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- ZTE CORPORATION
- INFINERA CORPORATION
- CISCO SYSTEMS, INC.
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Coherent Optical Equipment Market Size And Forecast
Coherent Optical Equipment Market size was valued at USD 28.79 Billion in 2024 and is projected to reach USD 47.74 Billion by 2032, growing at a CAGR of 7.20% during the forecasted period 2026 to 2032.
The development in the network infrastructure such as improvement in the digital coherent receiver in response to the advancement in the technologies is propelling the growth of the market. The Global Coherent Optical Equipment Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.
Global Coherent Optical Equipment Market Definition
The Coherent Optical Equipment is the set of equipment that is capable of providing a high speed of data transmission. It is basically an optical fiber cable that provides a speed of 100G+ with an improved volume of information and transferable capacity. The methods such as amplitude and phase modulation of light with transmission across two polarizations are introduced to enhance the coherent optical transmission. It extensively finds its application in the data center, networking, and various industries such as aviation, energy, and others. The growing need to embrace new IT arrangements with present-day customer slants over the world is driving the interest in Coherent Optical Equipment.
Coherent optical equipment serves to coherent optical transmission by modulating the amplitude and phase of the light through the optical carrier. The technology used allows the transport the more information through a fibre optic cable. The technology incorporated in coherent optical equipment drives to attain a transport speed of 100G and beyond that means it is capable of delivering the terabits of information across a single fibre pair. The growing need for faster transfer of data in order to reduce the issues concerning inactivity contributes to the rising demand of the market.
Global Coherent Optical Equipment Market Overview
The need for connectivity and bandwidth has been growing owing to innovations in technology. The coherent optical equipment market is experiencing significant growth owing to the increasing demand for the new capacity network. With rapid pace of innovations in both wireless and wired networking space, internet service providers, cable and wireless providers contribute to the growing need for high speed and bandwidth. The increasing need for the high speed and bandwidth owing to the emergence of the data centre, which is consider as the massive infrastructure that is required to serve the data needs of the people and various IT organizations. The data centres comprise of expandable volume of data and thereby leads to increasing requirement and in turns drives the growth of the market.
The coherent optical equipment market is experiencing a potential growth owing to the surge in the adoption of the new IT solutions across the globe. The technological advancements lead to introduce the trends that contribute in the market growth with a faster pace and greater degree of effectivity. The business has been transforming with the emergence of innovative IT solutions.
Deployment of the coherent optical technology requires high initial investments and thereby acts as a restricting factor for the growth of the Coherent Optical Equipment market. The cost to the fibre increases with the deployment of the longer fibre routes. The increased fibre capacity directly depends on the cost price of lightning fibre.
Global Coherent Optical Equipment Market: Segmentation Analysis
The Global Coherent Optical Equipment Market is segmented based on Equipment, Application, End-User, And Geography.
Coherent Optical Equipment Market, By Equipment
- Modules/Chips
- Optical Amplifiers
- Optical Switches
- Wavelength-division Multiplexer (WDM)
- Others
Based on Equipment, the market is segmented into Modules/Chips, Optical Amplifiers, Optical Switches, Wavelength-division Multiplexer (WDM), and Others. The WDM accounted for the largest market share of 27.53% in 2020, with a market value of USD 5,813.32 Million, and is projected to grow at the highest CAGR of 9.82% during the forecast period. Optical Switches was the second-largest market in 2020, valued at USD 4,865.64 Million in 2020. The WDM segment is perhaps going to be driven by the interest for 100G+ coherent wavelengths. It's exceptionally well-known equipment that supports in multiplexing of many optical fiber bearer signals into a solitary fiber optic link by utilizing diverse wavelengths of light. the best-preferred standpoint of WDM is that it can convey different wavelengths in a solitary fiber link.
