According to the most recent analysis by Emergen Research, the size of the global market for optical communication and networking equipment is anticipated to reach USD 34.47 billion in 2028 and show a consistent revenue CAGR of 8.4% throughout the projected period. Expanding demand for high-speed network connectivity, rising use of smartphones and other network-connected devices, as well as an increase in Internet users, are all factors contributing to the market’s revenue growth. Due to the increased emphasis that businesses are placing on wavelength transmission of network connections, these factors are further driving the usage of optical communication and networking equipment.
The covid-19 pandemic has had a significant impact on the development of the global market for optical communication and networking equipment. Due to the global downturn and lack of labour, production facilities for electronics and semiconductors have been put on hold. Due to the pandemic’s disruption of global supply networks, market growth has fallen down in 2020.
However, a rebound in the market’s growth rate is anticipated in the upcoming years due to companies’ increased attention on meeting the surge in demand for telecommunications equipment brought on by the quickening of 5G rollout across the globe. Additionally, pandemic has increased the number of fibre optic broadband connections globally because to an increase in data traffic and increasing broadband requirements as a result of people remaining at home.
The development of telecommunications infrastructure will significantly benefit emerging nations. There is a rising need for smart devices and other linked applications as a result of IoT, AI, and Big Data. The capture, translation, and transmission of data into useful information—which is essential for the reinforcement of urban infrastructure—is made possible by the integrated technologies across telecommunications industries. A high-speed fibre optics network, capable of moving massive volumes of data quickly from one end to the other, serves as the foundation for this kind of infrastructure growth. High-bandwidth oriented fibre optical cables combined with optical transceivers are necessary for the deployment of the 5G and 6G networks in order to ensure secure and dependable data transfers. As a result, the market for optical communication and networking equipment will be driven in the future by the construction of optical communication infrastructure in developing countries.
Some Key Highlights From the Report:
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In 2020, the optical communication and networking equipment market’s optical transceivers segment had the biggest revenue share. Growth of this market would be boosted by the continued development of high-speed networking technology that stores data on servers to reduce traffic. Electrical data signals from data switches are converted into optical signals via optical transceivers.
The WDM category is anticipated to expand quickly over the projected period. Demand for fibre optic transmission techniques, which allow several wavelengths to transport data on the same medium, is rising in tandem with the demand for high-speed networks. It is causing optical communication and networking equipment to increasingly switch to wavelength division multiplexing.
The optical communication and networking equipment market in 2021 was dominated by the BFSI vertical, which held a 42% market share. The BFSI industry is using optical communication and networking devices more and more to safeguard the private information of its clients, comply with regulatory requirements to assure data security, enable security auditing, and prevent reputational harm brought on by data breaches. As a result, the market for optical communication and networking equipment is growing due to the BFSI vertical.
Cisco, Fujitsu Optical Components, Huawei Technologies Co., Ltd., Ciena Corporation, Finisar Corporation, Ericsson, Nokia Corporation, Juniper Network, Broadcom Corporation, Infinera Corporation, NEC Corporation, and Adtran Inc.
Emergen Research has segmented global optical communication and networking equipment market on the basis of component, technology, application, end-use, and region:
Component Outlook (Revenue, USD Billion; 2021–2028)
Technology Outlook (Revenue, USD Billion; 2021–2028)
Application Outlook (Revenue, USD Billion; 2021–2028)
End-use Outlook (Revenue, USD Billion; 2021–2028)
IT & Telecommunication
Energy & Utilities