Optical Network Hardware Market Research Report- Forecast 2027

Global Optical Network Hardware Market, By Equipment (WDM, SONET/SDH), By Application (Datacenter, Smart Cities, Broadband Infrastructure, Fiber Optic Network) - Forecast 2027

ID: MRFR/ICT/4000-CR | February, 2018 | Region : Global

Market Overview


Global Optical Network Hardware Market size is poised to expand at 11% CAGR over the forecast period (2018-2023), according to Market Research Future (MRFR) in its latest report. It can reach a size of USD 32 Billion by 2023. Optical networking is a communication technology that transmits information through light. The hardware used in the technology are LEDs, lasers, and optical amplifiers. Increasing demand for high bandwidth services and the reliance of fiber optical cables can propel the potential for the global optical network hardware market. Increased spending by cloud and colocation operators on packet switches and fiber optic cables are likely to widen the potential of the market.


COVID-19 Analysis


The COVID-19 pandemic has disrupted the operations of the global optical network hardware. The effects of the pandemic and lockdown restrictions enforced by governments have dampened the demand for hardware. Home schooling and online education requires seamless connectivity for ensuring the education of children and adults and can act as a viable market proponent. Low tolerance for latency can bode well for the market. Furthermore, rise of online shopping during the pandemic has seen a surge with ecommerce platforms requiring good speeds for keeping customers engaged. The demand for constant end-to-end latency combined with maintaining interaction with users can drive the need for optimal network hardware.


Rise of virtualization and cloud computing are likely to threaten the market demand for 2020. But upgrades to network architecture, spending on WDM equipment, and need for bandwidth for broadband services and IP video can provide relief to the market.


Market Dynamics



  • Drivers


Growing Demand for Fiber Optic from Data Centers


The use of high bandwidth internet and rising use of cloud are likely to drive the demand for fiber optic cables, which in turn can bolster the demand in the global optical network hardware market. Data centers require reliable components to cater to the demanding requirements of cloud and preserving the physical infrastructure of the network. Aggregation of high-speed switches for supporting large servers can bode well for the market. The transformation of applications from hardware driven entities to virtualized offerings within cloud data centers can be opportune for the market. Proliferation of mobile services, dependence of connected devices, and dependence on 3G and 4G services can drive the market demand over the forecast period.



  • Opportunities


Increased FTTH Broadband Internet Penetration


Fiber-to-the-home (FTTH) is pivotal for providing internet services to millions of homes. According to the Fiber Broadband Association (FBA) in the U.S., it has connected more than 46.2 million homes in the U.S. Establishment of broadband infrastructure for providing citizens sheltering from the pandemic a medium for earning from online sources can drive the demand for optical network hardware. Telehealth is likely to drive the highest demand as citizens increasing look at online consultations. Rise of virtual healthcare can positively impact the market. The use of internet for streaming content and attending video conferences are new opportunities for the market. Government policies are being rolled out for connecting rural communities through the Rural Digital Opportunity Fund as well as new spectrum ranges being offered for bidding.



  • Restraints


Lack of Infrastructure in Developing and Under-developed Countries


The lack of established infrastructure in developing and under-developed countries can impinge the global optical network hardware market from expansion. Regulations and fluctuating government policies can restrain the market demand.



  • Challenges


Effective Fiber Management


The need for effective fiber management for taking advantage of available ports and ensuring the uptime of data centers can pose a challenge to the market. The need of skilled personnel for maintaining constant use of data services without compromising on speed can lead to huge demand for hardware engineers.


Segment Analysis


By Equipment


WDM to Gain the Lead


Wavelength-division multiplexing (WDM) is estimated to expand at 15% CAGR over the assessment period. It had generated revenue of USD 10 billion in 2017. WDM can carry multiple wavelengths in a single fiber cable. It can provide full duplex transmission and high security to enterprises. Multiplexing allows the hardware to multiply the number of optical fiber carrier signals. The use of 100 Gbps data rate is likely to attract new customers and boost the segment demand over the forecast period.


By Application


Broadband Infrastructure to be Leading Application


The broadband infrastructure application is expected to generate massive revenue for the global optical network hardware market. The growing penetration rate of smartphones and internet can facilitate the trend. The use of fiber-to-the-premises (FTTP) by residential neighborhoods and enterprises can drive the segment demand at 14% CAGR over the forecast period.


