Coherent Optical Equipment Market - Snapshot
Coherent optical equipment refers to all the equipment in the optical network which supports 100G+ speed for data transmission. Significant growth in bandwidth requirements to reduce latency issues and provide smooth data transmission is estimated to fuel the growth of the coherent optical equipment market.
Many technological advancements have taken place in the optical network equipment market in recent years. Internet service providers, telecom service providers, public sector, and different industries are extensively using coherent optical equipment due to tremendous growth of internet penetration among the population, and increasing demand for high quality audio and visuals. Therefore, the coherent optical equipment market is expected to expand at a rapid pace in the coming years. Growing need to adopt new IT solutions with modern consumer trends across the world is driving the demand for coherent optical equipment. This is anticipated to propel the market over the forecast period. Moreover, increasing demand for high speed bandwidth from the telecom industry is expected to fuel the growth of the market in the near future. However, high initial investment is anticipated to hinder the growth of the market across the world. The coherent optical equipment market is likely to reach a value of US$ 34,599.0 Bn by 2026 from US$ 15,966.9 Mn in 2017, expanding at a CAGR of 9.1% during the forecast period.
Based on technology, the coherent optical equipment market has been segmented into 100G, 200G, 400G+, and 400G ZR. The 100G segment accounted for significant market share globally in 2017.This segment is projected to maintain considerable market share over the forecast period. Both residential and business customers are demanding high speed bandwidth. The adoption of 100G coherent technology has surged both in long haul networks and metro networks. Coherent optical fiber enables greater network programmability and flexibility by supporting different baud rates and modulation formats. This results in greater flexibility in line rates, with scalability from 100G to 400G and beyond per single signal carrier, delivering increased data transmission throughput at a lower cost per bit. 400G+ technology segment is estimated to expand at a rapid pace during the forecast period with growing demand from the public sector and industries end-use sectors.
Based on equipment, wavelength-division multiplexer (WDM) accounted for leading market share in 2017 followed by optical switches, and is expected to retain its position over the forecast period. WDMs are used to increase capacity of communication in different applications such as access, enterprise communication, backhaul, long-haul, and metro networks. However, optical switches segment is expected to expand at a significant pace over the forecast period from 2018 to 2026. Moreover, test & measurement equipment segment is projected to gain market share in the coming years due to increasing demand for higher capacity communication networks from end-users as well as different industry verticals.
Based on application, networking application in coherent optical equipment accounted for leading market share in 2017 followed by original equipment manufacturers (OEMs), and is expected to retain its position over the forecast period. Networking is a form of optical communication which depends on optical amplifiers, LEDs, lasers, and WDM to transmit data through a channel (usually by optical fiber). It is capable of transmitting data with maximum possible bandwidth and minimum possible losses. However, data center application segment is expected to expand at a significant pace over the forecast period from 2018 to 2026 with increasing internet penetration and growing data traffic along with need for high speed transmission networks.
Based on end-user, the coherent optical equipment market can be categorized into service provider, public sector, and industries. The service provider sector is the prominent user of coherent optical equipment followed by the public sector, due to increasing demand for high speed bandwidth from internet service providers and telecom service providers. The industries sector is projected to expand at a rapid pace over the forecast period due to growing demand for high speed data transmission from different industries such as aviation and railways.
The market in North America is anticipated to contribute significantly to revenue in the near future, followed by Asia Pacific, due to a large base of existing users in the region. North America and Europe are mature regions of the coherent optical equipment market in terms of technical awareness among users. This is likely to contribute to the decline in market share of these regions. Furthermore, the market in APAC and Middle East & Africa is likely to expand at a robust CAGR in the coming years.
Attracted by the increasingly expanding coherent optical equipment market, many small and large scale vendors are investing in coherent optical equipment in order to improve data transmission speed and reduce power consumption and cover a wider area in metros as well as in urban areas. Product innovation and upgrade of research and development are constantly taking place in the coherent optical equipment market. For instance, in January 2017, Infinera Corporation introduced the XTS-3300 and XTS-3600 meshponders for subsea networks, and upgraded its DTN-X XTC series to 12 terabits per second (Tb/s) of non-blocking optical transport network (OTN) switching with a new 1.2 Tb/s subsea line card.
Prominent players identified in the coherent optical equipment market and profiled in the study include Ciena Corporation, Huawei Technologies Co., Ltd., Cisco Systems, Inc., Nokia Corporation, Infinera Corporation, Fujitsu Limited, ECI Telecom Ltd. and ZTE Corporation.
Coherent Optical Equipment Market: Overview
This comprehensive report titled Coherent Optical Equipment Market-Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018 – 2026, by Transparency Market Research analyzes and provides growth forecast for the coherent optical equipment market at the global and regional level. In terms of region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America. The report provides analysis for the period 2016–2026, wherein 2018 to 2026 is the forecast period and the base year is 2017. An in-depth and unbiased market assessment has been made to offer readers insightful and accurate analysis. The report emphasizes on all the major trends and services that play a key role in the expansion of the coherent optical equipment market between 2018 and 2026. It also focuses on market drivers, restraining factors, and opportunities of the coherent optical equipment market during the forecast period.
