upgrade their network infrastructure. The growing demand for IoT devices across the country is another factor supporting the industry growth. The leading data centers of Facebook, Google, and AWS located in the U.S. are making it the most lucrative market for optical communication and networking. The growing demand for the commercialization of the 5G network is also supporting regional growth. The government authorities in the U.S. are focusing on strategic initiatives for the early acceptance of 5G services.

Key players in the market:

Some of the key players profiled in the Optical Communication and Networking Market include ADTRAN, ADVA Optical Networking, Arista Networks, Broadcom, Calix, Ciena, Cisco, Coriant, Corning, ECI Telecom, Ericsson, Ribbon Communications Inc, Fujitsu Optical Components, Huawei Technologies Co, Juniper Networks, Lumentum Operations, Mitsubishi Electronics, NeoPhotonics, Nokia, Oclaro.

Key developments:

In April 2019: Cisco collaborated with PLDT, the Philippines’ premier digital service provider, to help transform PLDT’s IP transport infrastructure into a fully automated software-defined 5G-ready IP transport network.

In March 2020: Ribbon Communications Inc., a global software leader in secure and intelligent cloud communications, acquired ECI Telecom Group Ltd. (ECI), a global provider of end-to-end packet-optical transport and SDN/NFV solutions for service providers, enterprises, and data center operators.

In October 2020: Fujitsu Optical Components Limited (FOC) launched a 400G ZR + transceiver that enable coherent WDM transmission greater than 120km in the same form factors (QSFP56-DD and OSFP) as its 400G ZR transceiver. Both transceivers use advanced coherent technology to enable higher bandwidth capacity and lower cost per bit compared to existing 100G WDM technology.

Components Covered: 
• Hardware
• Software
• Services 

Network Connectivity’s Covered:
• Upto 40G    
• Greater than 40G and Less than 100G 
• Greater than 100G 

Technology’s Covered:
• Fiber Channels   
• Synchronous Digital Hierarchy (SDH) or Synchronous Optical Networking (SONET)
• Wavelength Division Multiplexing (WDM)
   
Applications Covered:
• Cable/Broadcasting   
• Data Center 
• Enterprise   
• Telecom
   
End Users Covered:
• Commercial   
• Industrial    
• Government   

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan       
o China       
o India       
o Australia 
o New Zealand
o South Korea
o Rest of Asia Pacific   
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

1 Executive Summary    
     
2 Preface    

 2.1 Abstract   
 2.2 Stake Holders   
 2.3 Research Scope   
 2.4 Research Methodology   
  2.4.1 Data Mining  
  2.4.2 Data Analysis  
  2.4.3 Data Validation  
  2.4.4 Research Approach  
 2.5 Research Sources   
  2.5.1 Primary Research Sources  
  2.5.2 Secondary Research Sources  
  2.5.3 Assumptions  
     
3 Market Trend Analysis    
 3.1 Introduction   
 3.2 Drivers   
 3.3 Restraints   
 3.4 Opportunities   
 3.5 Threats   
 3.6 Technology Analysis   
 3.7 Application Analysis    
 3.8 End User Analysis   
 3.9 Emerging Markets   
 3.10 Impact of Covid-19   
     
4 Porters Five Force Analysis    
 4.1 Bargaining power of suppliers   
 4.2 Bargaining power of buyers   
 4.3 Threat of substitutes   
 4.4 Threat of new entrants   
 4.5 Competitive rivalry   
     
