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2020

Coherent Optical Equipment Market

Coherent Optical Equipment Market Size, Share, Competitive Landscape and Trend Analysis Report by Technology, Equipment, Application and End User : Global Opportunity Analysis and Industry Forecast, 2019-2026

IC : Software and Services

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Author's: Sneha Korad and Makarand Sinnarkar | Onkar Sumant
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Coherent Optical Equipment Market Statistics - 2026

The global coherent optical equipment market size was valued at $18.64 billion in 2018, and is projected to reach $37.18 billion by 2026, growing at a CAGR of 9.4% from 2019 to 2026. The growth of the global market is driven by superior network flexibility and programmability offered by coherent optical equipment by supporting different baud rates and modulation formats. In addition, upsurge in high bandwidth requirements and rise in need to minimize latency issues along with providing smooth transmission of data are the major factors expected to propel the growth of the global market.

Coherent Optical Equipment Market Infographics

North America dominated the overall coherent optical equipment market share in 2018, and is projected to continue this trend during the forecast period. This is attributed to rise in investment in the defense sector to improve the security infrastructure with help of secured coherent optical equipment. In addition, the presence of key players operating in the North America such as Ciena Corporation and Cisco Systems, Inc. significantly contributes toward the growth of the market.

Coherent Optical Equipment Market
By Technology
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100G is projected as one of the most lucrative segments.

Coherent optical equipment is a central device that promotes 1,00G+ speed of information transmission capacity. The inclination toward coherent optical communication has been witnessed to increase, due to improvement in digital coherent receiver ability to employ a variety of spectrally efficient modulation formats. The modulation formats such as the quadrature-amplitude modulation (QAM), M-ary phase-shift keying, and the receiver rely on stable carrier-phase estimation in the digital domain. Owing to this linear transmission, impairments such as group-velocity dispersion (GVD) and polarization-mode dispersion (PMD) of transmission fibers can be equalized via digital signal processing. 

Coherent Optical Equipment Market
By Equipment
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WDM (Wavelength-Division Multiplexer) is projected as one of the most significant segments.

The report focuses on the growth prospects, restraints, and market analysis. The study provides Porter’s five forces analysis of the coherent optical equipment industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the coherent optical equipment market trends.

Coherent Optical Equipment Market
By Application
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Networking is projected as one of the most significant segments.

Segment Review

The global coherent optical equipment market analysis is segmented into technology, equipment, application, end user, and region. By technology, the market is segregated into 100G, 200G, 400G+, and 400G ZR. On the basis of equipment, it is classified into wavelength-division multiplexer (WDM), modules/chips, test & measurement equipment, optical amplifiers, optical switches, and others. The applications covered in the study include networking, data center, and original equipment manufacturer (OEMs). Depending on end user, the market is segregated into service provider, public sector, and industries. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Coherent Optical Equipment Market
By End Users
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BFSI is projected as one of the most significant segments.

The key players profiled in the coherent optical equipment market forecast includes Ciena Corporation, Cisco Systems, Inc., ECI Telecom Ltd, Fujitsu Limited, Huawei Technologies Co., Ltd., Infinera Corporation, NEC Corporation, Nokia Corporation, Telefonaktiebolaget LM Ericsson, and ZTE Corporation.

Coherent Optical Equipment Market
By Region
2026
North America 
Europe
Asia-Pacific
LAMEA

Asia-Pacific would exhibit the highest CAGR of 29% during 2019-2026.

Top Impacting Factors    

Rise in demand for high-speed bandwidth across the globe acts as a key driver of the global market. In addition, technological advancements in networking infrastructure across the globe is expected to drive the growth of the global market during the forecast period. Moreover, increase in internet penetration across the globe acts as one of the major factors that is anticipated to boost growth of the global market.
However, lack of efficient fiber networks in major countries restrains the deployment of fiber backhaul to support small cells. On the contrary, proliferation of internet and its associated services and products in rural areas is expected to be opportunistic for the market.

Technological Advancements in Networking Infrastructure Across the World

Increase in data consumption and improvement in network coverage across the world have fueled the need for coherent optical equipment. The 5th generation wireless connection is expected to be the next leap in technology, as it has the ability to transmit more data while providing a more steady and reliable connection. This in turn is expected to drive growth of the coherent optical equipment market. In addition, the demand for optical fiber has been increasing, due to shortage of fiber and long-term plans for installation of networks. Thus, network providers have been negotiating directly with fiber manufacturers to secure a long-term supply of optical fiber; for instance, in April 2017, Verizon Communications signed an agreement with Corning for laying a 20 million km. of optical fiber per year from 2018 through 2020. The company has been intending to use this fiber to build its network. 

Surge in Internet Penetration

Consumer video on demand (VoD) traffic, internet video surveillance traffic, and augmented reality (AR) & virtual reality (VR) network traffic have increased from the recent past, due to rise in internet penetration. This in turn is expected to boost the growth of the coherent optical equipment market in the coming years. In addition, emergence of new social media platforms and applications is expected to increase the network traffic, which will drive the demand for coherent optical equipment. Moreover, telecom operators are expanding their 4G infrastructure to accommodate such massive network traffic and deliver strong network bandwidth, which is expected to drive the coherent optical equipment market growth during the forecast period.

