Key Players Huawei, Ciena, and Nokia Lead the Optical Networking Market with Over 50% Market Share, Reveals Global Optical Networking Market Analysis Report for 2022-2023 & 2028 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--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.

Global optical networking market is projected to reach US$31.26 billion by 2028 from US$18.93 billion in 2022. The global optical networking market value is projected to grow at a CAGR of 8.72%, during the forecast period of 2023-2028.

The market's expansion may be ascribed to the smartphone penetration, and strong demand for network-connected devices. The tremendous increase in internet users, both at home and at work, has produced a new level of network bandwidth demand. Further, the rise of the cloud has been a key growth driver for the optical networking market over the past few years. As enterprises continually shift to a cloud centric or hybrid approach, it is expected that cloud demand for optical equipment to remain robust.

Data centers are facilities that house computing systems such as servers, storage devices, and networking and communication equipment in order to store, manage, and process massive volumes of digital data. Data center expansion is encouraging the adoption of optical communication solutions, which allow quicker and more reliable data transmission. Further, the market is expected to increase due to rapid expansion in the telecom industry, establishments of data centers, increasing adoption of smartphones, augmenting inclination toward wireless optical networks , increasing demand for greater bandwidth, rise of cloud hyperscale infrastructure, etc.

The market's expansion is projected to be hampered by high installation costs. Optical communication solutions, such as fiber optic cables and accompanying infrastructure, have a substantially greater initial setup cost than traditional systems. The installation process is extremely technically difficult, and any errors during installation or maintenance can cause significant disruptions and loss for enterprises. The other challenge that optical networking market faces is rise in the network complexity, security concerns, etc.

A major trend gaining pace in optical networking market is increasing adoption of internet of things (IoT). As IoT applications proliferate across numerous industries, optical networking becomes increasingly important in sustaining the large stream of data created by these linked devices.

Optical communication technologies are appropriate for AI and IoT applications since, they are resistant to electrical interference (storms, lightning). More trends in the market are believed to augment the growth of optical networking market during the forecasted period include, rising adoption of 5G networks, technological advancements, consolidation, etc.

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.

By Component:

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.

By Technology:

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.

By Ends User:

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.

By Region:

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.

The market for networking and optical communication equipment is dominated by the US, as the US has an advanced telecommunications business with a big and technologically advanced network infrastructure.

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.

Market Dynamics

Growth Drivers

• Establishments of Data Centers
• Rising Internet Traffic
• Rapid Expansion in the Telecom Industry
• Increasing Adoption of Smartphones
• Rise of Cloud Hyperscale Infrastructure
• Augmenting Inclination toward Wireless Optical Networks
• Increasing Demand for Greater Bandwidth

Challenges

• High Installation Cost
• Rise In The Network Complexity
• Security Concerns

Market Trends

• Increasing Adoption of Internet of Things (IoT)
• Rising Adoption of 5G Networks
• Technological Advancements
• Consolidation

Competitive Landscape

• Global Optical Networking Players by Market Share
• Global WDM Optical Networking Players by Market Share
• European Union Optical Networking Players by Market Share

Key players of global optical networking market are:

• Huawei Investment & Holding Co. Ltd.
• Fujitsu Limited
• Cisco Systems, Inc.
• Nokia Corporation
• ZTE Corporation
• Ciena Corporation
• Infinera Corporation
• NEC Corporation
• Adtran. Inc., (ADVA Optical Networking SE)
• Ribbon Communications Inc.
• II-VI Incorporated (Coherent Corp.)
• Viavi Solutions Inc.
• Corning Incorporated
• FiberHome Telecommunication Technologies Co., Ltd.

For more information about this report visit https://www.researchandmarkets.com/r/9nek1b

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