Optical Communication and Networking Equipment Market Demands, Overview, Trends, Outlook, and Key Players - Huawei Technologies Co., Ltd. (China), Cisco Systems, Inc. (US), Ciena Corporation (US), Nokia (Finland), II-VI Incorporated (US)

The Optical Communication and Networking Equipment Market research market report is the outcome of persistent efforts led by knowledgeable forecasters, innovative analysts, and brilliant researchers who carry out detailed and diligent research on different markets, trends, and emerging opportunities in the consecutive direction for the business needs. Systematic investment analysis is also underlined in this report which forecasts impending opportunities for the market players.

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The global optical communication and networking equipment market was estimated at USD 24.2 billion in 2022 and is projected to reach USD 36.6 billion by 2027, growing at a CAGR of 8.6% from 2022 to 2027.

The largest consumer of optical communication and networking equipment market is dominated by a few globally established players such as Huawei Technologies Co., Ltd. (China), Cisco Systems, Inc. (US), Ciena Corporation (US), Nokia (Finland), II-VI Incorporated (US).

Growing adoption of data centersand the deployment of VOIP, LTE, and 5G networks are the major driving factors for the growth of the optical communication and networking equipment market.

"Up to 40 Gbps: The fastest-growing segment of the optical communication and networking equipment market. "

Optical communication and networking equipment with up to 40 Gbps data rate accounted for the largest market share of ~49% in 2021. As the network capacity increases, the element management system (EMS) requires higher reliability. The data rate of up to 40 Gbps provides reliable monitoring technology for large-capacity networks. Moreover, the market for optical communication and networking equipment with greater than 100 Gbps data rate is projected to grow with the highest CAGR of 9.8% during the forecast period. With the rapid development of 5G and high-performance services brought by cloud networks, the demand for higher bandwidth devices with a data rate of greater than 100 Gbps is expected to grow in the near future.

"Data Center: The highest growing application in optical communication and networking market."

The data center application is expected to dominate the market throughout the forecast period. The application is also expected to grow at the highest CAGR during the forecast period. Data centers are used for commercial purposes of OTT platforms, which are in constant demand and are rapidly increasing. The rise in the number of OTT platforms (Netflix, HBO, Disney, and Amazon Prime) over the year are expected to propel the data center market in the future.

"Cloud Segment: The fastest-growing vertical in optical communication and networking equipment market during the forecast period."

Could segment of the optical communication and networking equipment market is projected to grow at the highest CAGR during the forecast period. Cloud computing has become an essential part of the business landscape. In this regard, several companies are highly adopting complex computing solutions. The ever-growing clout of digital devices increases the demand for data storage space, transmission speed, and flexibility. These factors are fueling the adoption of optical communication and networking equipment in cloud computing, which supports high-data transmission and offers high switching speed and large data storage.

"The Americas: The largest region in the optical communication and networking equipment market in 2021."

The Americas accounted for the largest share of ~40% of the optical communication and networking equipment market in 2021. The Americas has emerged as a major data center and cloud computing hub. Thus, it is the largest consumer of optical communication and networking equipment market. Factors such as the robust presence of major companies in the region; high demand for data communication; increased use of communication devices, such as smartphones, tablets, and VoIP equipment; as well as the growing market for wearable devices and increasing deployment of data centers drive the growth of the optical communication and networking equipment market in this region. Further, high defence spending and the presence of numerous important market players in the US are the key factors supporting the expansion of the market in the region.

Breakdown of primaries

The study contains insights from various industry experts, ranging from component suppliers to Tier 1 companies and OEMs. The break-up of the primaries is as follows:

By Company Type- Tier 1- 50%, Tier 2- 30% Tier 3 - 20%
By Designation- C level - 30%, Managers - 30%, Other Level - 40%
By Region- Americas - 10%, Asia Pacific - 40%, Europe - 20%, RoW - 30%,

The study includes an in-depth competitive analysis of these key players in the largest consumer of optical communication and networking equipment market, with their company profiles, recent developments, and key market strategies.

Research Coverage:

The report segments the largest consumer of optical communication and networking equipment market and forecasts its size, by volume and value, based on region (Asia Pacific, Europe, North America, and RoW), by component(Optical Fibers, Optical Transceivers, Optical Amplifiers, Optical Switches, Optical Splitters, and Optical Circulators), technology (SONET/SDH, WDM, CWDM, DWDM, and Fiber Channel), application (TELECOM, Data Center, and Enterprise), data rate(Up To 40 GBPS, Greater Than 40 Gbps To 100 Gbps, Greater Than 100 Gbps), vertical (BFSI, Government, Healthcare, Cloud, Energy & Utilities, and Others).

The report also provides a comprehensive review of market drivers, restraints, opportunities, and challenges in the optical communication and networking equipment market. The report also covers qualitative aspects in addition to the quantitative aspects of these markets.

Key Benefits of Buying the Report:

The report will help the leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall market and the sub-segments. This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the optical communication and networking equipment market and provides them information on key market drivers, restraints, challenges, and opportunities.

