The global optical communications market was valued USD 18 billion and is anticipated to expand at a CAGR of 5% during the forecast period, between 2021 and 2028. The requirement for higher bandwidth devices with a data throughput of greater than 100 Gigabits per second (Gbps) is likely to rise during the forecast period, owing to the fast expansion of 5G technology and high-performance applications enabled by cloud networks.
Data security in high-capacity broadband networks, short-haul corporate and campus networks, high-bandwidth connections for DCI, and cloud computing are enabled by optical communication and networking devices with data speeds of more than 100 Gbps.
The introduction of revolutionary technologies such as the Internet of Things (IoT) and Artificial Intelligence is fueling the requirement for faster internet connection standards. Traditional Internet lines (coaxial cables) have a maximum speed of 45 Megabits per second (45Mbps), whereas optical fibers can provide speed up to 100 Gigabytes per second (Gbps).
Supply chain disruptions due to the pandemic in the first quarter of 2020 had a substantial impact on demand for optical communication and networking components. Following the second quarter of 2020, the optical communication and networking market rebounded. This is due to rising demand for stable Internet access as a result of the growing work-from-home trend across the globe.
Market Trends, Drivers, Restraints and Opportunities
- Increased Internet traffic and global demand for reliable internet access are driving the market expansion.
- Rising reliance of economies and organizations on uninterruptible data access is generating an insatiable requirement for additional bandwidth, spurring the growth of the market.
- Growing number of data centers and the use of cloud-based services are propelling the optical communication market.
- Expanding use of open-air optical technology, also known as wireless optical transmission, to construct optical networks without optical fibers is estimated to fuel the market growth.
- The rise in the adoption of multiplexing to add extra users to any hub in the optical communications field is positively influencing the growth of the market.
Scope of Optical Communication Market Report
The report on the global optical communications market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
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Attributes
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Details
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Report Title
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Global Optical Communication Market - Industry Analysis, Size, Share, Growth, Trends And Forecast
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Base Year
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2020
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Historic Data
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2018 & 2019
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Forecast Period
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2021–2028
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Segmentation
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Types (Optical Fibers, Optical Amplifiers, and Optical Transceivers), Applications (Data Center, Telecom, and Enterprises), Technology (Width Division Multiplexing (WDM), Fiber Channel, and SONET)
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Regional Scope
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Asia Pacific, North America, Europe, Latin America, and Middle East & Africa
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Report Coverage
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Market scope, analysis, share, competitive analysis, growth facts, restraints, opportunities, and revenue forecast
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Key Players Covered in the Report
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Huawei Technologies Co., Nokia, Cisco, Ciena, ADTRAN, ZTE, Broadcom, Finisar, Fujitsu Optical Components, Infinera, ADVA Optical Networking, and NEC, Juniper Networks
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Optical Communications Market Insights
Optical fibers segment to dominate the market
Based on types, the market can be classified as optical fibers, optical amplifiers, and optical transceivers.
The optical fibers segment is anticipated to lead the market during the forecast period. Optical fibers provide multimode and single-mode interfaces that allow commercial firms to float effective data for communication. Rising demand for data centers, rapid installation of 5G network modules, and expanding data traffic are driving the demand for optical fibers across the globe.
Data centers segment to account a significant market share during the forecast period
On the basis of applications, the market can be segmented into data centers, telecom, enterprises, and others.
The data centers segment held a large market share in 2020, owing to an increasing number of data centers employing optical fiber networks to manage massive data loads. The telecom segment is estimated to dominate in the projected timeline due to the increasing number of smartphones and Internet usage, as well as social media participation.
In order to increase optical networking and communication in the digitally accelerated settings, developing countries such as China and India are prioritizing rapid infrastructure construction, network management, and planning.
Width division multiplexing (WDM) segment projected to hold a large market share
In terms of technology, the market can be divided into width division multiplexing (WDM), fiber channel, and SONET.
The WDM segment is expected to account for a major market share during the forecast period. It transports various wavelengths in a single fiber cable and provides organizations with full-duplex communication and security. Moreover, increasing demand for high-speed data transfer is estimated to foster the segment growth.
North America to account a large market share
In terms of regions, the market can be segmented into North America, Asia Pacific, Europe, Middle East & Africa and Latin America.
North America is anticipated to attain a larger market share in the projected timeline. High concentration of data centers and cloud computing hubs in the US, as well as the rapid development of the IT industry are proliferating the growth of the regional market.
Segments
By Types
- Optical Fibers
- Optical Amplifiers
- Optical Transceivers
By Applications
- Data Centers
- Telecom
- Enterprises
By Technology
- Width Division Multiplexing (WDM)
- Fiber Channel
- SONET
By Regions
- North America
- Asia Pacific
- Europe
- Middle East & Africa
- Latin America
By Key Players
- Huawei Technologies Co.
- Nokia
- Cisco
- Ciena
- ADTRAN
- ZTE
- Broadcom
- Finisar
- Fujitsu Optical Components
- Infinera
- ADVA Optical Networking
- NEC
- Juniper Networks
Competitive Landscape
The major players in the optical communication market are Huawei Technologies Co., Nokia, Cisco, Ciena, ADTRAN, ZTE, Broadcom, Finisar, Fujitsu Optical Components, Infinera, ADVA Optical Networking, and NEC, Juniper Networks.
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