Optical Communication & Networking Market size is set to surpass USD 30 billion by 2027, according to a new research report by Global Market Insights Inc.
Market growth is attributed to a rapid increase in internet traffic and the demand for faster & reliable internet connectivity. The migration of enterprises to cloud computing and the proliferation of mobile phones in the global market have resulted into significant amounts of data being channeled through mega data centers. The market expansion is credited to the growing demand for high-speed connectivity solutions to handle such vast volumes of data. Robust government initiatives and the high rate of cloud adoption are anticipated to support the market progression.
Increasing deployment of optical switches to eliminate a number of network devices is fueling the segment growth
The optical switches segment is expected to showcase 5% growth rate through 2027 led by the wide acceptance across multiple business sectors to reduce the number of network devices along with significant energy savings. Optical switches reduce the network costing, increase transmission capacity, and distribute optical signals to different subscribers with the use of MEMS architectures. The increasing demand for high bandwidth and data transfer rates across enterprises leads to huge opportunities to adopt this solution. Furthermore, the easy availability of integration and deployment with technical expertise is predicted to support the growth of optical switches in the coming years.
Growing market demand for WDM across data centers is fostering the segment expansion
The WDM segment held for 45% of the market share in 2020 impelled by its simpler architecture, better scalability, high capacity to add/drop new channels, multiple ring terminations, multi-services, and multiple fabrics. The data centers use WDM solutions to create multiple data paths on the same fiber and support higher throughputs over duplex fiber optic connections. The increasing use of high-speed internet in urban regions will create a huge demand for WDM solutions. This technology is widely adopted by vendors owing to its less expensive transmitter and widespread spectrum.
Browse key industry insights spread across 250 pages with 255 market data tables and 35 figures & charts from the report, “Optical Communication & Networking Market Size By Component (Optical Fiber, Optical Transceiver, Optical Switch, Optical Amplifier, Optical Circulator), By Technology (Wavelength Division Multiplexing (WDM), Synchronous Optical Network (SONET), Fiber Channel), By Application (IT & Telecom, BFSI, Government & Defense, Healthcare, Retail, Energy & Utilities), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 - 2027” in detail along with the table of contents:
Rising usage of optical communication and networking across the healthcare sector will dominate the market value
The healthcare application segment will grow at a significant pace over the forecast period due to the increasing acceptance of IoT in healthcare institutions and the demand for a reliable network infrastructure that will support IoT device connectivity. Growing number of connections increases more opportunities for malware to attack the network. This is slated to support the adoption of optical communication and networking. Fiber optics offers secure and reliable connectivity to healthcare providers. The fiber optic cables are more challenging to hack than copper cables, aiding to transmit healthcare data efficiently and offering more flexible communication. The fiber optic cables help the healthcare industry to secure important medical data and speed up the process significantly by providing strong bandwidth.
Increasing demand for high connectivity in the APAC region is supporting the market revenue
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Asia Pacific optical communication & networking market is estimated to reach over USD 5 billion by 2027 on account of the presence of automotive, consumer electronics, and industrial verticals. The government of India and China are supporting the digital transformation initiative of ‘Make in India’ & ‘Made in China 2025’, to promote the usage of IoT across multiple industries. The rapid increase in internet users (41.9 per 100 inhabitants) along with bandwidth-intensive applications, such as video-on-demand services, is poised to support the industry growth in the coming years.
Focus on product development by key players to augment the market share
Some of the key companies operating in the market are ADTRAN, Inc., ADVA Optical Networking, Arista Networks, Broadcom Inc., Ciena Corporation, Cisco Systems, Inc., Corning Incorporated, FiberHome, Finisar Corporation, Fujitsu Limited, Huawei Technologies Co., Ltd., Infinera Corporation, Juniper Networks, Inc., Lumentum Operations, Mitsubishi Electric, NEC Corporation, Nokia, Sumitomo Electric, Telefonaktiebolaget LM Ericsson, and ZTE Corporation. The industry leaders are focusing on collaboration initiatives to address the growing demand.