5 Global Optical Communication and Networking Market, By Component    
 5.1 Introduction   
 5.2 Hardware        
  5.2.1 Optical Switches     
   5.2.1.1 Electro-optical Switch  
   5.2.1.2 All-optical Switch   
  5.2.2 Optical Fibers     
   5.2.2.1 Multimode Fiber   
   5.2.2.2 Single-mode Fiber   
  5.2.3 Optical Circulators     
  5.2.4 Optical Amplifiers     
   5.2.4.1 Semiconductor Optical Amplifiers 
   5.2.4.2 Erbium-doped Fiber Amplifiers   
   5.2.4.3 Fiber Raman Amplifiers  
  5.2.5 Optical Splitters     
  5.2.6 Optical Transceivers     
   5.2.6.1 SFP+ & SFP28   
   5.2.6.2 SFF & SFP    
   5.2.6.3 QSFP, QSFP+, QSFP14, and QSFP28 
   5.2.6.4 CFP, CFP2, and CFP4   
   5.2.6.5 CXP     
   5.2.6.6 XFP    
  5.2.7 Optical Sensors     
  5.2.8 Other Hardwares     
   5.2.8.1 Optical Aggregators   
   5.2.8.2 Optical Filters   
 5.3 Software        
 5.4 Services   
     
6 Global Optical Communication and Networking Market, By Network Connectivity    
 6.1 Introduction   
 6.2 Access        
 6.3 Long-Haul       
 6.4 Metro        
     
7 Global Optical Communication and Networking Market, By Data rate    
 7.1 Introduction   
 7.2 Upto 40G        
 7.3 Greater than 40G and Less than 100G     
 7.4 Greater than 100G   
     
8 Global Optical Communication and Networking Market, By Technology    
 8.1 Introduction   
 8.2 Fiber Channels       
 8.3 Synchronous Digital Hierarchy (SDH) or Synchronous Optical Networking (SONET)   
 8.4 Wavelength Division Multiplexing (WDM)     
  8.4.1 Coarse Wavelength Division Multiplexing (CWDM)  
  8.4.2 Dense Wavelength Division Multiplexing (DWDM)  
     
9 Global Optical Communication and Networking Market, By Application     
 9.1 Introduction   
 9.2 Cable/Broadcasting       
 9.3 Data Center     
 9.4 Enterprise       
 9.5 Telecom        
     
10 Global Optical Communication and Networking Market, By End User    
 10.1 Introduction   
 10.2 Commercial       
 10.3 Industrial        
 10.4 Government       
     
11 Global Optical Communication and Networking Market, By Geography    
 11.1 Introduction   
 11.2 North America   
  11.2.1 US  
  11.2.2 Canada  
  11.2.3 Mexico  
 11.3 Europe   
  11.3.1 Germany  
  11.3.2 UK  
  11.3.3 Italy  
  11.3.4 France  
  11.3.5 Spain  
  11.3.6 Rest of Europe  
 11.4 Asia Pacific   
  11.4.1 Japan  
  11.4.2 China  
  11.4.3 India  
  11.4.4 Australia  
  11.4.5 New Zealand  
  11.4.6 South Korea  
  11.4.7 Rest of Asia Pacific  
 11.5 South America   
  11.5.1 Argentina  
  11.5.2 Brazil  
  11.5.3 Chile  
  11.5.4 Rest of South America  
 11.6 Middle East & Africa   
  11.6.1 Saudi Arabia  
  11.6.2 UAE  
  11.6.3 Qatar  
  11.6.4 South Africa  
  11.6.5 Rest of Middle East & Africa  
     
12 Key Developments    
 12.1 Agreements, Partnerships, Collaborations and Joint Ventures   
 12.2 Acquisitions & Mergers   
 12.3 New Product Launch   
 12.4 Expansions   
 12.5 Other Key Strategies   
     
13 Company Profiling    
 13.1 ADTRAN        
 13.2 ADVA Optical Networking      
 13.3 Arista Networks   
 13.4 Broadcom       
 13.5 Calix        
 13.6 Ciena        
 13.7 Cisco        
 13.8 Coriant        
 13.9 Corning         
 13.10 ECI Telecom       
 13.11 Ericsson        
 13.12 Ribbon Communications Inc.   
 13.13 Fujitsu Optical Components      
 13.14 Huawei Technologies Co      
 13.15 Juniper Networks       
 13.16 Lumentum Operations      
 13.17 Mitsubishi Electronics      
 13.18 NeoPhotonics       
 13.19 Nokia        
 13.20 Oclaro        