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Table Of Contents

1 Introduction
1.1 Study Objectives
1.2 Market Definition And Scope
1.2.1 Inclusions And Exclusions
1.2.2 Markets Covered
Figure 1 Optical Communication And Networking Equipment Market Segmentation
1.3 Years Considered
1.4 Currency
1.5 Package Size
1.6 Limitations
1.7 Market Stakeholders

2 Research Methodology
2.1 Research Data
Figure 2 Optical Communication And Networking Equipment Market: Research Design
2.1.1 Secondary Data
2.1.1.1 List Of Major Secondary Sources
2.1.1.2 Secondary Sources
2.1.2 Primary Data
2.1.2.1 Key Data From Primary Sources
2.1.2.2 Key Industry Insights
2.1.2.3 Breakdown Of Primaries
2.2 Market Size Estimation
2.2.1 Bottom-Up Approach
Figure 3 Market Size Estimation Methodology: Bottom-Up Approach
2.2.2 Top-Down Approach
Figure 4 Market Size Estimation Methodology: Top-Down Approach
2.2.3 Market Share Estimation
2.3 Market Breakdown And Data Triangulation
Figure 5 Market Breakdown And Data Triangulation
2.4 Research Assumptions
Figure 6 Assumptions Of Research Study

3 Executive Summary
3.1 Realistic Scenario
3.2 Optimistic Scenario
3.3 Pessimistic Scenario
Figure 7 Growth Projections For Optical Communication And Networking Equipment Market In Realistic, Optimistic, And Pessimistic Scenarios
Figure 8 Market For Optical Transceiver Component-Based Optical Communication And Networking Equipment To Grow At Highest Cagr During Forecast Period
Figure 9 Data Center Application To Hold Largest Market Share In 2027
Figure 10 Cloud Segment To Register Highest Cagr In Optical Communication And Networking Equipment Market During Forecast Period
Figure 11 Asia Pacific Likely To Be Fastest-Growing Region In Optical Communication And Networking Equipment Market During 2022-2027

4 Premium Insights
4.1 Attractive Opportunities In Optical Communication And Networking Equipment Market
Figure 12 Rising Adoption Of Cloud-Based And Virtualization Services Drives Optical Communication And Networking Equipment Market Growth
4.2 Optical Communication And Networking Equipment Market, By Application
Figure 13 Data Center Application Expected To Dominate Optical Communication And Networking Equipment Market During Forecast Period
4.3 Optical Communication And Networking Equipment Market In Asia Pacific, By Country And Component
Figure 14 China And Optical Switches Captured Largest Share Of Optical Communication And Networking Equipment Market In Asia Pacific, By Country And Component, Respectively, In 2021
4.4 Optical Communication And Networking Equipment Market, By Technology
Figure 15 Wdm Technology To Hold Largest Share Of Optical Communication And Networking Equipment Market During Forecast Period
4.5 Country-Wise Analysis Of Optical Communication And Networking Equipment Market
Figure 16 Optical Communication And Networking Equipment Market In South Korea To Register Highest Cagr During Forecast Period

5 Market Overview
5.1 Introduction
5.2 Market Dynamics
Figure 17 Optical Communication And Networking Equipment Market: Drivers, Restraints, Opportunities, And Challenges
Figure 18 Market Growth Projections Considering Drivers
Figure 19 Market Growth Projections Considering Opportunities
Figure 20 Market Growth Projections Considering Challenges And Restraints
5.2.1 Drivers
5.2.1.1 Rise In Demand For Compact And Energy-Efficient Transceivers
5.2.1.2 Rising Adoption Of Cloud-Based And Virtualization Services Globally
Figure 21 Saas: Most Highly Deployed Cloud Service Model Globally, 2016-2021
Figure 22 Global Ip Traffic, 2017-2022
Figure 23 Global Mobile Data Traffic From 2017 To 2022
5.2.1.3 Growing Number Of Data Centers
Figure 24 Ip Traffic Growth In Global Data Centers
Figure 25 Hyperscale Data Center Growth: Regional View
5.2.2 Restraints
5.2.2.1 High Initial Investment
5.2.2.2 Increased Network Complexity
5.2.3 Opportunities
5.2.3.1 Expansion Of Telecom Infrastructure In Developing Economies
5.2.3.2 Deployment Of Voip, Lte, And 5g Networks
Figure 26 Wireless Network Connections In North America, By Technology
Figure 27 5g Connection Forecast, By 2025
5.2.3.3 Expansion Of Networks In Developing Countries
Figure 28 Mobile Subscriber Penetration Rate, By Region
5.2.3.4 Adoption Of Iot
Figure 29 Connected Devices, 2018-2023
5.2.4 Challenges
5.2.4.1 Ever Changing Customer Demands For Portable Device And High Speed
5.2.4.2 Vulnerability Of Optical Networks To Hacking
5.2.4.3 Susceptibility Of Optical Fibers To Physical Damage And Transmission Losses
5.3 Value Chain Analysis
Figure 30 Value Chain Analysis: Major Value Is Added By Component Manufacturers And System Integrators

6 Optical Communication And Networking Equipment Market, By Component

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