PUBLISHER: The Business Research Company | PRODUCT CODE: 1429892
PUBLISHER: The Business Research Company | PRODUCT CODE: 1429892
Optical communication and networking involve the transmission of data at light speed through fiber cables, making them well-suited for low-latency and middle-mile connections that span considerable distances. The role of optical communications and networking technologies is increasingly significant in interconnecting diverse IT resources across globally distributed autonomous network systems, enabling cost-effective information exchange and processing.
Key components of optical communication and networking include optical fiber, optical transceiver, optical switch, optical amplifier, optical circulator, and others. Optical fiber technology entails the transmission of information along glass or plastic fibers, with a varying number of these fibers present in a fiber optic cable. Various technologies, such as wavelength division multiplexing (WDM), synchronous optical network (SONET), and fiber channels, find application in IT and telecom, banking, financial services, insurance (BFSI), aerospace and defense, healthcare, energy and utilities, among other sectors.
The optical communication and networking market research report is one of a series of new reports from The Business Research Company that provides optical communication and networking market statistics, including optical communication and networking industry global market size, regional shares, competitors with an optical communication and networking market share, detailed optical communication and networking market segments, market trends and opportunities, and any further data you may need to thrive in the optical communication and networking industry. This optical communication and networking market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The optical communication and networking market size has grown strongly in recent years. It will grow from $23.32 billion in 2023 to $24.57 billion in 2024 at a compound annual growth rate (CAGR) of 5.4%. The expansion witnessed in the historical period can be ascribed to a rising demand for energy-efficient and compact transceivers, with the technology sector bolstering the need for optical communication. Additionally, the growth is influenced by a growing number of internet users, robust economic development in emerging markets, and the increasing adoption of wireless technology.
The optical communication and networking market size is expected to see strong growth in the next few years. It will grow to $31.98 billion in 2028 at a compound annual growth rate (CAGR) of 6.8%. The anticipated growth in the forecast period can be linked to factors such as the increasing number of data centers, escalating urbanization, government initiatives, and the expanding reach of the internet. Noteworthy trends in this projected period encompass the utilization of multicore optical fiber, the adoption of coherent optics, the use of fiber optic cables, the introduction of new products, technological advancements, as well as mergers, acquisitions, and partnerships and collaborations.
The optical communication and networking market are expected to experience growth driven by the increasing demand for the internet. The surge in demand for internet services is fueled by factors such as the rise in digital media consumption and the widespread adoption of remote work setups. Optical communication and networking technologies are becoming increasingly vital for efficiently interconnecting diverse IT resources across globally distributed autonomous network systems. In 2021, the International Telecommunication Union reported that 4.9 billion people worldwide, equivalent to 63% of the global population, use the internet. Consequently, the escalating demand for internet services is a key factor propelling the growth of the optical communications and networking market.
The growth of the optical communication and networking market is further fueled by favorable government initiatives in developed countries. Governments worldwide are prioritizing investments in optical communication equipment to enhance connectivity. For example, the United States government invested $401 million to extend high-speed internet access to 31,000 rural residents and businesses across 11 states, involving the construction of fiber-optic cable and optical network terminals. Similarly, the Canadian government allocated $6.9 million to fund projects aimed at bringing high-speed internet to over 3,455 households in rural Ontario through the development of fiber-optic networks. These initiatives underscore the significant role of government support in driving the optical communication and networking market.
A prominent trend in the optical communication and networking market is technological advancements. Major players in the sector are focused on developing innovative technologies to maintain their competitive edge. For instance, ADVA, a German telecommunications equipment company, introduced MicroMux, a BiDi pluggable device that supports single-fiber operations and enhances signal range. This technology facilitates connectivity deployments in wireless and wireline access networks, contributing to increased bandwidth.
The optical communication and networking industry also witness a key trend of frequent new product launches, enabling companies to stay competitive and address evolving consumer needs. The launch of new products not only enhances competitiveness but also generates excitement in the market, potentially driving sales and elevating brand awareness. Huawei, a Chinese technology company, developed the first Optical Transport Network (OTN) communication product, Hybrid OTN (H-OTN), to support Native Hard Pipes (NHPs) and accelerate digital transformation across various industries. The company also unveiled the Huawei OptiXsense series, featuring an innovative intrinsically safe industrial optical terminal and a 10G mini optical terminal.
In November 2022, Ciena Corporation, a US-based networking systems, services, and software company, completed the acquisition of Tibit Communications and Benu Networks. This strategic move enhances Ciena's capabilities in serving clients' next-generation metro and edge strategies, aligning with the increasing focus on network updates and improved connectivity at the network edge. Tibit Communications, a US-based pluggable device company, and Benu Networks, a US-based software company, bring valuable assets to Ciena's portfolio through this acquisition.
Major companies operating in the optical communication and networking market report are Huawei Technologies Co Ltd., Cisco Systems Inc., Fujitsu Group, II-VI Incorporated, Nokia,Broadcom Inc., Zte, Ciena, Juniper Networks Inc., Ericsson, Finisar, Adtran, Adva, Coriant, Eci Telecom Ltd., Oclaro Inc., Neophotonics Corporation, Fiberhom, Sumitomo Electric, Infinera, Lumentum Operations Llc, T-Mobile, Polkomtel, Beeline, Megafon, Mobile Telesystems, Lumen Technologies, Ribbon Communications Inc., Fiber Optics Professionals, LLC, Canadian Fiber Optics, Northern Lights Fiber, Valo Networks, Netell Telecom, Telefonica Brasil, Tim, Telecom Argentina, Movistar, Brfibra, Wirelink, Icom, Dustphotonics, Colorchip, Cognifiber, Packetlight, Raicol Crystals, Galayor Networks, Arabian Networks Support Co, Communication Solutions Company, Dawiyat Integrated Telecommunications & Information, Etisalat Corporation, Mainone, Backbone Connectivity Network, Bionet Technologies, Sea-Net Technologies Nigeria Limited, Dark Fibre Africa
Asia-Pacific was the largest region in optical communication and networking in 2023. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the optical communication and networking market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the optical communication and networking market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The optical communication and networking market consists of revenues earned by entities by providing light signal transmitters and photo detecting receivers. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Optical Communication and Networking Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on optical communication and networking market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for optical communication and networking? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The optical communication and networking market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.