Optical Communications Market Research Report- Global Forecast 2027

Optical Communications Market, By Component (Optical Switches, Optical Transceivers, Optical Amplifiers, Optical Circulators, Optical Splitters, Optical Fibers), Technology, Synchronous Optical Networking (SONET), Fiber Channel, Wavelength-Division Multiplexing (WDM)), Application, End Users - Forecast till 2027

ID: MRFR/SEM/3242-HCR | February 2021 | Region: Global | 100 pages

Optical Communications Market Overview:


The global optical communications market is growing at a CAGR of 9% for the period between 2017 to 2023. Since the internet has taken over a major percentage of the world communication system of the present times, it is safe to say that the future of optical communication is bright enough. Several giant end-user industries are pushing the market to grow at a remarkable speed. The improvements in fiber optic technology, networking solutions, surveillance, and telecommunication, etc are great opportunity points for the future of the optical communication market. 

The system of optical communication is quite straightforward in the case of theory. There are encoders or modifiers, transmitters or transmitting mediums, and decoders or receivers involved in the process. There are various kinds of instruments such as switchers, circulators, splitters, amplifiers, etc that use the optic transmission solutions at present times. The journey of optical communication started with sir Alexander Graham Bell’s ‘photophone’ in the 1880s. Many experts believe that it was the precursor to modern fiber optic technology. The present growth of the optical communications market is phenomenal. The progressions in the fields of telecom, surveillance, internet, etc are creating magnificent growth opportunities for the communication market as well.              

COVID-19 Analysis: 

The unprecedented occurrence of COVID-19 has shocked the whole world. Apart from the disastrous conditions in the public health of citizens of almost every nation, the pandemic has imposed many kinds of damage into the lives of people. The social distancing measures have forced the nations to call for total shutdowns or lockdowns for months during the waves of COVID-19. The optical communications market industry has faced great challenges due to the lockdowns.

For starters, the industries couldn't carry on manufacturing and distribution during the period. So, the industry has to go through a pause during that time. Also, the lack of qualified staff in the market due to the lockdowns has invited another degree of inconvenience for the optical communications market growth. The economies of major countries have been exposed to dire losses and a decrease in market size. This dramatic shrinking of the market had forced the communication industry to suffer also. 

Optical Communications Market Dynamics:

Drivers:

The potential of seamless connectivity for long-distance networking is a massive market pusher for the optical communications networking market. The fiber optic transmission is much faster than the copper wired electrical transmission. Since the technology uses infrared light for transmitting electronic data, it gives a more satisfying experience to the user. In the case of long-distance transmission, this technology helps to create reliable, secure, and fast networking systems for end-users. The increasing capacity of high-speed data transmission is one of the steady pushers for the market to grow. Expansion of the internet user’s market, with limitless bandwidth capacity, is promoting the market growth for optical communication. 


Since the technology uses light-based transmission, the communication does not get interrupted or manipulated by electromagnetic interferences. The need for secure, fast, and seamless connectivity is increasing amongst major and giant industries. These end-users are investing in optical technologies more than ever. The technological advantages of optical fiber communication are helping the end-user industries to improve their operations as well. This co-dependency factor is a market motivator for the optic communication industry.       

Opportunities:

Several advancements are going on in the communication, electronics, and IT industry all the time. Latest computing in the internet medium is building new avenues for the optic communication market as well. Advancements in the telecom industry, i.e., the installation of 5G network towers all over the world is going to be a great opportunity point. With increasing focus on smart devices, the internet of things (IoT) technology is creating a positive atmosphere for the optical communications system as well. Innovation in strong telecom infrastructure, fiber optic communication is going to reach new heights for better efficiency in the operating systems of end-user industries. Wireless smart devices, cloud computing, artificial intelligence, etc are at the doorsteps of the market.

The fiber optic is necessary for 5G spectrum development in different parts of the world. Penetration of smart devices in a lot of countries will provoke the need for optical mobile communication in the future as well. In the medical and healthcare industry also, there is a tremendous growth potential for the market. A lot of advancements are going on in the fields of astronomy and space science. In satellite technology, space communication, there is a lot of opportunities for the market to grow in the international market.     

Restraints:

The costing is a major obstacle in the way of optical communication market size growth. Fiber optic technology is expensive. In the material form, fiber optics are not very spendy. But to assemble the fragile material in a long-lasting and secure coating and create extensive cables out of them, is pretty expensive. Due to the manufacturing cost, the overall expenditure on optic communication technology is high. That is a prime reason why not all markets can afford it right now. 