Regional Analysis


North America to Dominate Global Market


North America is estimated to dominate the global optical network hardware market. It had generated USD 8 billion in 2017. It can exhibit a 13% CAGR over the forecast period owing to the reliance of customers on fiber networks for conducting daily tasks. The rise of work-from-home and utilization of unified communication applications can trigger the demand for fiber supported broadband networks. The need for seamless connectivity for online learning, streaming of content, and telehealth can bolster the optical network hardware market demand over the forecast period.


APAC to Generate Significant Revenue


APAC is expected to be a major hub for consumer electronic products, healthcare, automotive, and other verticals. This provides the market huge potential for expanding its offerings to increase its customer base. The region is expected to exhibit 16% CAGR over the assessment period. Investments in connectivity solutions and upgrade from 3G to 4G and 5G networking technologies can be lucrative for market players. Adoption of smartphones, demand for connectivity, focus on network quality, and rise of video streaming can facilitate market growth. Large population, funding in R&D, and emergence of big data and cloud computing companies are other factors that can further the ambitions of the global optical network hardware market.


Competitive Landscape


The global optical network hardware market is marked by continuous developments of optical network hardware. Acquisitions, partnerships, mergers, collaborations, and expansions are likely to be witnessed among companies looking to gain the edge in the market.


Key Companies Covered in the Report    


ZTE Corporation (China), Infinera (U.S.), Alcatel-Lucent (France), ADVA Optical Networking (Germany), Cisco Systems (U.S.), Ciena Corporation (U.S.), Huawei Technologies (China), ADTRAN (U.S.), and Ericsson (Sweden) are prominent players of the global optical network hardware market.


Recent Developments



  • Cisco Systems has agreed to acquire Acacia Software in 2021. The deal could be fruitful for the former company in building resilient networks in light of high bandwidth rates required by clients.

  • Iniphi has collaborated with Cisco Systems for developing co-packaged optics for the next-generation of switches. This can be employed in Internet of things applications for extending the battery life and achieving higher data transfer rates. Employment of power over fiber (PoF) schemes for powering electricity grids remotely and improving electrical networks.


Report Scope


The global optical network hardware market report compiled by MRFR illustrates the trajectory of segments and sub-segments as well as supporting factor driving their growth. The report contains a comprehensive summary and explores all opportunities, trends, and threats to be faced by industry leaders in the coming years. It is segmented in the following manner:


