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2021
Wavelength Division Multiplexer (wdm) Market

Wavelength Division Multiplexer (WDM) Market

by Type (CWDM and DWDM) and Industry Vertical (IT & Telecommunication, Military & Defense, Oil & Gas, and Medical & Healthcare): Global Opportunity Analysis and Industry Forecast, 2020-2027

Report Code: A09851
Pages: 262
Mar 2021 | 4053 Views
Author(s) : Shantanu S , Vineet K
Tables: 94
Charts: 79
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COVID-19

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The global wavelength division multiplexer (WDM) market size was valued at $3.56 billion in 2019, and is projected to reach $5.61 billion by 2027, registering a CAGR of 6.4% from 2020 to 2027. Wavelength division multiplexer (WDM) is a technique in fiber-optic communications for multiplexing multiple optical carrier signals via a single optical fiber channel by changing the wavelengths of laser lights. In addition, it enables communication in both directions of the fiber cable. The network operators these days have to meet the rise in requirements of bandwidth as there is tremendous rise in internet usage by all sectors. Therefore, WDM being the fundamental block for high capacity optical communications network is used by network providers to meet the increase in demand and yield maximum capacity.

COVID-19 scenario to impact Oil & Gas segment in the Wavelength Division Multiplexer Market negatively.

The global wavelength division multiplexer market share is anticipated to witness significant growth over the forecast period. Factors, such as a demand for high capacity network and effective communication; rapid growth in number of internet users as well as network traffic around the globe; and surge in telecommunication applications, drive the growth of the market. In addition, new product launches are projected to flourish the WDM market. However, the cost associated with dark fiber network may hamper growth of the market. On the contrary, rise in advanced network infrastructure and increase in cloud and IP traffic are anticipated to create lucrative opportunities for the market growth.

Wavelength-Division-Multiplexer

The global wavelength division multiplexer industry is segmented into type, industry vertical, and region. By type, the market is bifurcated into CWDM and DWDM. The industry vertical segment is divided into IT & telecommunication, military & defense, oil & gas, and medical & healthcare.

Wavelength Division Multiplexer (WDM) Market
By Type

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DWDM is projected as one of the most lucrative segments.

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Region-wise, the wavelength division multiplexer market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (Sweden, France, Germany, Russia, and Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). APAC is the largest segment and the region is expected to develop at a significant growth rate during the conjecture time frame. This is attributed to surge in evolution of smart communication devices such as desktops and smartphones. China is one of the highest contributors to the APAC wavelength division multiplexer market share. Increase in adoption of fiber optics cables to transmit signals by ensuring least amount of loss is growing across the country. For instance, as per the China Internet Network Information Center (CNNIC) 2019 survey, in 2016, 80% of China’s broadband connection was by fiber; however, in 2019, this figure reached 91%.

Leading wavelength division multiplexer (WDM) market players, such as Huawei Technologies, Cisco Systems, Inc., and Fujitsu Ltd., focus their investment on technologically advanced and cost-effective products. For instance, in June 2018, Huawei Technologies launched OSN 9800 M24, the next-generation enterprise backbone flagship WDM product. In addition, Huawei discussed the emerging requirements and development trends of optical transmission technologies with Latin American and European partners in CEBIT 2018, the international consumer electronics and communications expo. Such advancements are expected to significantly propel the wavelength division multiplexer (WDM) market growth.

Wavelength Division Multiplexer (WDM) Market
By Industry Vertical

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IT & Telecommunication segment is expected to secure leading position during forecast period.

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Top Impacting Factors

The prominent factors that impact the wavelength division multiplexer industry are increasing demand for high capacity network and effective communication; rapid growth in number of internet users as well as network traffic around the globe; and surge in telecommunication applications. In addition, new product launches are projected to flourish the WDM market. However, the cost associated with dark fiber network may hamper growth of the market. On the contrary, rise in advanced network infrastructure and increase in cloud and IP traffic are anticipated to create lucrative opportunities for the market growth.

Competition Analysis

Competitive analysis and profiles of the major wavelength division multiplexer (WDM) market players, such as Alcatel-Lucent, Ciena Corporation, Fujitsu Ltd., Huawei Technologies, ZTE, Cisco Systems, Inc., Infinera Corporation, ADVA Optical Networking SE, Aliathon Technology Ltd., and ADTRAN Inc., are studied.