List of Tables     
1 Global Optical Communication and Networking Market Outlook, By Region (2020-2028) (US $MN)     
2 Global Optical Communication and Networking Market Outlook, By Component (2020-2028) (US $MN)     
3 Global Optical Communication and Networking Market Outlook, By Hardware (2020-2028) (US $MN)     
4 Global Optical Communication and Networking Market Outlook, By Optical Switches (2020-2028) (US $MN)     
5 Global Optical Communication and Networking Market Outlook, By Optical Fibers (2020-2028) (US $MN)     
6 Global Optical Communication and Networking Market Outlook, By Optical Circulators (2020-2028) (US $MN)     
7 Global Optical Communication and Networking Market Outlook, By Optical Amplifiers (2020-2028) (US $MN)     
8 Global Optical Communication and Networking Market Outlook, By Optical Splitters (2020-2028) (US $MN)     
9 Global Optical Communication and Networking Market Outlook, By Optical Transceivers (2020-2028) (US $MN)     
10 Global Optical Communication and Networking Market Outlook, By Optical Sensors (2020-2028) (US $MN)     
11 Global Optical Communication and Networking Market Outlook, By Other Hardwares (2020-2028) (US $MN)     
12 Global Optical Communication and Networking Market Outlook, By Software (2020-2028) (US $MN)     
13 Global Optical Communication and Networking Market Outlook, By Services (2020-2028) (US $MN)     
14 Global Optical Communication and Networking Market Outlook, By Network Connectivity (2020-2028) (US $MN)     
15 Global Optical Communication and Networking Market Outlook, By Access (2020-2028) (US $MN)     
16 Global Optical Communication and Networking Market Outlook, By Long-Haul (2020-2028) (US $MN)     
17 Global Optical Communication and Networking Market Outlook, By Metro (2020-2028) (US $MN)     
18 Global Optical Communication and Networking Market Outlook, By Data Rate (2020-2028) (US $MN)    
19 Global Optical Communication and Networking Market Outlook, By Upto 40G (2020-2028) (US $MN)    
20 Global Optical Communication and Networking Market Outlook, By Greater than 40G and Less than 100G   (2020-2028) (US $MN)    
21 Global Optical Communication and Networking Market Outlook, By Greater than 100G (2020-2028) (US $MN)    
22 Global Optical Communication and Networking Market Outlook, By Technology (2020-2028) (US $MN)     
23 Global Optical Communication and Networking Market Outlook, By Fiber Channels (2020-2028) (US $MN)     
24 Global Optical Communication and Networking Market Outlook, By Synchronous Digital Hierarchy (SDH) or Synchronous Optical Networking (SONET) (2020-2028) (US $MN)     
25 Global Optical Communication and Networking Market Outlook, By Wavelength Division Multiplexing (WDM) (2020-2028) (US $MN)     
26 Global Optical Communication and Networking Market Outlook, By Coarse Wavelength Division Multiplexing (CWDM) (2020-2028) (US $MN)     
27 Global Optical Communication and Networking Market Outlook, By Dense Wavelength Division Multiplexing (DWDM) (2020-2028) (US $MN)     
28 Global Optical Communication and Networking Market Outlook, By Application (2020-2028) (US $MN)     
29 Global Optical Communication and Networking Market Outlook, By Cable/Broadcastingm (2020-2028) (US $MN)     
30 Global Optical Communication and Networking Market Outlook, By Data Center   (2020-2028) (US $MN)     
31 Global Optical Communication and Networking Market Outlook, By Enterprise (2020-2028) (US $MN)      
32 Global Optical Communication and Networking Market Outlook, By Telecom (2020-2028) (US $MN)     
33 Global Optical Communication and Networking Market Outlook, By End User (2020-2028) (US $MN)     
34 Global Optical Communication and Networking Market Outlook, By Commercial (2020-2028) (US $MN)     
35 Global Optical Communication and Networking Market Outlook, By Industrial (2020-2028) (US $MN)     
36 Global Optical Communication and Networking Market Outlook, By Government (2020-2028) (US $MN)      
     
Note- Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.    

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