DUBLIN--(BUSINESS WIRE)--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.
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.
- Rise in Demand for Compact and Energy-Efficient Transceivers
- Rising Adoption of Cloud-Based and Virtualization Services Globally
- Growing Number of Data Centers
- High Initial Investment
- Increased Network Complexity
- Expansion of Telecom Infrastructure in Developing Economies
- Deployment of Voip, Lte, and 5G Networks
- Expansion of Networks in Developing Countries
- Adoption of IoT
- Ever Changing Customer Demands for Portable Device and High Speed
- Vulnerability of Optical Networks to Hacking
- Susceptibility of Optical Fibers to Physical Damage and Transmission Losses
- Adtran, Inc.
- Adva Optical Networking
- Alcatel-Lucent Enterprise
- Arista Networks, Inc.
- Calix, Inc.
- Ciena Corporation
- Cisco Systems, Inc.
- Huawei Technologies Company, Ltd.
- Ii-Vi Incorporated
- Infinera Corp.
- Juniper Network, Inc.
- Lumentum Holdings Inc.
- Nec Corporation
- Neophotonics Corporation
- Ribbon Communications
- Right to Win
- Te Connectivity
- Telefonaktiebolaget Lm Ericsson
- Zte Corporation
For more information about this report visit https://www.researchandmarkets.com/r/yen5mc