The report includes a detailed key trends analysis, PESTEL analysis, and opportunity analysis, which is focused on providing an extensive view of the global coherent optical equipment market. Porter’s Five Forces analysis is also provided to understand the competitive scenario in the market. The study incorporates a market attractiveness analysis, in which market segments based on technology such as 100G, 200G, 400G+, and 400G ZR are benchmarked based on their market size, growth rate, and attractiveness in terms of opportunity. In order to provide a complete analysis of the overall competitive scenario in the coherent optical equipment market, attractiveness analysis of every geographic region mentioned in the report has been provided.
An overview of the coherent optical equipment market detailing key trends and dynamics has been included to provide a clear understanding of market driving forces. The dynamics include impact analysis of market drivers, restraining factors, and opportunities of the coherent optical equipment market. Additionally, the report provides analysis of business strategies adopted by market leaders in the coherent optical equipment market. Trends and services related to coherent optical equipment along with their applications have also been explained in the report.
Global Coherent Optical Equipment Market: Scope of the Report
The study provides a decisive view of the global coherent optical equipment market, broadly segmented based on technology into 100G, 200G, 400G+, and 400G ZR; based on equipment into WDM (Wavelength-Division Multiplexer), modules/chips, test & measurement equipment, optical amplifiers, optical switches, and others, based on application into networking, data center, and OEMs; and in terms of end-user into service provider, public sector, and industries. Further, the report provides a detailed breakdown of the coherent optical equipment market across geographic regions, which include North America, Europe, Asia Pacific, Middle East & Africa, and South America, thus providing valuable insights at the micro and macro levels.
The report highlights the competitive scenario within the coherent optical equipment market, ranking all the major players according to key recent developments and their geographic presence. The insights into the coherent optical equipment market are a result of our extensive primary interviews, secondary research, and in-house expert panel reviews. These market estimates have been analyzed by considering the impact of different economic, political, social, legal, and technological factors.
The market in North America has been segmented into the U.S., Canada, and Rest of North America. Furthermore, the market in Europe has been analyzed across France, Germany, the U.K., and Rest of Europe. The coherent optical equipment market in Asia Pacific has been segmented at country level into China, Japan, India, and Rest of Asia Pacific. The Middle East & Africa region covers GCC countries, South Africa, and Rest of Middle East & Africa. Similarly, South America includes Brazil and Rest of South America. This report provides all the strategic information required to understand the coherent optical equipment market along with technology, equipment,application, and end-user.
Global Coherent Optical Equipment Market: Research Methodology
The research methodology is a perfect combination of primary research, secondary research, and expert panel reviews. Secondary sources such as annual reports, company websites, SEC filings and investor presentations, internal and external proprietary databases, statistical databases, relevant patent and regulatory databases, market reports, government publications, World Bank database, and industry white papers are usually referred to for developing a preliminary understanding of the market.
Primary research involves telephonic interviews, e-mail interactions, and face-to-face interviews for detailed and unbiased reviews of the coherent optical equipment market across geographies. Primary interviews are usually conducted on an ongoing basis with industry experts and participants in order to obtain the latest market insights and validate existing data and analysis. Primary interviews offer new and fresh information on important factors such as market trends, market size, competitive landscape, growth trends, etc. These factors help validate and strengthen secondary research findings. Moreover, the data collected and analyzed from secondary and primary research is again discussed and examined by our expert panel.
Global Coherent Optical Equipment Market: Competitive Dynamics
The research study includes profiles of major companies operating in the global coherent optical equipment market. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments. Parameters such as investment and spending and developments by major players of the market are tracked. Some of the key players in the coherent optical equipment market are Ciena Corporation, Huawei Technologies Co., Ltd., Cisco Systems, Inc., Nokia Corporation, Infinera Corporation, Fujitsu Limited, ECI Telecom Ltd. and ZTE Corporation among others.
The coherent optical equipment market has been segmented as follows:
Global Coherent Optical Equipment Market
- 400G ZR
- WDM (Wavelength-Division Multiplexer)
- Test & Measurement Equipment
- Optical Amplifiers
- Optical Switches
- Others (optical fiber, optical splitters, fiber optic circulators, optical transceivers)
- Fiber-to-the-Building/Premises (FTTB/P) Optical Network
- Fiber-to-the-Home (FTTH) Optical Network
- Data Center
- Service provider
- Internet service provider
- Telecom Service provider
- Public Sector
- North America
- The U.S.
- Rest of North America
- The U.K.
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East & Africa
- GCC Countries
- South Africa
- Rest of Middle East & Africa
- South America
- Rest of South America