USD 5.47 billion
Optical Network Hardware Market Size, Share, Growth Analysis, By Equipment(WDM, and SONET-SDH), By Application(Smart cities, Fibre Optic Network, Data Center, and Broadband Infrastructure), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45H2067 |
Region:
Global |
Published Date: March, 2024
Pages:
188
|Tables:
63
|Figures:
74
Optical Network Hardware Market Insights
Global Optical Network Hardware Market size was valued at USD 5.47 billion in 2022 and is poised to grow from USD 5.72 billion in 2023 to USD 8.59 billion by 2031, growing at a CAGR of 4.62% during the forecast period (2024-2031).
The global optical network hardware market is growing significantly driven by the increasing demand for high-speed and reliable data transmission across various industries. With the rapid increase of data-intensive applications, cloud computing, and the advent of technologies like 5G, the need for robust optical network infrastructure is growing. Key factors driving the expansion of the market include the rising adoption of fibre optic communication systems for their superior bandwidth capabilities, low latency, and scalability. Moreover, the increase in internet traffic, fuelled by the explosion of connected devices and digital content consumption, is driving the deployment of optical network hardware to meet the growing bandwidth requirements.
The market also faces several restraints and challenges, which includes the high initial deployment costs associated with optical network infrastructure, especially in emerging economies. The complexity to upgrade existing infrastructure to support optical networks and the need for skilled technicians pose challenges for market growth. Further, the regulatory constraints and the risk of network security breaches remain significant concerns for market players.
Despite these challenges, the market presents investment opportunities, particularly in research and development initiatives aimed at enhancing optical network hardware performance, reducing costs, and addressing emerging technological trends. Moreover, demand for optical network hardware is growing in emerging applications such as edge computing, Internet of Things (IoT) connectivity, and 5G wireless networks which presents routes for market expansion. Overall, with technological advancements and increasing demand for high-speed data transmission, the global optical network hardware market is poised for continued growth and innovation.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
WDM
Fastest Growth
SONET-SDH
Growth Rate
4.62% CAGR
Global Optical Network Hardware Market ($ Bn)
Country Share for North America Region (%)
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Optical Network Hardware Market Segmental Analysis
Global Optical Network Hardware Market is segmented by equipment, application, and region. Based on equipment, the market can be segmented into WDM and SONET-SDH. Based on application, the market is segmented into smart cities, fibre optic network, data centre and broadband infrastructure. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by Equipment
By equipment, the market can be segmented into WDM and SONET-SDH. In the global optical network hardware market, the dominating segment Wavelength Division Multiplexing (WDM) holds a significant position. This market is dominated by WDM-based optical network equipment, such as optical transceivers, multiplexers, and amplifiers, which are widely used in access, metro, and long-haul networks WDM technology uses several light wavelengths to enable the simultaneous transmission of multiple optical signals over a single fibre optic line. This maximizes bandwidth capacity, allows for the effective use of fibre optic infrastructure, and facilitates high-speed data transfer in telecommunications networks.
Synchronous Optical Networking (SONET) and Synchronous Digital Hierarchy (SDH) is the fastest growing segment for optical network hardware market. SONET/SDH-based equipment is being adopted at a quick pace due to the growing demand for dependable and high-performance optical networks, especially in important applications including enterprise communication, financial services, and healthcare. Furthermore, SONET/SDH's development to accommodate faster data rates and smooth integration with cutting-edge technologies like packet-based networks adds to its rise to prominence in the optical network hardware industry.
Analysis by Application
By application, the market can be segmented into smart cities, fibre optic network, data centre and broadband infrastructure. In the global optical network hardware market, the dominating segment is application, with the sub-segment fibre optic network plays a significant role. Fibre optic networks are important for facilitating high-speed data transmission over long distances with minimal signal degradation. These networks make the backbone of modern telecommunications infrastructure, and serve as the primary means of connecting cities, regions, and countries. With the increasing demand for bandwidth-intensive applications such as video streaming, cloud computing, and IoT connectivity, fibre optic networks witness widespread deployment across various sectors including telecommunications, enterprise networks, and government infrastructure projects.
The fastest-growing segment in the global optical network hardware market is smart cities which experiences rapid expansion. Smart city initiatives aim to leverage advanced technologies, including optical networks, to enhance urban infrastructure, improve efficiency, and enhance quality of life for residents. Optical network hardware deployed in smart city applications enables real-time data collection, monitoring, and analysis across various domains. As governments and municipalities globally invest in transformation of their cities into smart, connected ecosystems, the demand for optical network hardware tailored for smart city applications is expected to witness significant growth, drives innovation and market expansion.
