LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global optical network hardware market size to grow to USD 24.99 billion by 2021, at a CAGR of close to 13% over the forecast period, according to their latest report.
The research study by Technavio on the global optical network hardware market for 2017-2021 provides detailed industry analysis based on communication type (wave division multiplexing (WDM) and synchronous optical networking or synchronous digital hierarchy (SONET/SDH)) and geography (the Americas, EMEA, and APAC).
Wave division multiplexing dominates the global optical network hardware market, generating over 81% of the overall revenue. The dominance is primarily driven by China’s investments towards the development of broadband infrastructure, with a focus on 100G fiber-optic internet connections.
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Technavio analysts highlight the following three factors that are contributing to the growth of the global optical network hardware market:
- Growing mobile data traffic
- High demand for data centers
- Development of 5G network
Growing mobile data traffic
“The global smartphone and tablet markets have been witnessing impressive growths, leading to a surge in broadband requirements. Optical fiber infrastructure is being deployed across the globe to meet the demand for high-speed broadband,” says Sunil Kumar Singh, one of the lead analysts at Technavio for embedded system research.
Optical fiber networks connect to cell towers where radio-frequency photons are converted to infrared photons to ensure efficient and effective transfer of data to all-fiber networks. The demand for these fiber networks and the hardware associated with it will accelerate over the forecast period, thereby driving market growth.
High demand for data centers
Optical networking is becoming a core part of storage area networking and business connectivity solutions, which is mainly enabled by the wide-scale adoption of data centers. The rise in demand for high bandwidth, low power, and wide reach data centers is pushing for the adoption of new optical modules. The latest data centers require optical fiber modules to connect servers and switches to accommodate the growing data traffic and adoption of cloud solutions. The need for the latest fiber channel speed stops to ensure efficient data management in data centers will drive the demand for optical network hardware.
Development of 5G network
“5G is designed to meet the growing demand for optimized wireless network technology, supporting high-speed data transmission in cellular networks. The technology is still in development phase, with testing underway in countries such as Finland, Russia, and South Korea. This technology is projected to increase internet speed by up to 40 times,” says Sunil.
5G’s network infrastructure requires low latency, power consumption, and cost, with higher capacity in terms of data transfer. Optical network hardware is a perfect fit for the 5G requirements, creating a massive demand for optical fiber networks and driving the growth of the market.
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, resellers, and end-users.
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