Optical Communication and Networking Market Analysis

Optical Communication and Networking Market Analysis

Optical communication and networking market size from optical circulators is expected to record over 5% CAGR between 2023-2032. Optical circulators are picking up pace as they facilitate the bi-directional transmission of data over a single fiber. In the past few years, fiber optic circulators have witnessed widespread demand across applications such as telecommunications, military, and aerospace sectors. Growing dependence on optical circulators to support private data networks will complement the segment growth. Advancements in 5G and 4G technologies will fuel the deployment of private data networks worldwide. 

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Wavelength Division Multiplexing (WDM) held more than 45% share in the optical communication and networking market in 2022. The increasing use of high-speed internet service in urban areas has accelerated the demand for WDM solutions. The technology benefits vendors by reducing the cost of transmitters and offers a wide spectrum. Smart technologies and AI-based devices have penetrated residential as well as commercial applications. Connected devices used in homes and offices need automation, large capacity, and flexible automation. WDM helps users address these requirements of connected technologies. The number of connected devices is estimated to reach 125 billion by 2030, with every consumer owning approximately 15 units of this technology. 

Healthcare industry segment is projected to expand at over 15% CAGR from 2023-2032. Digitalization has picked pace across the healthcare sector driving the integration of AI and IoT technologies in medical devices, record keeping, consultation, and diagnosis & treatment. Due to growing dependence on sophisticated systems, the healthcare sector is propelling the demand for reliable and secure network infrastructure capable of backing IoT device connectivity. Moreover, increasing awareness regarding minimally invasive surgery has led to the large-scale adoption of technologies depending on fiber optics.
 

Asia Pacific optical communication & networking market share was more than 30% in 2022. Over the last decade, countries such as India, and China have experienced a dynamic development in 5G networks. Telecom subscribers in the region are propelling the demand for optical communication and networking solutions and products as they offer greater connectivity and ultra-fast speed. The rising popularity of optical communication products can be attributed to their ability to offer low latency to telecom providers, and internet service providers among others. Telecom partners are foraying into collaborations and partnerships with providers of optical networking to enhance access to state-of-the-art 5G services.