Also, there is an astonishing lack of skilled personnel on the technology. Fiber is a sophisticated medium that demands a lot of proficiency to handle properly. To increase productivity in the market, there must be adequate availability of trained staff who are capable of installing, managing, maintaining, and servicing the optical communication devices. The communication industry does not have any international standardized protocol for the international market right now. This factor is a major restraint in the path of market growth.    

Challenges:

The advancements in the technology of IoT, AI, or virtual reality are a future possibility for the market, but for the present situation, it is a major challenge also. The present setup of the optical communication technologies is not advanced enough to incorporate the complex integrations of IoT or AI. There are many technological barriers in that direction. For now, finding the solutions for higher integrations in the system is the major challenge in front of the market.

Also, the threat of optic fiber hacks during transmission is enormous. The chances of physical damage to the optic fibers, network complexities are a big challenge for the market as well.    

Cumulative Growth Analysis:

The growth of the global market for the optical communications industry is positive and vibrant. The market is growing at a CAGR of 9% for the forecast period of 2017 to 2023. The growth of the market has been steady for the last couple of years. The maximum revenue is collected from the IT and telecommunication industries. The internet revolution has been prompting growth for all the end-user verticals. Which leads to the prosperity of the entire market as well. According to the latest optical communications market analysis, the expected net valuation of the market is going to be USD 24 billion by the end of the forecast period.      

Value Chain Analysis:

The communication market completely relies on the market demand of the products. For that, the availability of the products is highly important through the distribution channels. The products are available through retail markets, regional service providers, authorized third-party enterprises, etc. The optical communications and networking market is completely dependent on the efficiency of these distribution channels. 

Optical Communications Market Segment Overview:

The global market of optical communication solutions can be classified into different markets segments. Based on the technology, components, end-users, application, and region, the market can be divided into further subsegments as well. 

Optical Communications Market Segments Based on Components: 


  • Optical Switches 

  • Optical Transceivers

  • Optical Amplifiers 

  • Optical Splitters 

  • Optical Circulators 

  • Optical Fibers

  • Others  


Optical Communications Market Segments Based on Technology:


  • Synchronous Optical Networking 

  • Fiber channel 

  • Wavelength division multiplexing 

  • Others 


Optical Communications Market Segments Based on Application:


  • Datacenter 

  • Telecom

  • Enterprise 

  • Introduction

  • Others


Optical Communications Market Segments Based on End-Users:


  • Government 

  • Healthcare 

  • Cloud

  • Energy and utilities 

  • BFSI

  • IT and Telecommunications

  • Defense

  • Aerospace

  • Others


Optical Communications Market Segments Based on Region:


  • North America 

  • Europe 

  • Asia Pacific

  • Rest of the world 


Optical Communications Market Regional Analysis: 

The optical communications systems market is divided into North America, Europe, Asia Pacific (APAC), etc regions. The North American region holds the largest market share in the world. The US, Canada, Mexico, UK, Germany, France, etc countries are progressive in technology. Although, the APAC countries like India, China, etc are growing fast too.  


Optical Communications Market Competitive Landscape: 

The major optical communication companies are – 



  • Vodafone Group (UK)

  • Deutsche Telekom AG (Germany) 

  • Telefonica SA (Spain) 

  • Verizon Communications (US) 

  • AT & T Inc (US) 

  • Singapore Telecommunications Ltd (Singapore) 

  • Maxim Integrated (US)


Optical Communications Market Recent Developments:

In 2017, the Vodafone Group had collaborated with Telefonica SA for open network access. Vodafone expanded its fiber network coverage with this agreement to cater to fast internet and TV services. This is big news in the optical networking and communication market. 

Optical Communications Market Report Overview: 
This report discusses the global market growth, size, trends, etc aspects in detail for making better strategies for the industry.

Optical Communications Market Report Period:


  • Historic: 2017

  • Base: 2021 

  • Forecast: 2023


Optical Communications Market Report Demographic:


  • North America 

  • Europe 

  • APAC



Frequently Asked Questions (FAQ) :


Global optical communications market can reach a value of USD 24 billion by 2023.

Global optical communications market is expected to display a CAGR of 9% from 2017 to 2023.

Massive demand for high data speeds and next-generation electronic devices can drive the global optical communications market.

North America can lead the global optical communications market.

Singapore Telecommunications Limited, AT&T Inc., Orange, Telefonica, S.A, Telstra Corporation Ltd., Telkom SA SOC Ltd., Vodafone Group PLC, Verizon Communications, Deutsche Telekom AG, Hetzner Online GmbH, and Maxim Integrated are key players of the global optical communications market.