The increasing need for faster and reliable communication is a major factor driving the optical networking and communications market over the forecast period. Optical communications is a technology wherein data is transmitted via optic signals or infra-rays, which has several advantages over cooper wire with respect to distance, bandwidth, speed, maintenance, and resistance. Fiber optic cables’ bandwidth is characterized by large carrying capacity as opposed to copper wires and their operating speeds range into gigabits. The technology serves industry verticals that include telecom, energy & utilities, government, transportation, aerospace & defense, submarines, mining, and oil & gas.
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Optical networks and communications operate from local area network to wide area networks for communications across cities and continents. The ability to achieve high bandwidths enables optical networks and communications to achieve speeds equivalent to 100G, which drives the optical networking and communications market. Increasing use of cloud-based services along with rise in the deployment of datacenters has fueled the need for optical networking and communications.
On the basis of technology, optical communication and networking market can be segmented into Synchronous Digital Hierarchy (SDH), Wavelength Division Multiplexing (WDM), Fiber Channel, and Synchronous Optical Networking (SONET). Typical optical networking and communications services include consulting, deployment, training, and maintenance.
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Europe and North America form the major optical networking and communications regional markets due to the presence of advanced telecommunications network, specifically in countries such as the UK, Germany, U.S., and France. Developing countries such as India, China and Indonesia from Asia Pacific are estimated to have high growths over the next seven years which can be attributed to high household internet penetration, the perennially increasing number of mobile phone internet users, and increased adoption of cloud computing. Growing demand in the Middle East is expected to open up new avenues for market growth.
The present-day optical networking and communications market is characterized by mergers, acquisitions, and partnerships among key market players, which has resulted in the opening up of several opportunities and challenges. The key players in optical networking and communications market include Cisco Systems Inc., JDS Uniphase Corporation, Verizon Communications Inc., Ciena Corporation, Alcatel-Lucent Inc., Huawei Technology, Ericsson Inc., Fujitsu Ltd., and MRV Communications.
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