Optical Network Hardware Market by Type (WDM and SONET/SDH), Application (Broadband Infrastructure, Datacentre, Fiber Optic Networks, Smart Cities, and Others), and Organization Size (Large Enterprises and Small & Medium-Sized Enterprises (SMEs)) : Global Opportunity Analysis and Industry Forecast, 2020–2027
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COVID-19
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An optical network hardware connects computers (or any other device which can generate or store data in electronic form) using optical fibers. Â Optical fibers are essentially very thin glass cylinders or filaments which carry signals in the form of light (optical signals). The factors encouraging the demand of optical network hardware are tremendous growth of connected users online and more bandwidth requirements for intensive network applications, increase in demand for data centers. Advantages of optical network hardware includes high speed capability, low signal attenuation, low signal distortion, low power requirement, low material usage, small space requirements, low cost, and immunity to electrical interference. These benefits are encouraging organizations to adopt optical network, driving the demand of optical network hardware market.
Market scope and structure analysis:
        Report Metric |                       Details |
 Market size available for years |  2020–2027 |
 Base year considered |  2019 |
 Forecast period |  2021–2027 |
 Forecast units |  Value ($) |
 Segments covered | Type, Application, Organization Size, and Regions |
 Regions covered | North America (U.S. and Canada), Europe (Germany, UK, France, and the Rest of Europe), Asia Pacific (China, Japan, India, and the Rest of Asia Pacific), Latin America (Brazil, Mexico, and the Rest of LATAM) and The Middle East and Africa |
 Companies covered | Major players analyzed in the market include Alcatel-Lucent Enterprise, Cisco Systems, Inc., Fujitsu Limited, Huawei Technologies Co., Ltd., Juniper Networks, Inc., NEC Corporation, Nokia Corporation, TE Connectivity, Telefonaktiebolaget LM Ericsson, and ZTE Corporation. |
COVID-19 Scenario Analysis:
- During Covid- 19 people are working remotely and to provide seamless experience to end users network providers are scaling up their agility and flexibility of data connectivity. Thus, organizations requires single mode fiber (OS2) and multimode fiber (OM4) cable, as well as Category 6A solutions, to increase information capacity and bandwidth to facilitate the data transfer between end users. It is expected to positively impact the optical network market growth.
- Due to the Covid-19 pandemic, companies have witnessed the need for network flexibility and scalability improvisation to facilitate remote working. Around the world, top communication service providers (CSPs) and their enterprise customers have had to speed up connectivity across the board to accommodate the group of remote teleworkers and other forms of online business activity flooding wide area networks.
- As home data consumption grows and the home Wi-Fi networks operate at enterprise levels, the need of the fibre network is rising in India. The government needs to accelerate fibre deployment across the country through incentives and investments to ensure that the country benefits from reliable and faster connectivity.
Top impacting factors: Market Scenario Analysis, Trends, Drivers and Impact Analysis
The adoption of cloud services, use of connected virtual devices, and integration of mobile devices with network services & Wi-Fi are some of the prominent factors behind the optical network hardware market growth. Rise in demand of data centers and increase in adoption of fiber optic cables in organizations is driving the growth of optical network hardware market. An increase in demand of high bandwidth services, adoption of IoT technology, and usage of internet for personal and commercial purpose by end users are also boosting the optical network hardware market growth. Also, advancement in optical network technologies such as reconfigurable optical drop/add multiplexers (ROADM) and wavelength-division multiplexing are driving the growth of optical network hardware market. Currently, many applications have transformed from function specific dedicated hardware platforms to virtualized services deployed over cloud data centres that is increasing the demand for the optical network hardware market. However, lack of Infrastructure and high cost of transition & maintenance is hindering the growth of global optical network hardware market. Contrarily, increasing penetration of internet services, increase in investments for R&D activities in optical network market, and growth of big data analytics are expected to drive the growth of optical network hardware market in the forecasted years.
Emergence of reconfigurable optical drop/add multiplexers (ROADM)
Reconfigurable optical drop/add multiplexers (ROADM) fit in perfectly with the growing demand of consumers for connections that are highly scalable, software-enabled, and more automated. The optical networking technology speeds up service provisioning and enhance network and service availability using software control. Moreover, ROADMs curb the need for performing cost-intensive optical-electronic-optical (OEO) conversion within the network, thus, reducing capital costs for the organizations driving the demand of optical network hardware market in the forecasted years.
Growing adoption of wavelength-division multiplexing (WDM)
Wavelength-division multiplexing helps in integrating multiple number of optical fiber carrier signals into a single fiber optic cable by using different wavelengths of light. It provides multiple wavelengths in a single fiber cable. For organizations, it delivers benefits like full duplex transmission, similar optical network hardware components, and also provides high security, driving its demand in the market. The multiplexing offers an additional benefit of higher bandwidth through achieving the high-speed internet across the optical fiber channel spread across area.Â
Key segments covered:
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Key benefits of the report:
- This study presents the analytical depiction of the global optical network hardware industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global optical network hardware market share.
- The current market is quantitatively analyzed from 2020 to 2027 to highlight the global optical network hardware market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.Â
- The report provides detailed global optical network hardware market analysis based on competitive intensity and how the competition will take shape in coming years.
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