Global Optical Networking Market Analysis Report, 2022-2023 & 2028: Key Players are Looking to Employ Strategic Initiatives and Launch New Products to Secure the Competitive Edge
DUBLIN, Sept. 4, 2023 /PRNewswire/ -- The "Global Optical Networking Market: Analysis By Data Range, By Component, By Technology, By End User, By Region Size & Forecast with Impact Analysis of COVID-19 and Forecast up to 2028" report has been added to ResearchAndMarkets.com's offering.
The global optical networking market is on track to reach a substantial value of US$31.26 billion by 2028, marking significant growth from its 2022 valuation of US$18.93 billion. Projected to expand at a commendable Compound Annual Growth Rate (CAGR) of 8.72% throughout the forecast period from 2023 to 2028, the market's progression can be attributed to various factors.
The widespread penetration of smartphones and the escalating demand for network-connected devices are driving forces behind the market's growth. The surge in internet users, both at home and in workplaces, has engendered an unprecedented demand for network bandwidth. Moreover, the ascent of cloud technology has played a pivotal role in propelling the optical networking market. Enterprises gravitating towards cloud-centric or hybrid approaches are anticipated to sustain strong demand for optical equipment, given the indispensable role they play in cloud operations.
In tandem, the burgeoning expansion of data centers, which accommodate an array of computing systems and communication equipment, is fostering the adoption of optical communication solutions. These solutions facilitate rapid and reliable data transmission, thereby accelerating the market's growth.
Additionally, the market is poised to flourish owing to the rapid growth in the telecom sector, proliferation of data center establishments, increased smartphone adoption, the inclination towards wireless optical networks, surging bandwidth requirements, the rise of cloud hyperscale infrastructure, and more.
However, this promising market trajectory is not without its challenges. The high initial setup costs associated with optical communication solutions, such as fiber optic cables and related infrastructure, pose a hurdle. The intricacies of installation and maintenance are technically demanding, with errors potentially causing significant disruptions and losses for enterprises. The market also grapples with challenges like the escalating complexity of networks and heightened security concerns.
Amidst these dynamics, a prevailing trend taking root in the optical networking market is the escalating adoption of the Internet of Things (IoT). As IoT applications proliferate across diverse industries, optical networking emerges as a linchpin in managing the deluge of data generated by interconnected devices.
Optical communication technologies prove particularly apt for applications like Artificial Intelligence (AI) and IoT due to their immunity to electrical interference, making them resilient even in the face of challenges like storms and lightning. Moreover, other trends such as the increasing uptake of 5G networks, technological advncements, and industry consolidation are poised to further stimulate the growth of the optical networking market in the projected timeframe.
Market Segmentation Analysis:
By Data Range:
Up to 40 GBPS segment acquired majority of share in the market in 2022 as when compared to typical copper-based networks, optical networking at speeds of up to 40 GBPS delivers a huge boost in bandwidth. This enables enterprises to fulfill the increased need for high-speed connectivity by allowing for speedier data transmission. Whereas, the Greater than 100 GBPS segment has the fastest CAGR due to the continuous development of 5G & high-performance services brought by cloud networks.
Optical Transceivers segment acquired majority of share in the market in 2022 as there is increasing demand for high-speed data transmission, increased internet traffic, and the deployment of optical communication technologies in data centers, telecommunication networks, and enterprise networks. Whereas, the Optical Fiber segment has the fastest CAGR as there is high demand for data centers, rapid deployment of the 5G network, and growing data traffic.
WDM segment acquired majority of share in the market in 2022 as wavelength division multiplexer (WDM) technique multiplexes different optical carrier signals on a single optical fiber with the help of laser lights of different wavelengths. Whereas, the Fiber Channel segment has the fastest CAGR as it has low latency, high throughput, and high reliability, making it excellent for high-demand storage situations including enterprise data centers, cloud storage, and high-performance computing.
IT and Telecom segment acquired majority of share in the market in 2022, as telecom companies use optical networking technology to provide high-speed broadband services such as internet access, voice calls, video conferencing, and multimedia streaming.
Whereas, the same segment is expected to have the highest CAGR in the future as the introduction of new and innovative equipment for transporting data at high speeds, as well as rising demand for more secure networks, are projected to drive growth in this category in the near future.
North America optical networking market enjoyed the highest market share in 2022, due to the increasing demand for high-speed internet connectivity, mobile services, and modern communication solutions, the region has a highly developed telecommunications infrastructure. Optical networking solutions provide the capacity and scalability required to manage increasing data traffic and meet consumer and business needs for quicker and more reliable communication services.
Competitive Landscape and Recent Developments:
Global optical networking market is concentrated, with just top three players namely Huawei, Ciena and Nokia, holding more than half of the market. It is expected that this trend to continue as sub-scale competitors continue to fall creating opportunities for existing leaders (Huawei, Nokia, and Ciena) to gain share.
The key players are constantly investing in strategic initiatives, such as new product launches, introducing their products to emerging markets and more, to maintain a competitive edge in this market.
Key players of global optical networking market are:
For more information about this report visit https://www.researchandmarkets.com/r/b8qxxi
Research and Markets
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