Coherent Optical Equipment Market, By Application
- Original Equipment Manufacturers (OEMs)
- Networking
- Data Center
- Others
Based on Application, the market is segmented into Original Equipment Manufacturers (OEMs), Networking, Data Center, and Others. Out of these, networking applications in Coherent Optical Equipment accounted for leading the market share.
- Networking accounted for the largest market share of 49.33% in 2020, with a market value of USD 10,415.08 Million, and is projected to grow at the highest CAGR of 10.59% during the forecast period.
- Networking is a type of optical communication that depends on optical amplifiers, LEDs, lasers, and WDM to transmit data through a channel (usually by optical fiber). It's capable of transmitting data with maximum possible bandwidth and minimum possible losses.
Coherent Optical Equipment Market, By End-User
- Industries
- Public Sector
- Service Provider
- Others
Based on End-User, the market is segmented into Industries, Public Sector, Service Provider, and Others. The service provider sector is the leading user of Coherent Optical Equipment in this segment, due to the expanding interest for fast transfer speed from network access suppliers and telecom service providers.
- Service Provider accounted for the largest market share of 51.88% in 2020, with a market value of USD 10,954.28 Million, and is projected to grow at a CAGR of 9.63% during the forecast period. Industries were the second-largest market in 2020, valued at USD 5,370.64 Million in 2020
- Coherent Optical Equipment Market by Component
- Laser
- DSP
- Transmitter
- Receiver
- Modulator
Based on the Component, the market is bifurcated into Laser, DSP, Transmitter, Receiver, and Modulator. DSP accounted for the largest market share of 66.74% in 2020, with a market value of USD 14,091.14 Million and is projected to grow at a CAGR of 8.82% during the forecast period. Laser was the second-largest market in 2020, valued at USD 3,588.48 Million in 2020.
- In an optical coherent mixer, coherent detection employs a laser set to a certain frequency as a local oscillator (LO) that "intradynes" with the received signal. Because of the speed and intricacy of these computations, customized Digital Signal Processors (DSP) with specific chips have been developed. They make use of the most up-to-date 7nm chip technology.
Coherent Optical Equipment Market, By Geography
- North America
- Europe
- Asia Pacific
- Rest of the world
- On the basis of Geography, the Global Coherent Optical Equipment Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. North America accounted for the largest market share of 37.69% in 2020, with a market value of USD 7,957.86 Million, and is projected to grow at the highest CAGR of 9.71% during the forecast period. Asia Pacific was the second-largest market in 2020, valued at USD 6,833.86 Million in 2020.
Key Players
The "Global Coherent Optical Equipment Market" study report will provide valuable insight with an emphasis on the global market. The major players in the market are Huawei Technologies Co., Ltd., Fujitsu Limited, Ciena Corporation, Nokia Corporation, NEC Corporation, Ribbon, Cisco Systems, Inc., Infinera Corporation, ZTE Corporation, Marvell Technology, Inc. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.
Key Developments
- Partnerships, Collaborations, and Agreements
- On August 10, 2020, Windstream and Ciena have announced that Windstream, a flexible provider of advanced network communications, will use Ciena's photonic, coherent optical, and intelligent software platforms to develop its National Converged Optical Network. Windstream will be able to fulfill customers' increasing bandwidth demands, which are being driven by remote work and learning apps, cloud computing, and video streaming, due to the new network.
- Mergers and Acquisitions
- On March 1, 2021, Cisco announced the completion of its acquisition of Acacia Communications, Inc., a Massachusetts-based firm and current Cisco supplier. Acacia designs manufacture and distribute a comprehensive portfolio of high-speed optical interconnect technologies for data center, metro, regional, long-haul, and submarine networks.
- Product Launches and Product Expansions
- In May 2020, Nokia introduced WaveFabric Elements optical range for the 400G environment to suit the increasing demands of 5G and cloud. Its WaveFabric Elements portfolio includes photonic chips, devices, and subsystems, including the Photonic Service Engine V, a fifth-generation coherent digital signal processor family (PSE-V).
