Optical Networking and Communications Market - Key Growth Factors and Industry Analysis 2017-2025

Optical networking is a specific means of communication that use various signals encoded onto light for transmitting information among different nodes of a telecommunications network. These operate from a limited range of a local-area network (LAN) or for a wide-area network (WAN), having capability to cross metropolitan and regional areas crossing national, international as well as transoceanic distances. Optical networking and communication relies on optical amplifiers, wave division multiplexing (WDM) and lasers or LEDs for transmission of large quantity data with the help of fiber-optic cables. This form of networking is capable of achieving extremely high bandwidth enabling technology for today’s internet along with communication networks for transmitting vast majority of both human-to-machine and machine-to-machine information. Optical communication network uses infrared radiation transmission (IR) signals for transmitting data.

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An optical communication system in general uses a transmitter that encodes message into an optical signal. After this a channel carries the signal to its destination post which a receiver reproduces the message from the received optical signal. The global market for optical networking and communications network has been segmented on the basis of services, technology and end use industries. Based on services this market has been segmented into training, maintenance, deployment and consulting. In addition to this, on the basis of technology this market has been segmented into synchronous optical networking, fiber channel and wavelength division multiplexing. Aerospace and defense mining, government, transportation, telecom, oil and gas, energy and utilities and healthcare among others formed the end use industries based on which this market has been segmented.

Global Optical Networking and Communications market on the basis of geography has been segmented into North America, Europe, Asia Pacific, Latin America and Middle East and Africa.

One of the biggest advantages for this market would be increased bandwidth provided by photon signals. High frequency of infrared energy allows millions of signals to be compressed onto a single beam with the help of frequency division multiplexing. Moreover, a single strand of fiber helps carry visible light at several different wavelengths with beams having its own set of modulating signals. Optical fiber cables support also allow duplex communications both upstream and downstream simultaneously using two cores further acting as another major driver for this market. With all these factors positively affecting the market it is the presence of certain restraints that limits the market growth. One such factor would be the leakage of signal by bending the fiber cables for hacking information present in these cables. Another important restraint for the market would be the need to shield the fiber cables as well further increasing the overall cost. Besides all these drivers and restraints, it is growing application of optical networking across infrastructure and communication that is likely to provide more opportunities for this market.

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Geographically, Europe formed a major region for this market followed by North America and Asia Pacific. Huge application of fiber optic cables for transmitting information across large distances has been a major factor pushing the growth of this market in Europe and North America. Asia Pacific also accounted one of the fastest growth with India, China and Japan among others being a few important countries contributing to the overall growth. Rise in internet penetration long with growing application of fiber optic cables for various infrastructural purposes has been a few important drivers that is boosting the demand for this market in Asia Pacific region.

Some of the key players that are operating in the global optical networking and communications market include Cisco Systems, Inc. (The U.S.), Verizon Communications Inc. (The U.S.), CIENA Corporation (The U.S.), Fujitsu Ltd. (Japan), JDS Uniphase Corporation (The U.S.), Alcatel-Lucent, Inc. (France), ADVA Optical Networking SE. (Germany), Ericsson Inc. (Sweden), Huawei Technology Co. Ltd. (China), MRV Communications Inc. (The U.S.) among others.

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