Coherent Optical Equipment Market Research Report | Industry Trends &Size USD 37.18 Billion by 2026

The coherent optical equipment market was valued at $18.64 billion in 2018 and is anticipated to rise to $37.18 billion by 2026, at a CAGR of 9.4%.

Any of the optical network's coherent equipment that supports 100G+ information transmission speed falls under this category. The coherent optical apparatus offers substantial dispersion mitigation, spectrum shaping, programmability, and high-gain soft-decision forward error correction. By supporting several baud rates and modulation formats, it increases network flexibility and programmability.

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What are factors driving coherent optical equipment market?

• Increasing demand for high-speed data transmission: The demand for high-speed data transmission is increasing, driven by trends such as cloud computing, big data, and video streaming. Coherent optical equipment enables high-speed transmission over long distances, making it ideal for applications such as data center interconnect (DCI) and long-haul telecommunications.

• Advancements in technology: Advancements in technology, such as silicon photonics and coherent DSP (digital signal processing) are enabling the development of more powerful and efficient coherent optical equipment.

• Growing adoption of 5G networks: The adoption of 5G networks is driving the demand for coherent optical equipment, as it provides the high-speed, low-latency, and reliable connectivity required by 5G applications.

• Increasing demand for network virtualization: The demand for network virtualization is increasing, and coherent optical equipment is playing a key role in enabling virtualized networks by providing high-speed connectivity between virtual network functions (VNFs).

• Growing demand for cloud-based services: The growing demand for cloud-based services is driving the need for high-speed data transmission between data centers, and coherent optical equipment is increasingly being used for DCI applications.

• Rising demand for energy-efficient equipment: Energy efficiency is becoming an increasingly important consideration in the design of coherent optical equipment, and vendors are developing more efficient equipment to reduce energy consumption and operating costs.

• Government initiatives and investments: Governments around the world are investing in the development of high-speed communication networks to support economic growth and development, and this is driving the adoption of coherent optical equipment.

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What are key trends in coherent optical equipment market?

• Adoption of 800G technology: Vendors are developing and deploying 800G coherent optical equipment, which offers higher data rates and improved spectral efficiency, enabling higher capacity over existing infrastructure.

• Migration to higher-speed coherent technology: The market is moving towards higher-speed coherent technology, such as 400G, 600G, and 800G, to meet the growing demand for high-speed data transmission.

• Growing demand for disaggregated solutions: Disaggregated solutions, which separate hardware and software components, are becoming increasingly popular in the coherent optical equipment market, as they offer greater flexibility and customization options.

• Increasing use of automation and software-defined networking (SDN): Automation and SDN are being increasingly used in coherent optical equipment to improve network programmability, reduce operating costs, and simplify network management.

• Expansion of DCI and metro network applications: The demand for high-speed data transmission is driving the expansion of DCI and metro network applications, and coherent optical equipment is playing a key role in enabling these applications.

• Growing use of coherent pluggable modules: Coherent pluggable modules, which can be easily plugged into existing network equipment, are becoming increasingly popular in the coherent optical equipment market, as they offer greater flexibility and ease of deployment.

• Advancements in silicon photonics technology: Silicon photonics technology is advancing rapidly, enabling the development of more powerful and efficient coherent optical equipment, and reducing costs.

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Due to the high convergence of new social media platforms and applications that have increased network traffic in the region, North America dominated the market trends for coherent optical equipment overall in 2018 and is predicted to do so again throughout the projection period.

However, during the projection period, Asia-Pacific is anticipated to have the greatest growth rate. The beginning of the digital transformation and the large presence of telecom operators who are extending their 5G infrastructure in the region are factors encouraging the growth of the Asia-Pacific coherent optical equipment market. The market expansion in Asia-Pacific is also being fueled by wealthy customer demand for high-speed internet and supportive government measures towards building network infrastructure.

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Some of the key market players profiled in the report include 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.

Players operating in the market have witnessed lucrative opportunities for high spectrum networking solutions and services especially due to digitalization. This study includes the coherent optical equipment market analysis, trends, and future estimations to determine the imminent investment pockets.

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