Global Optical Network Hardware Market by Application
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Optical Network Hardware Market Regional Insights
In the optical network hardware market, North America emerges as the dominating region. North America is the leader in the adoption and invention of optical network gear due to its sophisticated telecommunications infrastructure, large investments in research and development, and strong demand for high-speed data transmission solutions. In addition to being the home of important industry players, the region is a major hub for data centres, telecom networks, and cloud computing services. It also fosters technical developments.
The optical network hardware market is expanding fastest in the Asia Pacific region. Demand for optical network infrastructure is being driven by rapid industrialization, urbanization, and digital transformation activities in industries including manufacturing, IT, telecommunications, and healthcare. The Asia Pacific optical network hardware market is expanding because of significant investments being made in fiber optic networks, broadband infrastructure, and smart city initiatives in nations like China, India, Japan, and South Korea.
Global Optical Network Hardware Market by Region
- Largest
- Fastest
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Optical Network Hardware Market Dynamics
Drivers
Increasing Demand for High-Speed Internet and Bandwidth-intensive Applications
- One of the key drivers for the global optical network hardware market is the continuous increase in demand for high-speed internet connectivity and bandwidth-intensive applications. With the explosion of data-intensive activities such as video streaming, cloud computing, online gaming, and IoT devices, there is a growing need for robust optical network infrastructure to support the transmission of large volumes of data efficiently and reliably. Optical network hardware, including fiber optic cables, transceivers, switches, and routers, plays an important role in meeting this demand by enabling high-speed data transmission over long distances with minimal latency, driving the growth of the optical network hardware market.
Restraints
High Initial Investment Costs and Infrastructure Deployment Challenges
- The high initial investment costs associated with building optical network infrastructure are a major challenge to the growth of the worldwide optical network hardware market. Fiber optic cables, network equipment, installation, and maintenance all require large capital investments when implementing optical networks. Particularly in densely populated urban areas, procuring rights-of-way, obtaining permissions, and navigating regulatory obstacles are common issues faced during the development of optical networks. These elements lead to greater project costs overall and longer deployment schedules, which creates obstacles to the expansion of the market for suppliers and manufacturers of optical network hardware.
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Optical Network Hardware Market Competitive Landscape
The global Optical Network Hardware Market is characterized by intense competition among key players striving to gain a significant market share. Established companies leverage their extensive experience, brand recognition, and global presence to maintain dominance, while emerging players focus on niche markets or disruptive technologies to gain traction. With rapid advancements in optical networking technologies and increasing demand for high-speed data transmission solutions, competition intensifies as companies strive to offer superior products with enhanced performance, reliability, and cost-effectiveness.
Top Player’s Company Profiles
- Adtran
- Cisco
- Nokia Corporation
- Ciena
- Huawei Technologies
- ZTE Corporation
- Fujitsu Ltd
- Infinera
- Telefonaktiebolaget LM Ericsson
- NEC Corp
- Arris
- Broadcom
- Calix
- Mitsubishi Electric Corp
- Verizon
- Juniper Networks
- ADVA
- Arista Networks
- Extreme Networks
Recent Developments
- In June 2023, Actelis Networks, Inc. launched a new line of sophisticated, software-managed, temperature-and cyber-hardened layer 2 and layer 3 fiber optic switching devices in cyber-hardened, rapid deployment networking solutions for wide area Internet of things applications. Actelis will be able to serve hybrid fiber-copper networks that have a higher percentage of fiber by offering a far wider range of options for both small and large networks, at faster speeds.
- In February 2023, Nokia announced the release of the PSE-6s, a sixth-generation super-coherent photonic service engine that can cut network power usage by 60.
- In November 2022, Ciena has consented to purchase Tibit Communications to enhance the business's passive optical network infrastructure.
Optical Network Hardware Key Market Trends
- In optical network gear, there is a trend toward faster speeds and more bandwidth capacity. The need for optical network solutions that can handle ultra-fast data transmission rates and meet ever-increasing bandwidth demands is developing because of upcoming technologies like 5G, IoT, and cloud computing, which are driving up data consumption.
- As NFV and SDN become more widely used in optical network deployments, more automation, scalability, and flexibility are possible. SDN and NFV improve network programmability, maximize resource usage, and streamline network management by separating network control and forwarding functions and virtualizing network services. This helps operators employing optical network gear save money and operate more efficiently.
- With the increase usage of edge computing applications and the need for low-latency, high-performance connectivity, there's a shift towards distributed networking architectures in optical networks. This trend drives the demand for optical network hardware optimized for edge computing deployments, enabling faster data processing, reduced latency, and improved user experiences.
Optical Network Hardware Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
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| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 5.47 billion |
| Market size value in 2031 | USD 8.59 billion |
| Growth Rate | 4.62% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Optical Network Hardware Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Optical Network Hardware Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Optical Network Hardware Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Optical Network Hardware Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Optical Network Hardware Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Optical Network Hardware Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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