The emergence of the machine-to-machine (M2M) and internet of things (IoT) technologies, growing demand for high bandwidth, and rising mobile data traffic are some of the factors driving the adoption of optical networking and communication solutions. Owing to such factors, along with the prospering telecommunication sector, the global optical networking and communication market is projected to reach $32.8 billion by 2030. Additionally, the need for higher bandwidth is rapidly escalating, thereby further creating opportunities for service providers and telecommunication carriers in various areas, such as connected cars, autonomous driving, and smart cities.
As the coronavirus (COVID-19) pandemic continues to spread and cause damage to the global economy and consumers’ purchasing power, the electronics and telecommunication component manufacturing and downstream industries are expected to take a hit on a substantial level. Owing to such factors, the optical networking and communication market has experienced a decline in its growth rate in 2020. This dip in the market is expected to flatten, as normalcy arrives. Factors that are predicted to bolster the market growth include the need for stronger and more-efficient networks to address bandwidth needs, as more and more people have started working from home.
Telecommunication Category Led Market in 2019
On the basis of end user, the optical networking and communication market has been categorized into telecommunication, cable/broadcasting, government, cloud and data centers, commercial, industrial, and others. Among these, the telecommunication category is projected to continue its dominance during the forecast period (2020–2030). In addition to the penetration of the internet, social media, and smarphones, 5G is expected to augment the telecommunication market growth, owing to the IoT integration rate, autonomous vehicle demand, and mobile media usage growth across the globe. The telecom ecosystem expects IoT to become the key enabling factor for growth in the coming years.
Based on component, the optical networking and communication market has been categorized into optical fibers, optical transceivers, optical splitters, optical amplifiers, optical switches, optical circulators, and others. Among these, the optical fibers category is projected to attain the fastest growth during the forecast period. Advanced network infrastructure requires low latency, power consumption, and cost, with a higher capacity in terms of data transfer, for which high-quality hardware components are rising in demand. Moreover, one of the primary drivers contributing to the category’s market growth is the growing demand for fiber-to-the-home (FTTH) and fiber-to-the-building (FTTB) solutions.
Among all regions, Asia-Pacific (APAC) led the optical networking and communication market in 2019. Technological advancements and their large-scale adoption in the information technology (IT) and telecommunication sector are spearheading the growth of the APAC optical networking and communication industry. In addition, the growing application of fiber optics in the medical sector and surging government investments to enhance the security infrastructure in developing countries (e.g. India and China) are strengthening the market landscape in APAC.
Key Players Are Launching Products to Increase Their Market Revenue Share
Players in the global optical networking and communication market are launching products to increase their customer base. For instance, in June 2020, Huawei Technology Co. Ltd. announced the launch of latest the next-generation FusionServer Pro V6 intelligent server. This product, which runs on the 3rd Gen Intel Xeon Scalable processor, is designed to support enhanced computing capabilities. The 3rd Gen Intel Xeon Scalable processor supports standard and custom configurations that scale from four to eight sockets.
Similarly, in November 2019, Infinera Corporation announced the availability of Infinera EMXP-XH800, an X-haul-optimized packet optical switch, purpose-built for time-sensitive networking (TSN). Part of Infinera’s XTM Series, the EMXP-XH800 is Metro Ethernet Forum (MEF)-compliant and delivers ultra-low-power, low-latency, and high-density packet optical solutions, designed to help network operators cost-effectively deploy challenging 5G and fiber deep applications.
Browse report overview with detailed TOC on "Optical Networking and Communication Market Research Report: By Component (Optical Fibers, Optical Transceivers, Optical Amplifiers, Optical Switches, Optical Splitters, Optical Circulators), Technology (WDM, SONET, Fiber Channels), Data Transfer Rate (Up to 40 Gbps, 40 Gbps to 100 Gbps, Greater than 100 Gbps), End User (Telecommunication, Cable/Broadcasting, Government, Cloud and Data Centers, Commercial, Industrial) - Global Industry Analysis and Growth Forecast to 2030" at:https://www.psmarketresearch.com/market-analysis/-optical-networking-and-communication-market
Some of the major players operating in the optical networking and communication market are ADVA Optical Networking SE, Ciena Corporation, Cisco Systems Inc., Corning Incorporated, FiberHome Telecommunication Technologies Co. Ltd., Fujitsu Limited, Huawei Technologies Co. Ltd., Infinera Corporation, Viavi Solutions Inc., Nokia Corporation, and ZTE Corporation.