Optical Communication and Network Equipment Market Outlook - 2027

An optical communication and network equipment is one of the quickest communication network devices that are used for exchange of information through an optical fiber cable from one end to another in the form of light pulses. This network cable permits large data carrying capacity supporting unlimited bandwidth and longer distance transmission than ordinary cables. Optical network system is preferred in various applications, owing to its feature such as immunity to noise, compact, small size, light weight, easy installation, highly flexible nature, and low pulse dispersion while transmission. 

Optical communication and network equipment are of low cost that lessens chances of being replaced. In addition, these devices are not attractive enough to be subject to fraud. The product standard and quality in the global market is enhanced as it is user-friendly in nature and can be installed by someone with minimum training. Innovations in this industry and global virtualization of services show that this industry is anticipated to face considerable optical communication and network equipment market share in coming years.

Market Scope and Structure Analysis:

Covid-19 Scenario Analysis:

• The COVID-19 outbreak in Wuhan, logistical hub of China, and worldwide has led to shutdown scenario and transportation restrictions in order to contain the spread of the virus. Wuhan alone accounts for 20% of China’s perform capacity in the optical fiber industry and ongoing disruption is causing discernible effect to domestic and overall global supply. Assessment of the likely impact of the virus on the global optic fiber network industry is highly speculative now.
• In April 2020, Cisco reported 22-fold increase in traffic in WebEx video conferencing service after shutdown in China. Most businesses have provided employees with the option to work from home, thus relying on data connectivity to work. 
• According to Indian Brand Equity Foundation (IBEF) In India in the first week of lockdown data usage was estimated to be up by 87% while internet browsing was up by 72%. 
• BlueJeans Network, a company that provides inter-operable cloud-based video conferencing service, also reported traffic surge over 50% since January 2020.
• Microsoft announced 7 times increase of cloud services, owing to worldwide social distancing measures enforced while employees work remotely, migrating more workloads to cloud.

Top Impacting Factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis

Worldwide adoption of virtual services and applications such as cloud computing, need for high transmission networks, rise in number of data centers, owing to change in consumer needs are some of the factors that boost the optical communication and network equipment market analysis. Rise in video-on-demand services and global focus of IT companies on big data analytics supports the optical communication and network equipment market growth. However, intense competition, high initial investments, increase in network complexity, and change in economic and business conditions in various countries lead to disruption and non-consistency in the optical communication and network equipment market growth. 

Furthermore, use of upgraded connectivity solutions from 3G to 4G technology, surge in reliability and affordability of advanced optical components, and growth in investments by governments and other private businesses for R&D activities present new pathways in the optical communication and network equipment industry.

New Product Launches to Boost the Market Growth

Presently, metropolitan area networks are increasingly being built using optical technologies to overcome electronic bottlenecks at network edges. In February 2019, Nokia and Vodafone collaborated to represent high capacity and performance of 5G services using low power and easily-installable RFIC-based nMIMO antennas.

In December 2019, Cisco systems launched its latest innovation called Cisco Silicon One. Cisco Silicon It is first of its kind, unified silicon architecture that can be used in any network in any form. In addition, Cisco 8000 series router, a powerful carrier class router, was introduced, which is made from Silicon One and IOS XR7 operating system. These innovations are set to offer breakthrough in the digital market enabling cost reduction in building and operating mass scale networks to run 5G, video, and cloud services.

Surge in use in Industrial and Automotive Applications

In recent years, optical communication and network equipment has entered the automotive sector. Optical network systems use smart sensors and actuators. It is used for communication between transducers and on-board computer of a vehicle. Installation of communication network system in modern cars mainly deals with entertainment devices like in-car navigation, DVDs as well as cruise control, and other safety systems. 

Adaptive LED lighting in early 2019 is the recent innovation in automobile lighting technology, which serves high-resolution lighting, safety, and convenience purposes. This LED light incorporates improved design and can be used in glare-free high beam and daytime running lights. Surge in demand of electric cars, self-driven autonomous trucks and vehicles prove to be significant factors to boost the usage of highly-efficient optical communication and network devices in the automotive and industrial sector. These sectors uses optical communication and network equipment to promote seamless communication and connectivity between devices and machines, which is lucrative for the optical communication and network equipment market trends. 

Key Segments Covered:

Key benefits of the stakeholders:

• The study gives an analytical overview of optical communication and network equipment market with current trends and future estimations to determine imminent investment pockets.
• The report analyzes information related to key drivers, restraints, and opportunities along with detailed analysis of the overall market.
• The current market is quantitatively analyzed from 2020 to 2027.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market. 

Questions answered in the optical communication and network equipment market research report:

• Who are the leading players in the optical communication and network equipment market?
• What are the current trends that would influence the market in the next few years?
• What are the driving factors, restraints, and opportunities in the market?
• What are the projections for the future that would help in taking further strategic steps?
• What would be the detailed impact of COVID-19 on the market?