Outlook into the Global Optical Communication and Networking Equipment Market to 2025 - Expansion of Networks in Developing Countries Presents Opportunities

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Mar 09, 2020, 10:15 ET

DUBLIN, March 9, 2020 /PRNewswire/ -- The "Optical Communication and Networking Equipment Market by Component (Fiber, Transceiver, and Switch), Technology, Application (Telecom, Data Center, and Enterprise), Data Rate, Vertical, and Region - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.

The global optical communication and networking equipment market size was valued at USD 18.9 billion in 2020 and is projected to reach USD 27.8 billion by 2025; it is growing at a CAGR of 8.0% from 2020 to 2025.

Rising adoption of cloud-based services and virtualization services all over the world, increasing data traffic in tandem with internet usage, and the growing number of data centers are the factors driving the optical communication and networking equipment industry growth.

Optical communication and networking equipment market for fiber channel technology estimated to grow at highest CAGR

The market for fiber channel technology-based optical communication and networking equipment is expected to grow at the highest CAGR during the forecast period. In enterprise data centers, high-speed fiber channel networking technology is used widely to transport data from storage systems. It ensures that all storage data arrives at its network destination without loss at extreme throughput and low latency while operating at high utilization rates without data collisions or the need for retransmission.

Optical communication and networking equipment market for up to 40 Gbps to hold the largest share of the market

Optical communication and networking equipment up to 40 Gbps is expected to hold the largest market share. Optical networking devices operating up to 40 Gbps provide large multipoint multiprotocol label switching (MPLS), metro Ethernet, and storage networks. Optical communication and networking devices with a data rate of up to 40 Gbps are designed for providing data security in data center interconnect (DCI), as well as for internet service providers (ISPs) and enterprise networks.

Optical communication and networking equipment market for BFSI vertical to hold the largest share of the market

The BFSI vertical accounted for the largest share of the optical communication and networking equipment market in 2019. Optical communication and networking devices are being increasingly deployed in the BFSI sector to protect their customers' confidential data, meet compliance standards to ensure data security, facilitate security auditing, and avoid reputation damage caused by data breaches.

Key Topics Covered:

1 Introduction

2 Research Methodology

3 Executive Summary

4 Premium Insights
4.1 Attractive Opportunities in Optical Communication and Networking Equipment Market
4.2 Optical Communication & Networking Equipment Market, By Application
4.3 Optical Communication & Networking Equipment Market in APAC, By Country and Component
4.4 Optical Communication & Networking Equipment Market, By Technology
4.5 Country-Wise Analysis of Optical Communication and Networking Market

5 Market Overview
5.1 Introduction
5.2 Market Dynamics
5.2.1 Drivers
5.2.1.1 Rising Adoption of Cloud-Based and Virtualization Services Globally
5.2.1.2 Growing Number of Data Centers
5.2.2 Restraints
5.2.2.1 High Initial Investment
5.2.2.2 Increased Network Complexity
5.2.3 Opportunities
5.2.3.1 Deployment of VoIP, LTE, and 5G Networks
5.2.3.2 Expansion of Networks in Developing Countries
5.2.3.3 Adoption of IoT
5.2.4 Challenges
5.2.4.1 Vulnerability of Optical Networks to Hacking
5.2.4.2 Susceptibility of Optical Fibers to Physical Damage and Transmission Losses
5.3 Value Chain Analysis