By Equipment



  • WDM

  • SONET-SDH


By Application



  • Smart Cities

  • Datacenter

  • Fiber Optic Network

  • Broadband Infrastructure

1 Executive Summary

1.1 Impact Of Optical Networking On Datacenter And Vertical Integration Model 12

2 Scope Of The Report

2.1 Scope Of The Study 14

2.1.1 Research Objectives 14

2.1.2 Assumptions 14

2.1.3 Limitations 14

2.2 Market Structure 15

3 Research Methodology

3.1 Research Process 17

3.2 Primary Research 17

3.3 Secondary Research 17

3.4 Market Size Estimation 18

3.5 Forecast Model 18

4 Market Dynamics

4.1 Introduction 20

4.2 Drivers 21

4.2.1 Growing Demand For Fiber Optic Network From Data Centers 21

4.2.2 Advancement In Li-Fi Wireless Connectivity 22

4.2.3 Increased FTTH Broadband Internet Penetration 23

4.3 Restraints 24

4.3.1 Lack Of Infrastructure In Developing And Under-Developed Countries 24

4.3.2 Higher Cost Of Transition And Maintenance From Existing Cable 25

4.4 Opportunity 26

4.5 Challenges 26

5 Market Factor Analysis

5.1 Supply Chain Analysis 28

5.2 Porter’s Five Force Analysis 29

5.2.1 Threat Of New Entrants 29

5.2.2 Threat Of Rivalry 29

5.2.3 Threat Of Substitute 29

5.2.4 Bargaining Power Of Supplier 30

5.2.5 Bargaining Power Of Buyer 30

6 Global Optical Network Hardware Market, By Equipment

6.1 Introduction 32

6.1.1 WDM (Wavelength-Division Multiplexing) 33

6.1.2 SONET/SDH 33

7 Global Optical Network Hardware Market, By Application

7.1 Introduction 35

7.1.1 Broadband Infrastructure 36

7.1.2 Datacentre 36

7.1.3 Fiber Optic Networks 36

7.1.4 Smart Cities 36

7.1.5 Others 37

8 Global Optical Network Hardware Market, By Region

8.1 Introduction 39

8.2 North America 41

8.2.1 PESTL Analysis 42

8.2.2 U.S. 45

8.2.3 Canada 46

8.2.4 Mexico 47

8.3 Europe 48

8.3.1 PESTL Analysis 49

8.3.2 The U.K 52

8.3.3 Germany 53

8.3.4 France 54

8.3.5 Spain 55

8.3.6 Rest Of Europe 56

8.4 Asia Pacific 57

8.4.1 PESTL Analysis 58

8.4.2 China 61

8.4.3 Japan 62

8.4.4 India 63

8.4.5 South Korea 64

8.4.6 Rest Of Asia Pacific 65

8.5 Rest Of The World 66

8.5.1 PESTL Analysis 67

8.5.2 The Middle East & Africa 70

8.5.3 Latin America 71

9 Competitive Landscape

9.1 Market Evolution 73

9.2 Global Market Share Analysis 73

10 Company Profiles

10.1 Huawei Technologies Co. Ltd. 76

10.1.1 Company Overview 76

10.1.2 Financials 76

10.1.3 Products 76

10.1.4 Strategy 76

10.1.5 Key Developments 76

10.2 Infinera Corporation 77

10.2.1 Company Overview 77

10.2.2 Financials 77

10.2.3 Products 77

10.2.4 Strategy 77

10.2.5 Key Developments 77

10.3 Alcatel - Lucent 78

10.3.1 Company Overview 78

10.3.2 Financials 78

10.3.3 Products 78

10.3.4 Strategy 78

10.3.5 Key Developments 78

10.4 Ciena Corporation 79

10.4.1 Company Overview 79

10.4.2 Financials 79

10.4.3 Products 79

10.4.4 Strategy 79

10.4.5 Key Developments 79

10.5 Cisco Systems 80

10.5.1 Company Overview 80

10.5.2 Financials 80

10.5.3 Products 80

10.5.4 Strategy 80

10.5.5 Key Developments 80

10.6 ADTRAN, Inc. 81

10.6.1 Company Overview 81

10.6.2 Financials 81

10.6.3 Products 81

10.6.4 Strategy 81

10.6.5 Key Developments 81

10.7 ADVA Optical Networking 82

10.7.1 Company Overview 82

10.7.2 Financials 82

10.7.3 Products 82

10.7.4 Strategy 82

10.7.5 Key Developments 82

10.8 Ericsson 83

10.8.1 Company Overview 83

10.8.2 Financials 83

10.8.3 Products 83

10.8.4 Strategy 83

10.8.5 Key Developments 83

10.9 ZTE Corporation 84

10.9.1 Company Overview 84

10.9.2 Financials 84

10.9.3 Products 84

10.9.4 Strategy 84

10.9.5 Key Developments 84


11 List Of Tables

TABLE 1 GLOBAL OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 33

TABLE 2 GLOBAL OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 35

TABLE 3 GLOBAL OPTICAL NETWORK HARDWARE MARKET, BY REGION, 2020-2027 (USD MILLION) 39

TABLE 4 NORTH AMERICA OPTICAL NETWORK HARDWARE MARKET, BY COUNTRY, 2020-2027 (USD MILLION) 43

TABLE 5 NORTH AMERICA OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 44

TABLE 6 NORTH AMERICA OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 44

TABLE 7 U.S. OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 45

TABLE 8 U.S. OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 45

TABLE 9 CANADA OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 46

TABLE 10 CANADA OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 46

TABLE 11 MEXICO OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 47

TABLE 12 MEXICO OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 47

TABLE 13 EUROPE OPTICAL NETWORK HARDWARE MARKET, BY COUNTRY, 2020-2027 (USD MILLION) 50

TABLE 14 EUROPE OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 51

TABLE 15 EUROPE OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 51

TABLE 16 U.K OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 52

TABLE 17 U.K OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 52

TABLE 18 GERMANY OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 53

TABLE 19 GERMANY OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 53

TABLE 20 FRANCE OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 54

TABLE 21 FRANCE OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 54

TABLE 22 SPAIN OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 55

TABLE 23 SPAIN OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 55

TABLE 24 REST OF EUROPE OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 56

TABLE 25 REST OF EUROPE OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 56

