Optical network hardware market size to grow by USD 6,074.53 million; North America to account for 36% of the growth of the global market - Technavio
NEW YORK, Feb. 15, 2023 /PRNewswire/ -- According to Technavio, the global optical network hardware market size is estimated to grow by USD 6,074.53 million from 2022 to 2027. The market is estimated to grow at a CAGR of 7.43% during the forecast period. Moreover, the growth momentum will accelerate. North America will account for 36% of the growth of the global market during the forecast period. The report includes historic market data from 2017 to 2021. In 2017, the optical network hardware market was valued at USD 11,361.03 million. The report also provides a comprehensive analysis of growth opportunities at regional levels, new product launches, the latest trends, and the post-pandemic recovery of the global market. For more insights on the market, request a sample report.
Optical network hardware market - Five forces The global optical network hardware market is fragmented, and the five forces analysis covers?
Bargaining power of buyers
The threat of new entrants
Threat of rivalry
Bargaining power of suppliers
Threat of substitutes
For an interpretation of Porter's five forces model ? Buy the report!
The report includes the market's adoption lifecycle, from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Segment overview Technavio has segmented the market based on type (broadband infrastructure, fiber optic network, data center, and smart cities) and application (WDM and SONET/SDH).
The broadband infrastructure segment will account for a significant share of the market's growth during the forecast period. This growth will be accelerated by the increasing penetration rate of the internet and smartphones. In addition, the use of bandwidth in finance, media, and automation has increased significantly. The advent of IoT will fuel the demand for seamless data transmission, which requires high bandwidth. These factors are expected to increase the use of optical transport networks, which will drive the demand for broadband infrastructure during the forecast period.
Geography overview Based on geography, the global optical network hardware market is segmented into North America, APAC, Europe, Middle East and Africa, and South America. The report provides actionable insights and estimates the contribution of all regions to the growth of the global optical network hardware market.
North America is estimated to account for 36% of the growth of the global market during the forecast period. The demand for fiber-optic connections from residential and business customers is increasing. The growth of the communications industry is driven by the increasing use of the internet for purposes such as online gaming, social media, video chatting, and online shopping. As a result, there is a high need for bandwidth from metros and urban areas. In addition, the advent of IoT will fuel the demand for seamless data transmission. All these factors are expected to increase the use of optical transport networks, which will drive the regional market's growth during the forecast period
The high demand for data centers is driving market growth.
A rise in investments in data centers is fueling the demand for new optical modules to meet the demand for high bandwidth, low power, and wider reach.
Hence, there is a demand for high duplex throughput to accommodate the growing requirement of data management.
Analytics applications and other complex cloud-based applications need high-speed internet connectivity.
Moreover, data centers owned by enterprises require energy-efficient and high-performance storage infrastructure. Fiber-optic network hardware is a key element of these data centers.
These factors will drive the global market during the forecast period.
Leading trends influencing the market
Emerging new-age technologies and their requirements for scaling business opportunities are key trends in the market.
The growing penetration of the IoT is expected to have a positive impact on the growth of the global market.
IoT needs high-speed connectivity to ensure the delivery of optimum service, which is achieved with the use of a fiber network.
Optical network hardware can also enable cost-effective scaling options for internet infrastructure to accommodate the growing network traffic.
Such factors are expected to support the growth of the global market during the forecast period.
Major challenges hindering the market growth
The lack of OTN standards is challenging market growth.
Growth, expansion, and interconnection across networks have led to issues related to standardization.
There is a lack of a common mapping structure, which has compelled carriers to de-multiplex client traffic into the lowest form at the carrier boundaries.
In addition, the non-availability of standard fault detection and alarm indication indicates that faults cannot be communicated to other portions of the network.
As a result, consumers complain about poor signals, and carriers have no knowledge about the fault.
Such concerns hinder the functioning of a network and the selling of mission-critical services, which will impede the market's growth during the forecast period.