TABLE OF CONTENTS
1 INTRODUCTION
- 1.1 MARKET DEFINITION
- 1.2 MARKET SEGMENTATION
- 1.3 RESEARCH TIMELINES
- 1.4 ASSUMPTIONS
- 1.5 LIMITATIONS
2 RESEARCH METHODOLOGY
- 2.1 DATA MINING
- 2.2 SECONDARY RESEARCH
- 2.3 PRIMARY RESEARCH
- 2.4 SUBJECT MATTER EXPERT ADVICE
- 2.5 QUALITY CHECK
- 2.6 FINAL REVIEW
- 2.7 DATA TRIANGULATION
- 2.8 BOTTOM-UP APPROACH
- 2.9 TOP-DOWN APPROACH
- 2.10 RESEARCH FLOW
3 EXECUTIVE SUMMARY
- 3.1 MARKET OVERVIEW
- 3.2 GLOBAL COHERENT OPTICAL EQUIPMENT MARKET GEOGRAPHICAL ANALYSIS (CAGR %)
- 3.3 GLOBAL COHERENT OPTICAL EQUIPMENT MARKET, BY APPLICATION (USD MILLION)
- 3.4 GLOBAL COHERENT OPTICAL EQUIPMENT MARKET, BY END-USER (USD MILLION)
- 3.5 GLOBAL COHERENT OPTICAL EQUIPMENT MARKET, BY EQUIPMENT (USD MILLION)
- 3.6 GLOBAL COHERENT OPTICAL EQUIPMENT MARKET, BY COMPONENT (USD MILLION)
- 3.7 FUTURE MARKET OPPORTUNITIES
- 3.8 GLOBAL MARKET SPLIT
4 MARKET OUTLOOK
- 4.1 GLOBAL COHERENT OPTICAL EQUIPMENT MARKET OUTLOOK
- 4.2 MARKET DRIVERS
- 4.2.1 INCREASING NEED FOR HIGH-SPEED BANDWIDTH & RISING INTERNET ADOPTION
- 4.2.2 GROWING NEED TO ADOPT NEW IT SOLUTIONS
- 4.3 MARKET RESTRAINTS
- 4.3.1 HIGH INVESTMENT IN THE DEPLOYMENT OF COHERENT OPTICAL FIBER SYSTEM
- 4.4 MARKET OPPORTUNITIES
- 4.4.1 TECHNOLOGICAL ADVANCEMENT IN NETWORKING INFRASTRUCTURE
- 4.5 IMPACT OF COVID -19 ON GLOBAL COHERENT OPTICAL EQUIPMENT MARKET
- 4.6 PORTER'S FIVE FORCES ANALYSIS
- 4.7 PRODUCT LIFELINE
5 MARKET, BY APPLICATION
- 5.1 OVERVIEW
- 5.1 NETWORKING
- 5.2 ORIGINAL EQUIPMENT MANUFACTURING (OEM)
- 5.3 DATA CENTRE
6 MARKET, BY END-USER
- 6.1 OVERVIEW
- 6.2 SERVICE PROVIDER
- 6.3 INDUSTRIES
- 6.4 PUBLIC SECTOR
- 6.5 OTHERS
7 MARKET, BY EQUIPMENT
- 7.1 OVERVIEW
- 7.2 WDM
- 7.3 OPTICAL SWITCHES
- 7.4 OPTICAL AMPLIFIERS
- 7.5 MODULE/CHIPS
- 7.6 OTHERS
8 MARKET, BY COMPONENT
- 8.1 OVERVIEW
- 8.2 LASER
- 8.3 DSP
- 8.4 TRANSMITTER
- 8.5 RECEIVER
- 8.6 MODULATOR
9 MARKET, BY GEOGRAPHY
- 9.1 OVERVIEW
- 9.2 NORTH AMERICA
- 9.2.1 THE U.S.
- 9.2.2 CANADA
- 9.2.3 MEXICO
- 9.3 EUROPE
- 9.3.1 GERMANY
- 9.3.2 U.K.
