Home > Pressrelease > Optical Communication and Networking Market size to cross $55 Bn by 2032
Optical Communication and Networking Market size to cross $55 Bn by 2032
- Published Date: January 31, 2023
Optical Communication and Networking Market size is estimated to reach USD 55 billion by 2032, according to a recent research report announced by Global Market Insights Inc.
Rapid developments in the 5G network will positively affect the optical communication and networking industry dynamics. Owing to a network surging demand, major telecom operators worldwide are conducting trials to enable the deployment of a 5G. Infrastructure providers are increasingly focusing on the development and integration of sophisticated software and hardware components suitable for the next-generation network. Optical communication and networking solutions have thus gained significant momentum among operators seeking advanced infrastructure capabilities pertaining to massive data traffic to be generated by 5G networks.
Increasing preference for low-latency services to propel demand for optical fibers
Optical fiber held more than 20% share of the optical communication and networking market in 2022. A surge in the number of internet users over the last few years and an increasing need for FTTx, also known as fiber to the x has fostered the deployment of these components. The technologies significantly reduce transmission losses with low latency along with the risk of data collision.
Optical fibers are extensively adopted by data centers, which have massive volumes of data management needs. A growing preference for low-latency services across a broad spectrum of applications will proliferate the demand for optical fiber products.
New remote working trends to accelerate the adoption of SONET technology
Optical communication and networking market share from the synchronous optical network (SONET) is expected to record over 10% CAGR between 2023-2032. SONET has emerged as a promising tool amidst the ongoing digitalization of businesses. Rapid penetration of smartphones, laptops, and other devices along with increasing internet dependence has accelerated the need for transmitting digital data over long distances via fiber optics.
SONET technology helps eliminate the inconvenience associated with increased floor space or congested cable racks and reduces the additional expenses of panels & cabling, and bays. A surge in adoption of work-from-home models driven by the COVID-19 pandemic will foster widespread integration of SONET technology.
Browse key industry insights spread across 330 pages with 277 market data tables and 38 figures & charts from the report “Optical Communication and 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, 2023 – 2032”. in detail along with the table of contents:
High dependence on fiber optic technology across government & defense applications
Government & defense industry vertical segment accounted for more than 15% share of the optical communication & networking market in 2022. Increasing demand for robust data security while transferring over networks and growing bandwidth requirements for smoother data connectivity are propelling the need for optical communication solutions across the government and defense sectors. Fiber optic technology has crucial defense applications due to its high bandwidth capabilities. This ensures data connectivity for equipment such as UAV ground control, radar systems, ship-to-shore communications, missile systems, shelter-to-shelter communications, and field communication centers.
Favorable government efforts to foster MEA optical communication & networking industry
Middle East & Africa optical communication and networking market value is anticipated to expand at over 5% CAGR from 2023-2032. Supportive government initiatives are favoring lucrative business prospects for optical communication and network providers in the region. Telecom giants across MEA are offering seamless connectivity to consumers.
Deals and collaborations to boost optical communication & networking industry development
Huawei Technologies Co. Ltd., Nokia Corporation, Ciena Corporation, ZTE Corporation, FiberHome, Fujitsu, and NEC Corporation are some of the leading companies in the global optical communication and networking industry. These participants are mainly focusing on strategic alliances to expand their business footprint.