6 Optical Communication and Networking Equipment Market, By Component
6.1 Introduction
6.2 Optical Fibers
6.2.1 Single-Mode Fibers
6.2.1.1 Single-Mode Fibers are Used for Long-Distance and High-Bandwidth Applications
6.2.2 Multi-Mode Fibers
6.2.2.1 Multi-Mode Fibers are Used for Building Applications
6.3 Optical Transceivers
6.3.1 SFF and SFP
6.3.1.1 SFF and SFP Form Factors are Known for Manufacturing Interconnects for Telecom and Datacom Sectors
6.3.2 SFP+ and SFP28
6.3.2.1 Market for SFP+ and SFP28 Form Factors to Grow at Highest CAGR During Forecast Period
6.3.3 QSFP, QSFP+, QSFP14, and QSFP28
6.3.3.1 QSFP, QSFP+, QSFP14, and QSFP28 Form Factors to Hold Large Market Share
6.3.4 CFP, CFP2, and CFP4
6.3.4.1 CFP, CFP2, and CFP4 to Experience Rapid Growth During the Forecast Period
6.3.5 XFP
6.3.5.1 XFP Form Factor Designed Mostly in Synchronous Optical Networking (Sonet)
6.3.6 CXP
6.3.6.1 CXP Form Factor Adopted for High-Density Signal Transmission in Industrial Applications
6.4 Optical Amplifiers
6.4.1 Erbium-Doped Fiber Amplifiers
6.4.1.1 Erbium-Doped Amplifiers are Extensively Used in Optical Communication Networks
6.4.2 Fiber Raman Amplifiers
6.4.2.1 Fiber Raman Amplifiers are Deployed at Long-Haul and Ultra-Long-Haul Transmission Systems
6.4.3 Semiconductor Optical Amplifiers
6.4.3.1 Semiconductor Optical Amplifiers Amplify Optical Signals at Varying Wavelengths
6.5 Optical Switches
6.5.1 Optical Switches Allow Photonic Signals to Be Managed and Switched Without Converting Them Into Electronic Signals
6.6 Optical Splitters
6.6.1 Optical Splitters Integral Component of Passive Optical Networks
6.7 Optical Circulators
6.7.1 Optical Circulators are Used to Direct Optical Signals From One Port to Another
6.8 Others

7 Optical Communication and Networking Equipment Market, By Technology
7.1 Introduction
7.2 Sonet/SDH
7.2.1 Sonet/SDH are Widely Adopted Transmission Technologies By Telecom Carriers
7.3 WDM
7.3.1 WDM Technology to Continue to Hold Largest Market Share During Forecast Period
7.4 CWDM
7.4.1 CWDM Technology Can Efficiently Transport Large Volumes of Data in Telecom Or Enterprise Networks
7.5 DWDM
7.5.1 DWDM-Based Networks Can Carry Different Types of Traffic at Different Speeds Over Optical Channel
7.6 Fiber Channel
7.6.1 Market for Fiber Channel Technology to Grow at Highest CAGR During Forecast Period

8 Optical Communication and Networking Equipment Market, By Application
8.1 Introduction
8.2 Telecom
8.2.1 Requirement for High-Speed Data Transmission to Drive Demand for Networking Equipment in Telecom Applications
8.3 Data Center
8.3.1 Rise in Network Traffic and Cloud Computing Services to Accelerate Demand for Networking Equipment in Data Center Applications
8.4 Enterprise
8.4.1 Growing Demand for Enterprise-Based Solutions Boostgrowth of Market for Networking Equipment

9 Optical Communication and Networking Equipment Market, By Data Rate
9.1 Introduction
9.2 Up to 40 Gbps
9.2.1 Data Center Interconnect, Internet Service Providers, and Enterprise Networks to Drive Demand for Optical Networking Devices With Data Rate of Up to 40 Gbps
9.3 Greater Than 40 Gbps to 100 Gbps
9.3.1 Data Centers, and Government and Financial Institutions to Drive Demand for Optical Networking Devices With Data Rate of Greater Than 40 Gbps to 100 Gbps
9.4 Greater Than 100 Gbps
9.4.1 Cloud Computing, Metro, and Long-Haul Network Applications to Fuel Demand for Optical Networking Devices With Data Rate of Greater Than 100 Gbps

10 Optical Communication and Networking Equipment Market, By Vertical
10.1 Introduction
10.2 BFSI
10.2.1 Increasing Demand for Digital Banking Services to Drive Demand for Optical Communication and Networking Equipment
10.3 Government
10.3.1 Increasing Investments in Networking Infrastructure Boost Demand for Optical Communication and Networking Equipment
10.4 Healthcare
10.4.1 Increasing Demand for Digital Healthcare Services to Propel Optical Communication & Networking Equipment Market Growth
10.5 Cloud
10.5.1 Increasing Demand for Cloud-Based Data Centres to Foster Growth of Optical Communication & Networking Equipment Market
10.6 Energy & Utilities
10.6.1 Rising Deployment of Smart Grids to Augment Optical Communication and Networking Market Growth
10.7 Others

