The Worldwide Optical Communication and Networking Equipment Industry is Expected to Reach $36.6 Billion by 2027

DUBLIN, June 9, 2022 /PRNewswire/ -- The "Optical Communication and Networking Equipment Market by Component (Fiber, Transceiver, and Switch), Technology (WDM, Fiber Channel), Application (Telecom, Data Center, and Enterprise), Data Rate, Vertical and Region (2022-2027)" report has been added to ResearchAndMarkets.com's offering.

The global optical communication and networking equipment market was estimated at USD 24.2 billion in 2022 and is projected to reach USD 36.6 billion by 2027, growing at a CAGR of 8.6% from 2022 to 2027. Growing adoption of data centers and the deployment of VOIP, LTE, and 5G networks are the major driving factors for the growth of the optical communication and networking equipment market.

Up to 40 Gbps: The fastest-growing segment of the optical communication and networking equipment market.

Optical communication and networking equipment with up to 40 Gbps data rate accounted for the largest market share of ~49% in 2021. As the network capacity increases, the element management system (EMS) requires higher reliability. The data rate of up to 40 Gbps provides reliable monitoring technology for large-capacity networks. Moreover, the market for optical communication and networking equipment with greater than 100 Gbps data rate is projected to grow with the highest CAGR of 9.8% during the forecast period. With the rapid development of 5G and high-performance services brought by cloud networks, the demand for higher bandwidth devices with a data rate of greater than 100 Gbps is expected to grow in the near future.

Data Center: The highest growing application in optical communication and networking market.

The data center application is expected to dominate the market throughout the forecast period. The application is also expected to grow at the highest CAGR during the forecast period. Data centers are used for commercial purposes of OTT platforms, which are in constant demand and are rapidly increasing. The rise in the number of OTT platforms (Netflix, HBO, Disney, and Amazon Prime) over the year are expected to propel the data center market in the future.

Cloud Segment: The fastest-growing vertical in optical communication and networking equipment market during the forecast period.

Could segment of the optical communication and networking equipment market is projected to grow at the highest CAGR during the forecast period. Cloud computing has become an essential part of the business landscape. In this regard, several companies are highly adopting complex computing solutions. The ever-growing clout of digital devices increases the demand for data storage space, transmission speed, and flexibility. These factors are fuelling the adoption of optical communication and networking equipment in cloud computing, which supports high-data transmission and offers high switching speed and large data storage.

The Americas: The largest region in the optical communication and networking equipment market in 2021.

The Americas accounted for the largest share of ~40% of the optical communication and networking equipment market in 2021. The Americas has emerged as a major data center and cloud computing hub. Thus, it is the largest consumer of optical communication and networking equipment market. Factors such as the robust presence of major companies in the region; high demand for data communication; increased use of communication devices, such as smartphones, tablets, and VoIP equipment; as well as the growing market for wearable devices and increasing deployment of data centers drive the growth of the optical communication and networking equipment market in this region. Further, high defence spending and the presence of numerous important market players in the US are the key factors supporting the expansion of the market in the region.

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 and Networking Equipment Market, by Application
4.3 Optical Communication and Networking Equipment Market in Asia-Pacific, by Country and Component
4.4 Optical Communication and Networking Equipment Market, by Technology
4.5 Country-Wise Analysis of Optical Communication and Networking Equipment Market

5 Market Overview
5.1 Introduction
5.2 Market Dynamics
5.2.1 Drivers
5.2.1.1 Rise in Demand for Compact and Energy-Efficient Transceivers
5.2.1.2 Rising Adoption of Cloud-Based and Virtualization Services Globally
5.2.1.3 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 Expansion of Telecom Infrastructure in Developing Economies
5.2.3.2 Deployment of Voip, Lte, and 5G Networks
5.2.3.3 Expansion of Networks in Developing Countries
5.2.3.4 Adoption of IoT
5.2.4 Challenges
5.2.4.1 Ever Changing Customer Demands for Portable Device and High Speed
5.2.4.2 Vulnerability of Optical Networks to Hacking
5.2.4.3 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 Fiber
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 Transceiver
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 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 Amplifier
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 in 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 Switch
6.5.1 Optical Switches Allow Photonic Signals to be Managed and Switched Without Converting Them into Electronic Signals
6.6 Optical Splitter
6.6.1 Optical Splitters Are Integral Component of Passive Optical Networks
6.7 Optical Circulator
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 and Sdh Are Widely Adopted Transmission Technologies by Telecom Carriers
7.3 Wdm
7.3.1 Wdm Technology to Dominate Optical Communication and Networking Equipment Market
7.3.2 Cwdm
7.3.3 Dwdm
7.4 Fiber Channel
7.4.1 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 Boost Growth 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 Rates 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 Rates 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 Boosts Demand for Optical Communication and Networking Equipment
10.4 Healthcare
10.4.1 Increasing Demand for Digital Healthcare Services to Propel Optical Communication and Networking Equipment Market Growth
10.5 Cloud
10.5.1 Increasing Demand for Cloud-Based Data Centres to Foster Market Growth
10.6 Energy & Utilities
10.6.1 Rising Deployment of Smart Grids to Augment Optical Communication and Networking Equipment Market Growth
10.7 Others

11 Regional Analysis

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, Collaborations, Agreements, and Contracts
12.6.3 Acquisitions

13 Company Profiles
13.1 Key Players
13.1.1 Huawei Technologies Company, Ltd.
13.1.2 Cisco Systems, Inc.
13.1.3 Ciena Corporation
13.1.4 Nokia
13.1.5 Ii-Vi Incorporated
13.1.6 Zte Corporation
13.1.7 Adtran, Inc.
13.1.8 Infinera Corp.
13.1.9 Adva Optical Networking
13.1.10 Fujitsu
13.2 Right to Win
13.3 Other Key Players
13.3.1 Ribbon Communications
13.3.2 Calix, Inc.
13.3.3 Lumentum Holdings Inc.
13.3.4 Neophotonics Corporation
13.3.5 Broadcom
13.3.6 Nec Corporation
13.3.7 Juniper Network, Inc.
13.3.8 Telefonaktiebolaget Lm Ericsson
13.3.9 Alcatel-Lucent Enterprise
13.3.10 Corning
13.3.11 Arista Networks, Inc.
13.3.12 Te Connectivity
13.3.13 Microchip
13.3.14 Padtec

14 Appendix

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