Key Benefits for Stakeholders:

  • This study includes the coherent optical equipment market opportunity, analysis, trends, and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and opportunities of the coherent optical equipment industry.
  • The global market size is quantitatively analyzed from 2018 to 2026 to highlight the financial competency of the industry.
  • Porter’s five forces analysis illustrates the potency of the buyers & suppliers in the coherent optical equipment market.

Coherent Optical Equipment Market Report Highlights

Aspects Details
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By Technology
  • 100G
  • 200G
  • 400G+
  • 400G ZR
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By Equipment
  • Wavelength-division Multiplexer (WDM)
  • Modules/Chips
  • Test & Measurement Equipment
  • Optical Amplifiers
  • Optical Switches
  • Others
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By Application
  • Networking
  • Data Center
  • Original Equipment Manufacturers (OEMs)
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By End User
  • Service Provider
  • Public Sector
  • Industries
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By Region
  • North America  (U.S., Canada)
  • Europe  (Germany, UK, France, Rest of Europe)
  • Asia-Pacific  (Japan, China, India, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

Nokia Corporation, Fujitsu Limited, Cisco Systems, Inc., Huawei Technologies Co., Ltd., Telefonaktiebolaget LM Ericsson (Ericsson), INFINERA CORPORATION, ECI Telecom, ZTE Corporation, CIENA CORPORATION, NEC Corporation

Analyst Review

The CXOs of leading companies provide insights regarding the growth of the optical equipment market. According to the CXOs, China serves as the major consumer in the whole world of optical fibers, followed by the U.S. and Japan. With rapidly evolving 5G technology that provides enhanced network connectivity, the coherent optical equipment market is experiencing a strong growth, due to ongoing deployment of 5G network and upcoming fiber-to-the-home (FTTH) network and digital connectivity projects across the globe.

Moreover, emergence of new social media platforms & applications and increase in trend of video-on-demand (VoD) services fuel the network traffic, which, in turn, boosts the growth of the coherent optical equipment market. In addition, rise in consumer demand for high bandwidth and high-speed networking has fueled the need for the deployment of coherent optic equipment to improve the broadband connectivity and increase the transmission capacity, which significantly contributes toward the growth of the global market.

Significant number of industries have been working aggressively in developing new energy plants and innovative digital transmission products, is further expected to fuel the demand for coherent optical fiber communication systems. ,. Furthermore, rise in data traffic on IoT devices, smartphones, and other connected devices is driving the demand for coherent optical equipment across the globe.

Moreover, factors such as advent of industrialization; rise in penetration of internet especially in emerging countries; and adoption of digitalization among telecom industry coupled with upcoming infrastructure enhancements projects in transport, networks, energy, defense, residential, and institutional projects are the major factors expected to drive the growth of the market in the coming years.

The global coherent optical equipment market is highly competitive, due to the strong presence of the existing vendors, which have access to extensive technical and financial resources. This has anticipated top players in the market to gain a competitive edge over their rivals, as they have the capacity to cater to the global market requirements. For instance, in April 2019, Bharti Airtel (Airtel), one of leading telecommunication services provider in India, announced an agreement with Ericsson to expand its VoLTE services in India. The agreement is expected to result in Ericsson Cloud VoLTE solution deployment, a solution to deliver VoLTE services onto the customer data center. The competitive environment in this market is expected to further intensify with increase in technological innovations, product extensions, and different strategies adopted by the key vendors.

Author Name(s) : Sneha Korad and Makarand Sinnarkar | Onkar Sumant
Frequently Asked Questions?

The coherent optical equipment market is estimated to reach $37.18 billion by 2026

The coherent optical equipment market in 2018 was $18.64 billion.

Some of the leading players operating in the coherent optical equipment market includes Ciena Corporation, Cisco Systems, Inc., ECI Telecom Ltd, Fujitsu Limited, Huawei Technologies Co., Ltd., Infinera Corporation, NEC Corporation, Nokia Corporation, Telefonaktiebolaget LM Ericsson, and ZTE Corporation

To get more insights and Competitive landscape.

The coherent optical equipment market is expected to grow at CAGR of 9.40% from 2019 to 2026.

The coherent optical equipment market is estimated to reach $37.18 billion by 2026.

To get company profiles of major key players profiled in the study.

Rise in significance of high speed bandwidth, Technological advancement across the world, and Growing Internet penetration are among some of the major factors expected to drive the market.

Asia Pacifc region possess greater business opportunities in the coming future

Major opportunities for the growth of market in the coming years includes Significant rise in technological advancement and expansion of network infrastructure in rural areas.

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Coherent Optical Equipment Market

Global Opportunity Analysis and Industry Forecast, 2019-2026