Global Optical Encryption Market 2018-2023: Growing Concern Over Data Security and Privacy Due to Cyberattacks Driving Growth
DUBLIN, June 25, 2018 /PRNewswire/ --
The "Optical Encryption Market by Encryption Layer (OTN or Layer1, MACsec or Layer 2, & IPsec or Layer 3), Data Rate (10G, 40G, 100G), Vertical (BFSI, Government, Healthcare, Data Centre & Cloud, Energy & Utilities) & Geography - Global Forecast to 2023" report has been added to ResearchAndMarkets.com's offering.
The optical encryption market is expected to grow from USD 2.77 billion in 2018 to USD 4.24 billion by 2023, at a CAGR of 8.9% between 2018 and 2023. The growth of this market is driven by emerging requirement of regulatory compliances, growing concern over data security and privacy due to cyberattacks, and rising data center deployments.
Layer 3 encryption accounted for the largest share of the optical encryption market in 2017. Layer 3 encryption is widely used and accepted for internet-based virtual private networks (VPNs). Many large-scale IPsec deployments are currently in operation across enterprise and government networks. It provides seamless security to application and transport layers and can be applied to networks of all sizes from local area network (LAN) to wide area network (WAN). The market for Layer 1 is expected to grow at the highest CAGR during the forecast period. The reason for this growth is the advantages such as reduced cost, lower latency, high bandwidth efficiency, improved performance, and high availability, offered by Layer 1 encryption.
The greater than 10G and less than 40G data rate segment accounted for the largest share of the optical encryption market in 2017. This can be attributed to the large-scale adoption of the optical encryption in different verticals such as BFSI, government, healthcare, and energy and utilities where the average data rate transfer is in the range of 10G and 40G. The market for greater than 100G optical encryption is expected to grow at the highest CAGR during the forecast period. This growth can be attributed to the requirement for encryption rates to align at speeds beyond 100G for any packet size so as to meet the demand for increased bandwidth driven by cloud services, mobile devices, and massive increases in video traffic.
The banking, financial services, and insurance (BFSI) vertical accounted for the largest share of the optical encryption market in 2017. The optical encryption is being increasingly deployed by the BFSI sector to protect their customers, meet government and industry data security compliance standards, facilitate security auditing, and avoid reputation damage caused by data breaches. The optical encryption market for the data center and cloud vertical is expected to grow at the highest CAGR during the forecast period. Data centers play a crucial role in delivering IT services and providing storage, communications, and networking to a growing number of networked devices, users, and business processes in general. The growing importance of data analytics has boosted the value and growth of data centers.
The Americas accounted for the largest share of the optical encryption market in 2017. The high adoption of cloud-based applications in the Americas has led to a dramatic increase in the number of cyberattacks, which are also becoming more sophisticated. The optical encryption market in APAC is expected to grow at the highest CAGR between 2018 and 2023 owing to the extension of the network in China, Thailand, Malaysia, South Korea, India, and other developing countries in APAC. APAC is the largest producer as well as consumer of smartphones, laptops, televisions (TVs), and various other data-generating devices across the world.
Key Topics Covered:
1 Introduction
2 Research Methodology
3 Executive Summary
4 Premium Insights
4.1 Attractive Opportunities in the Optical Encryption Market
4.2 Optical Encryption Market, By Encryption Layer
4.3 Optical Encryption Market, By Data Rate
4.4 Optical Encryption Market in APAC, By Vertical and Country
4.5 Country-Wise Analysis of Optical Encryption Market
4.6 Optical Encryption Market, By Region
5 Market Overview
5.1 Introduction
5.2 Market Dynamics
5.2.1 Drivers
5.2.1.1 Emerging Requirements for Regulatory Compliances
5.2.1.2 Growing Concern Over Data Security and Privacy Due to Cyberattacks
5.2.1.3 Increasing Internet Penetration and Data Traffic
5.2.1.4 Rising Data Center Deployments
5.2.2 Restraints
5.2.2.1 Increasing Network Complexity
5.2.3 Opportunities
5.2.3.1 Increasing Adoption of Cloud-Based Services and Iot
5.2.3.2 Growing Implementation of Network in Developing Countries
5.2.4 Challenges
5.2.4.1 Varying Government Policies for Data Protection Across Different Regions
5.3 Value Chain Analysis
6 Optical Encryption Market, By Encryption Layer
6.1 Introduction
6.2 Layer 1
6.3 Layer 2
6.4 Layer 3
7 Optical Encryption Market, By Data Rate
7.1 Introduction
7.2 Less Than 10g
7.3 Greater Than 10g and Less Than 40g
7.4 Greater Than 40g and Less Than 100g
7.5 Greater Than 100g
8 Optical Encryption Market, By Vertical
8.1 Introduction
8.2 BFSI
8.3 Government
8.4 Healthcare
8.5 Data Center and Cloud
8.6 Energy and Utilities
8.7 Others
9 Optical Encryption Market, By Geography
10 Competitive Landscape
10.1 Overview
10.2 Market Ranking Analysis
10.3 Competitive Scenario
10.3.1 Contracts
10.3.2 Product Launches
10.3.3 Acquisitions and Partnerships
11 Company Profiles
11.1 Introduction
11.2 Key Players
11.2.1 Ciena
11.2.2 Adva
11.2.3 Nokia
11.2.4 ECI Telecom
11.2.5 Cisco
11.2.6 Huawei
11.2.7 Microsemi
11.2.8 Infinera
11.2.9 Arista Networks
11.2.10 Acacia Communications
11.3 Other Key Players
11.3.1 Broadcom
11.3.2 Juniper Networks
11.3.3 Packetlight Networks
11.3.4 Thales E-Security
11.3.5 Centurylink
11.4 Key Innovators
11.4.1 Windstream Holdings
11.4.2 Nucrypt
11.4.3 SSE Enterprise Telecoms
11.4.4 Coriant
11.4.5 Smartoptics
For more information about this report visit https://www.researchandmarkets.com/research/kwdmmx/global_optical?w=5
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