Wavelength Division Multiplexer (WDM) Market
By Region

2027
Asia-pacific 
North America
Europe
LAMEA

Europe would exhibit the highest CAGR of 8.1% during 2020-2027

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Covid-19 Impact Analysis

  • The overall effect of the COVID-19 outbreak is impacting the production process of several industries of the wavelength division multiplexer market revenue. As governments of different provinces have already
  • announced total lockdown and temporarily shutdown of industries, the overall production process is being adversely affected. This hinders the global WDM market growth.
  • The COVID-19 pandemic is impacting the society and overall economy across the global. The impact of this outbreak is growing day-by-day as well as affecting the supply chain. The crisis is creating uncertainty in the stock market, falling business confidence, massively slowing the supply chains, and increasing panic among the customer segments. 
  • Asian and European countries under lockdowns have suffered major loss of business and revenue due to the shutdown of manufacturing units in the region. The operations of production and manufacturing industries have been heavily impacted by the outbreak of COVID-19, thereby, leading to slowdown in the growth of the WDM market in 2020.  
  • The impact of COVID-19 on the wavelength division multiplexer (WDM) market is temporary as the production and supply chain of WDM have been stalled. However, once the situation improves, production, supply chains, and demand for this product are gradually going to increase.

Key Benefits For Stakeholders

  • This study comprises analytical depiction of the global wavelength division multiplexer market along with the current trends and future estimations to depict the imminent investment pockets.
  • The overall wavelength division multiplexer market analysis is determined to understand the profitable trends to gain a stronger foothold.
  • The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
  • The current wavelength division multiplexer (WDM) market forecast is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
  • Porter’s five forces analysis illustrates the potency of the buyers and the WDM market share of key vendors.
  • The report includes the market share of key vendors and the wavelength division multiplexer market trends.

Wavelength Division Multiplexer (WDM) Market Report Highlights

Aspects Details
By Type
  • CWDM
  • DWDM
By Industry Vertical
  • IT & Telecommunication
  • Military & Defense
  • Oil & Gas
  • Medical & Healthcare
By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Sweden, France, Germany, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
Key Market Players ADVA Optical Networking, ADTRAN, Inc, ALCATEL-LUCENT, .Aliathon Technology, Ciena Corporation, Cisco System Inc., Fujitsu Optical Components Limited, Huawei Technologies Co., Ltd., Infinera Corporation, ZTE Corporation
 

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Wavelength division multiplexer (WDM) is a technique in fiber-optic communications for multiplexing multiple optical carrier signals via a single optical fiber channel by changing the wavelengths of laser lights. In addition, it enables communication in both directions of the fiber cable. WDM being the fundamental block for high capacity optical communications network is used by network providers to meet the increase in demand and yield maximum capacity.

The global wavelength division multiplexer market is anticipated to witness significant growth over the forecast period. Factors, such as an increasing demand for high capacity network and effective communication; rapid growth in number of internet users as well as network traffic around the globe; and surge in telecommunication applications, drive the growth of the market. In addition, new product launches are projected to flourish the WDM market. However, the cost associated with dark fiber network may hamper the growth of the market. On the contrary, rise in advanced network infrastructure and increase in cloud and IP traffic are anticipated to create lucrative opportunities for the market growth.

Leading WDM market players, such as Huawei Technologies, Cisco Systems, Inc., and Fujitsu Ltd., are focusing their investment on technologically advanced and cost-effective products. For instance, in June 2018, Huawei Technologies launched the OSN 9800 M24, the next-generation enterprise backbone flagship WDM product. In addition, Huawei discussed the emerging requirements and development trends of optical transmission technologies with Latin American and European partners in CEBIT 2018, the international consumer electronics and communications expo. Such advancements are expected to significantly propel the market growth.

The key players of the market focus on introducing technologically advanced products to remain competitive in the market. Product launch, acquisition, collaboration, and partnership are expected to be the prominent strategies adopted by the market players. For instance, in September 2018, Fujitsu Laboratories Ltd. developed an ultra-high capacity wavelength-division multiplexing system. This system is projected to considerably expand the transmission capacity of optical fibers in optical networks connecting datacenters.

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