11 Geographic Analysis
11.1 Introduction
11.2 Americas
11.2.1 US
11.2.1.1 Presence of Major Tech Companies to Drive Growth of Market in the US
11.2.2 Canada
11.2.2.1 Adoption of IoT-Based Platform to Drive Investments for Improvement of Network Infrastructure
11.2.3 Mexico
11.2.3.1 Penetration of Smartphones That Leads to Increase in Data Traffic to Fuel Market Growing in Coming Years
11.2.4 Brazil
11.2.4.1 Government Incentives and Presence of Start-Up Ecosystems to Drive Demand for Optical Networking Equipment
11.2.5 Rest of Americas
11.2.5.1 Use of Smartphones to Increase Demand for Optical Networking Equipment
11.3 Europe
11.3.1 Germany
11.3.1.1 Implementation of IoT, Especially in the Manufacturing and Automotive Industries, to Drive Demand for Optical Networking Equipment
11.3.2 France
11.3.2.1 Introduction of 5G Technology to Boost Growth of Optical Communication and Networking Equipment Market
11.3.3 UK
11.3.3.1 Government Initiatives on Industry 4.0 to Drive Demand for Optical Communication & Networking Equipment
11.3.4 Italy
11.3.4.1 Presence of Unique Subscribers to Ensure Growth of Optical Communication and Equipment Market
11.3.5 Rest of Europe
11.3.5.1 Inclination Toward High-Speed Internet Services to Boom Optical Communication & Networking Equipment Market Growth
11.4 Asia Pacific
11.4.1 China
11.4.1.1 Growing Adoption of Internet Plus Strategy to Drive Demand for Optical Communication and Networking Equipment
11.4.2 Japan
11.4.2.1 Increasing Demand for Cloud Technology to Boost Optical Communication and Networking Market Growth
11.4.3 South Korea
11.4.3.1 Increasing Demand for Computer Networking and Database Services to Propel Growth of Optical Communication & Networking Equipment Market
11.4.4 India
11.4.4.1 Surging Demand for Network Upgrading to Fuel Optical Communication & Networking Equipment Market Growth
11.4.5 Rest of APAC
11.4.5.1 Escalating Demand for High-Connectivity Data Transmission Services to Foster Growth of Optical Communication & Networking Equipment Market
11.5 Rest of the World
11.5.1 Middle East
11.5.1.1 Rising Investments Toward Datacenter Applications to Drive Demand for Optical Communication and Networking Equipment
11.5.2 Africa
11.5.2.1 Growing Number of Mobile Subscribers and Increasing Penetration of Telecom Services to Drive Optical Communication and Networking Market Growth

12 Competitive Landscape
12.1 Overview
12.2 Ranking Analysis of Market Players
12.3 Competitive Leadership Mapping
12.3.1 Visionary Leaders
12.3.2 Dynamic Differentiators
12.3.3 Innovators
12.3.4 Emerging Companies
12.4 Strength of Product Portfolio (For All 25 Players)
12.5 Business Strategy Excellence (For All 25 Players)
12.6 Competitive Scenario
12.6.1 Product Launches and Developments
12.6.2 Partnership, Collaboration, and Agreements
12.6.3 Mergers and Acquisitions
12.6.4 Contracts and Expansions

13 Company Profiles
13.1 Key Players
13.1.1 Huawei Technologies Company, LTD.
13.1.2 Cisco Systems, Inc.
13.1.3 Ciena Corp.
13.1.4 Nokia
13.1.5 Finisar Corp.
13.1.6 ZTE Corp.
13.1.7 Adtran, Inc.
13.1.8 Infinera Corp.
13.1.9 Adva Optical Networking
13.1.10 Fujitsu LTD.
13.2 Right to Win
13.3 Key Innovators
13.3.1 ECI Telecom
13.3.2 Calix, Inc.
13.3.3 Lumentum Holdings Inc.
13.3.4 Neophotonics Corp.
13.4 Other Key Players
13.4.1 Broadcom
13.4.2 NEC
13.4.3 Juniper Network, Inc.
13.4.4 Ericsson
13.4.5 Alcatel-Lucent Enterprise
13.4.6 Corning
13.4.7 Arista
13.4.8 TE Connectivity
13.4.9 Microchip
13.4.10 Padtec

14 Appendix

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