TABLE 26 ASIA PACIFIC OPTICAL NETWORK HARDWARE MARKET, BY COUNTRY, 2020-2027 (USD MILLION) 59

TABLE 27 ASIA PACIFIC OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 60

TABLE 28 ASIA PACIFIC OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 60

TABLE 29 CHINA OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 61

TABLE 30 CHINA OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 61

TABLE 31 JAPAN OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 62

TABLE 32 JAPAN OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 62

TABLE 33 INDIA OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 63

TABLE 34 INDIA OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 63

TABLE 35 SOUTH KOREA OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 64

TABLE 36 SOUTH KOREA OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 64

TABLE 37 REST OF ASIA PACIFIC OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 65

TABLE 38 REST OF ASIA PACIFIC OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 65

TABLE 39 REST OF THE WORLD OPTICAL NETWORK HARDWARE MARKET, BY COUNTRY, 2020-2027 (USD MILLION) 67

TABLE 40 REST OF THE WORLD OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 68

TABLE 41 REST OF THE WORLD OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 69

TABLE 42 THE MIDDLE EAST & AFRICA OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 70

TABLE 43 THE MIDDLE EAST & AFRICA OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 70

TABLE 44 LATIN AMERICA OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 71

TABLE 45 LATIN AMERICA OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 71

12 List Of Figures

FIGURE 1 TOP DOWN & BOTTOMUP APPROACH 18

FIGURE 2 FORECAST MODEL 18

FIGURE 3 SUPPLY CHAIN ANALYSIS 28

FIGURE 4 PORTER’S FIVE FORCES ANALYSIS OF GLOBAL OPTICAL NETWORK HARDWARE MARKET 29

FIGURE 5 GLOBAL OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 32

FIGURE 6 GLOBAL OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 35

FIGURE 7 GLOBAL OPTICAL NETWORK HARDWARE MARKET, BY REGION, 2020-2027 (USD MILLION) 39

FIGURE 8 GLOBAL OPTICAL NETWORK HARDWARE MARKET, BY REGION: IMPACT ANALYSIS 40

FIGURE 9 GLOBAL OPTICAL NETWORK HARDWARE MARKET: MARKET SIZE AND MARKET POTENTIAL IN MAJOR COUNTRIES (USD MILLION) 40

FIGURE 10 NORTH AMERICAS OPTICAL NETWORK HARDWARE MARKET PESTL ANALYSIS, BY COUNTRY 42

FIGURE 11 NORTH AMERICA OPTICAL NETWORK HARDWARE MARKET, BY COUNTRIES, 2020-2027 (USD MILLION) 42

FIGURE 12 NORTH AMERICA OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 43

FIGURE 13 NORTH AMERICA OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 44

FIGURE 14 EUROPE OPTICAL NETWORK HARDWARE MARKET PESTL ANALYSIS, BY COUNTRY 49

FIGURE 15 EUROPE OPTICAL NETWORK HARDWARE MARKET, BY COUNTRY, 2020-2027 ( USD MILLION) 49

FIGURE 16 EUROPE OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 50

FIGURE 17 EUROPE OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 51

FIGURE 18 ASIA PACIFIC OPTICAL NETWORK HARDWARE MARKET PESTL ANALYSIS, BY COUNTRY 58

FIGURE 19 ASIA PACIFIC OPTICAL NETWORK HARDWARE MARKET, BY COUNTRY, 2020-2027 (USD MILLION) 58

FIGURE 20 ASIA PACIFIC OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 59

FIGURE 21 ASIA PACIFIC OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 60

FIGURE 22 REST OF THE WORLD OPTICAL NETWORK HARDWARE MARKET PESTL ANALYSIS, BY COUNTRY 67

FIGURE 23 REST OF THE WORLD OPTICAL NETWORK HARDWARE MARKET, BY COUNTRY, 2020-2027 (USD MILLION) 67

FIGURE 24 REST OF THE WORLD OPTICAL NETWORK HARDWARE MARKET, BY EQUIPMENT, 2020-2027 (USD MILLION) 68

FIGURE 25 REST OF THE WORLD OPTICAL NETWORK HARDWARE MARKET, BY APPLICATION, 2020-2027 (USD MILLION) 69

FIGURE 26 GLOBAL MARKET SHARE (%) 73

FIGURE 27 GLOBAL OPTICAL NETWORK HARDWARE MARKET: MAJOR PLAYERS COMPETITIVE SCENARIO 75

Optical Network Hardware Market