Optical Communication and Networking Global Market Size Report 2024

Global optical communication and networking equipment market in terms of revenue was estimated to be worth USD 24.2 billion in 2022 and is poised to reach USD 36.6 billion by 2027, growing at a CAGR of 8.6% from 2022 to 2027. The new research study consists of an industry trend analysis of the market.

Key Players
Huawei Technologies Co., Ltd. (China), Cisco Systems, Inc. (US), Ciena Corporation (US), Nokia (Finland), II-VI Incorporated (US), ZTE Corporation (China), ADTRAN Inc. (US), Infinera Corporation (US), ADVA Optical Networking (Germany), and FUJITSU (Japan) are some of the optical communication and networking equipment companies in the market.

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By vertical, BFSI vertical held the largest share of optical communication and networking equipment market in 2021

The BFSI vertical accounted for the largest share of ~42% of the optical communication and networking equipment market in 2021. Optical communication and networking devices are being increasingly deployed in the BFSI sector to protect their customers’ confidential data, meet compliance standards to ensure data security, facilitate security auditing, and avoid reputation damage caused by data breaches. Owing to this, the BFSI vertical drives the growth of the market.

Optical transceiver segment of optical communication and networking equipment market is expected to grow with the highest CAGR during the forecast period

The optical transceiver segment accounted for the largest share of ~32% of the optical communication and networking equipment market, by component, in 2021. This growth is mainly attributed to the advent of technological advancements, such as AI, machine learning, and 5G communication, that lead to an increase in data traffic, which creates demand for high-scale data centers. The optical transceiver segment is projected to grow at the highest CAGR during the forecast period. The growing use of the internet by users of smartphones and other connected devices, as well as the adoption of cloud computing as a mainstream IT deployment option, leads to increasing demand for data centers. These factors are expected to accelerate the growth of the optical transceiver segment in the near future.

In 2027, Optical communication and networking equipment market in North America region is projected to hold the largest share of the overall market

The Americas accounted for the largest share of ~40% of the optical communication and networking equipment market in 2021. The Americas has emerged as a major data center and cloud computing hub. It is the largest consumer of market. Also, the optical communication and networking equipment industry growth in the region can be attributed to the enhanced application of advanced optical technologies such as quantum optics in aviation, industries, and the commercial sector in the region. Further, high defense spending and the presence of numerous important market players in the US are the key factors supporting the expansion of the market in the region.