- 9.3.3 FRANCE
- 9.3.4 REST OF EUROPE
- 9.4 ASIA PACIFIC
- 9.4.1 CHINA
- 9.4.2 INDIA
- 9.4.3 JAPAN
- 9.4.4 REST OF ASIA PACIFIC
- 9.5 REST OF WORLD
- 9.5.1 MIDDLE EAST AND AFRICA
- 9.5.2 LATIN AMERICA
10 COMPETITIVE LANDSCAPE
- 10.1 OVERVIEW
- 10.2 COMPETITIVE SCENARIO
- 10.3 COMPANY MARKET RANKING ANALYSIS
11 COMPANY PROFILES
- 11.1 HUAWEI TECHNOLOGIES CO., LTD.
- 11.1.1 COMPANY OVERVIEW
- 11.1.2 COMPANY INSIGHTS
- 11.1.3 PRODUCT BENCHMARKING
- 11.1.4 SWOT ANALYSIS
- 11.1.5 KEY DEVELOPMENT
- 11.2 FUJITSU LIMITED
- 11.2.1 COMPANY OVERVIEW
- 11.2.2 COMPANY INSIGHTS
- 11.2.1 SEGMENT BREAKDOWN
- 11.2.2 PRODUCT BENCHMARKING
- 11.2.3 KEY DEVELOPMENT
- 11.2.4 SWOT ANALYSIS
- 11.3 CIENA CORPORATION
- 11.3.1 COMPANY OVERVIEW
- 11.3.2 COMPANY INSIGHTS
- 11.3.3 SEGMENT BREAKDOWN
- 11.3.4 PRODUCT BENCHMARKING
- 11.3.5 KEY DEVELOPMENT
- 11.3.6 SWOT ANALYSIS
- 11.4 RIBBON COMMUNICATIONS
- 11.4.1 COMPANY OVERVIEW
- 11.4.2 COMPANY INSIGHTS
- 11.4.3 SEGMENT BREAKDOWN
- 11.4.4 PRODUCT BENCHMARKING
- 11.4.5 KEY DEVELOPMENT
- 11.5 MARVELL TECHNOLOGY, INC.
- 11.5.1 COMPANY OVERVIEW
- 11.5.2 COMPANY INSIGHTS
- 11.5.3 SEGMENT BREAKDOWN
- 11.5.4 PRODUCT BENCHMARKING
- 11.5.5 KEY DEVELOPMENT
- 11.6 ZTE CORPORATION
- 11.6.1 COMPANY OVERVIEW
- 11.6.2 COMPANY INSIGHTS
- 11.6.3 SEGMENT BREAKDOWN
- 11.6.4 PRODUCT BENCHMARKING
- 11.6.5 KEY DEVELOPMENT
- 11.7 INFINERA CORPORATION
- 11.7.1 COMPANY OVERVIEW
- 11.7.2 COMPANY INSIGHTS
- 11.7.3 SEGMENT BREAKDOWN
- 11.7.4 PRODUCT BENCHMARKING
- 11.8 CISCO SYSTEMS, INC.
- 11.8.1 COMPANY OVERVIEW
- 11.8.2 COMPANY INSIGHTS
- 11.8.3 SEGMENT BREAKDOWN
- 11.8.4 PRODUCT BENCHMARKING
- 11.9 NEC CORPORATION
- 11.9.1 COMPANY OVERVIEW
- 11.9.2 COMPANY INSIGHTS
- 11.9.3 SEGMENT BREAKDOWN
- 11.9.4 PRODUCT BENCHMARKING
- 11.9.5 KEY DEVELOPMENT
- 11.10 NOKIA CORPORATION
- 11.10.1 COMPANY OVERVIEW
- 11.10.2 COMPANY INSIGHTS
- 11.10.3 SEGMENT BREAKDOWN
- 11.10.4 PRODUCT BENCHMARKING