The optical switches market is estimated to grow at a CAGR of 11.38% between 2022 and 2027. The size of the market is forecasted to increase by USD 4,896.63 million. This report extensively covers market segmentation by application (data communications, telecommunications, and others), type (large enterprise and SMEs), and geography (APAC, North America, Europe, Middle East and Africa, and South America).
The passive optical LAN market size is expected to increase by USD 21.85 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 17.10%. This report extensively covers passive optical LAN market segmentation by component (optical line terminal, optical splitter, and optical network terminals) and geography (APAC, North America, Europe, South America, and MEA).
Optical Network Hardware Market Scope
Report Coverage
Details
Page number
168
Base year
2022
Historic period
2017-2021
Forecast period
2023-2027
Growth momentum & CAGR
Accelerate at a CAGR of 7.43%
Market growth 2023-2027
USD 6,074.53 million
Market structure
Fragmented
YoY growth 2022-2023 (%)
6.73
Regional analysis
North America, APAC, Europe, Middle East and Africa, and South America
Performing market contribution
North America at 36%
Key countries
US, China, India, Germany, and UK
Competitive landscape
Leading vendors, market positioning of vendors, competitive strategies, and industry risks
Key companies profiled
Adtran Inc., ADVA Optical Networking SE, ALE International, Ciena Corp., Cisco Systems Inc., E.C.I. NETWORKS INC., Ekinops SA, FiberHome Telecommunication Technologies Co. Ltd., Fujitsu Ltd., Huawei Technologies Co. Ltd., II-VI Inc., Infinera Corp., Juniper Networks Inc., NEC Corp., Nokia Corp., Padtec Holding S.A., TE Connectivity Ltd., Tejas Network Ltd., Telefonaktiebolaget LM Ericsson, and ZTE Corp.
Market dynamics
Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period.
Customization purview
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.
Exhibit 152: Juniper Networks Inc. - Product / Service
Exhibit 153: Juniper Networks Inc. - Key offerings
12.13 NEC Corp.
Exhibit 154: NEC Corp. - Overview
Exhibit 155: NEC Corp. - Business segments
Exhibit 156: NEC Corp. - Key news
Exhibit 157: NEC Corp. - Key offerings
Exhibit 158: NEC Corp. - Segment focus
12.14 Nokia Corp.
Exhibit 159: Nokia Corp. - Overview
Exhibit 160: Nokia Corp. - Business segments
Exhibit 161: Nokia Corp. - Key offerings
Exhibit 162: Nokia Corp. - Segment focus
12.15 TE Connectivity Ltd.
Exhibit 163: TE Connectivity Ltd. - Overview
Exhibit 164: TE Connectivity Ltd. - Business segments
Exhibit 165: TE Connectivity Ltd. - Key offerings
Exhibit 166: TE Connectivity Ltd. - Segment focus
12.16 Telefonaktiebolaget LM Ericsson
Exhibit 167: Telefonaktiebolaget LM Ericsson - Overview
Exhibit 168: Telefonaktiebolaget LM Ericsson - Business segments
Exhibit 169: Telefonaktiebolaget LM Ericsson - Key news
Exhibit 170: Telefonaktiebolaget LM Ericsson - Key offerings
Exhibit 171: Telefonaktiebolaget LM Ericsson - Segment focus
12.17 ZTE Corp.
Exhibit 172: ZTE Corp. - Overview
Exhibit 173: ZTE Corp. - Business segments
Exhibit 174: ZTE Corp. - Key news
Exhibit 175: ZTE Corp. - Key offerings
Exhibit 176: ZTE Corp. - Segment focus
13 Appendix
13.1 Scope of the report
13.2 Inclusions and exclusions checklist
Exhibit 177: Inclusions checklist
Exhibit 178: Exclusions checklist
13.3 Currency conversion rates for US$
Exhibit 179: Currency conversion rates for US$
13.4 Research methodology
Exhibit 180: Research methodology
Exhibit 181: Validation techniques employed for market sizing
Exhibit 182: Information sources
13.5 List of abbreviations
Exhibit 183: List of abbreviations
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