Optical Communication And Networking Market – Global Industry Trends and Technological Advancements 2017 to 2025


Optical Communication and Networking: Market Outline

Telecommunications plays a significant role in the development of Information technology sectors primarily owing to the adoption of optical communication. There has been an exponential growth in the adoption of optical communication owing to high bandwidth leading to low loss of data and no electromagnetic interference. Optical communication primarily makes use of light for transmission of data from one point to another. The efficiency in the operation is achieved mainly due to 3 basic elements which include: compact light source, low loss optical fiber and photo detector. Based on the applications, it can be classified into: light emitting diodes (LED’s) and laser diodes. LED’s are used for low data rate and short distance applications, while laser diode is preferred for long distance and high data rate applications. Optical fiber cable plays the role of mediator for carrying the data from one point to another. There are two types of fiber optical cable listed as: single-mode optical fibers and multi-mode optical fibers.  Single mode fibers transmit one signal at a time owing to the small cores. Telephones and television sets are the example of single mode fibers, while multi-mode fibers are used in computer and local area networks (LAN) and it transmit multiple signals per fiber. The final component is photo detectors which perform the operation of converting the light signal back to electrical form.


Market Growth Factors:

Increased demand for the communication bandwidth specifically for fast data transfer with minimum loss in data has led to the development of cloud computing architectures. Cloud computing services provide more flexible ways of transferring the data with the backbone support of optical communications. Hence rapid adoption of cloud based services forms the major factor in propelling the market growth.  There has been an increase in the network traffic over the few decades, delivering this substantial amount of data for business specific applications is a challenging task. Adoption of optical communication enables the delivery of data efficiently with minimum loss and thereby achieving good quality of services. For instance:  Reliance Jio which has about 120 million 4G subscribers .This amount is achieved due to the use of optical fibre laid over about 300,00 kilometres in the country.

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Market Segmentation:

The technological segmentation of the optical communication and networking market includes: On the basis of components used the market is bifurcated into:  optical fibers, optical transceivers, and optical circulators. The optical fiber is further segmented as: single mode fiber and multi-mode fiber, while optical transceivers are further classified as: SFF and SFP, XFP, CFP and CFP, CFP2, and CFP4. The optical switches are segmented as: all-optical switch and electro-optical switch. Based on the technology used the market is bifurcated as: Sonet, WDM and Fiber channel. By applications the market is divided into telecom, data center and enterprise.


Regional Analysis:

North and Europe are hold the major market shares in the optical communication market owing to the heavy investment in the security infrastructure. Emergence of cloud and data center hubs across the region is the significant factor in the market growth. Asia-Pacific is the fastest growing region due the expansion in IT and telecommunication sectors. Increased adoption of fiber optic in India, China and Japan is the key factor in boosting the market.

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Competitive Analysis:

The major players operating in the optical communication market are:

  • Huawei
  • Cisco
  • Ciena
  • Nokia
  • Finisar
  • ZTE
  • Adtran
  • Infinera
  • Adva
  • Fujitsu Optical Components

On January, 2018 Google announced its expansion of cloud based services by making undersea fiber optic cables.


Latest News:

Researchers from Institute of Electronic Structure and Laser (IESL) have created fiber optic sensors that dissolve in the body. The technology could be used in monitoring of bone fracture healing.


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