Optical network hardware market size to grow by USD 6,074.53 million; North America to account for 36% of the growth of the global market - Technavio

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Feb 15, 2023, 21:15 ET

NEW YORK, Feb. 15, 2023 /PRNewswire/ -- According to Technavio, the global optical network hardware market size is estimated to grow by USD 6,074.53 million from 2022 to 2027. The market is estimated to grow at a CAGR of 7.43% during the forecast period. Moreover, the growth momentum will accelerate. North America will account for 36% of the growth of the global market during the forecast period. The report includes historic market data from 2017 to 2021. In 2017, the optical network hardware market was valued at USD 11,361.03 million. The report also provides a comprehensive analysis of growth opportunities at regional levels, new product launches, the latest trends, and the post-pandemic recovery of the global market. For more insights on the market, request a sample report.

Technavio has announced its latest market research report titled Global Optical Network Hardware Market 2023-2027

Optical network hardware market - Five forces
The global optical network hardware market is fragmented, and the five forces analysis covers–

Bargaining power of buyers
The threat of new entrants
Threat of rivalry
Bargaining power of suppliers
Threat of substitutes
For an interpretation of Porter's five forces model – Buy the report!

Optical network hardware market – Customer landscape

The report includes the market's adoption lifecycle, from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Optical network hardware market - Segmentation assessment

Segment overview
Technavio has segmented the market based on type (broadband infrastructure, fiber optic network, data center, and smart cities) and application (WDM and SONET/SDH).

The broadband infrastructure segment will account for a significant share of the market's growth during the forecast period. This growth will be accelerated by the increasing penetration rate of the internet and smartphones. In addition, the use of bandwidth in finance, media, and automation has increased significantly. The advent of IoT will fuel the demand for seamless data transmission, which requires high bandwidth. These factors are expected to increase the use of optical transport networks, which will drive the demand for broadband infrastructure during the forecast period.

Geography overview
Based on geography, the global optical network hardware market is segmented into North America, APAC, Europe, Middle East and Africa, and South America. The report provides actionable insights and estimates the contribution of all regions to the growth of the global optical network hardware market.

North America is estimated to account for 36% of the growth of the global market during the forecast period. The demand for fiber-optic connections from residential and business customers is increasing. The growth of the communications industry is driven by the increasing use of the internet for purposes such as online gaming, social media, video chatting, and online shopping. As a result, there is a high need for bandwidth from metros and urban areas. In addition, the advent of IoT will fuel the demand for seamless data transmission. All these factors are expected to increase the use of optical transport networks, which will drive the regional market's growth during the forecast period

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Optical network hardware market – Market dynamics
Key factor driving market growth

The high demand for data centers is driving market growth.
A rise in investments in data centers is fueling the demand for new optical modules to meet the demand for high bandwidth, low power, and wider reach.
Hence, there is a demand for high duplex throughput to accommodate the growing requirement of data management.
Analytics applications and other complex cloud-based applications need high-speed internet connectivity.
Moreover, data centers owned by enterprises require energy-efficient and high-performance storage infrastructure. Fiber-optic network hardware is a key element of these data centers.
These factors will drive the global market during the forecast period.

Leading trends influencing the market

Emerging new-age technologies and their requirements for scaling business opportunities are key trends in the market.
The growing penetration of the IoT is expected to have a positive impact on the growth of the global market.
IoT needs high-speed connectivity to ensure the delivery of optimum service, which is achieved with the use of a fiber network.
Optical network hardware can also enable cost-effective scaling options for internet infrastructure to accommodate the growing network traffic.
Such factors are expected to support the growth of the global market during the forecast period.

Major challenges hindering the market growth

The lack of OTN standards is challenging market growth.
Growth, expansion, and interconnection across networks have led to issues related to standardization.
There is a lack of a common mapping structure, which has compelled carriers to de-multiplex client traffic into the lowest form at the carrier boundaries.
In addition, the non-availability of standard fault detection and alarm indication indicates that faults cannot be communicated to other portions of the network.
As a result, consumers complain about poor signals, and carriers have no knowledge about the fault.
Such concerns hinder the functioning of a network and the selling of mission-critical services, which will impede the market's growth during the forecast period.

Drivers, trends, and challenges have an impact on market dynamics, which can impact businesses. Find more insights in a sample report!

What are the key data covered in this optical network hardware market report?

CAGR of the market during the forecast period
Detailed information on factors that will drive the growth of the optical network hardware market between 2023 and 2027
Precise estimation of the size of the optical network hardware market and its contribution to the parent market
Accurate predictions about upcoming trends and changes in consumer behavior
Growth of the optical network hardware market across North America, APAC, Europe, Middle East and Africa, and South America
A thorough analysis of the market's competitive landscape and detailed information about vendors
Comprehensive analysis of factors that will challenge the growth of optical network hardware market vendors

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Optical Network Hardware Market Scope
Report Coverage	Details
Page number	168
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 7.43%
Market growth 2023-2027	USD 6,074.53 million
Market structure	Fragmented
YoY growth 2022-2023 (%)	6.73
Regional analysis	North America, APAC, Europe, Middle East and Africa, and South America
Performing market contribution	North America at 36%
Key countries	US, China, India, Germany, and UK
Competitive landscape	Leading vendors, market positioning of vendors, competitive strategies, and industry risks
Key companies profiled	Adtran Inc., ADVA Optical Networking SE, ALE International, Ciena Corp., Cisco Systems Inc., E.C.I. NETWORKS INC., Ekinops SA, FiberHome Telecommunication Technologies Co. Ltd., Fujitsu Ltd., Huawei Technologies Co. Ltd., II-VI Inc., Infinera Corp., Juniper Networks Inc., NEC Corp., Nokia Corp., Padtec Holding S.A., TE Connectivity Ltd., Tejas Network Ltd., Telefonaktiebolaget LM Ericsson, and ZTE Corp.
Market dynamics	Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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Table of contents

1 Executive Summary

1.1 Market overview

Exhibit 01: Executive Summary – Chart on Market Overview
Exhibit 02: Executive Summary – Data Table on Market Overview
Exhibit 03: Executive Summary – Chart on Global Market Characteristics
Exhibit 04: Executive Summary – Chart on Market by Geography
Exhibit 05: Executive Summary – Chart on Market Segmentation by Type
Exhibit 06: Executive Summary – Chart on Market Segmentation by Application
Exhibit 07: Executive Summary – Chart on Incremental Growth
Exhibit 08: Executive Summary – Data Table on Incremental Growth
Exhibit 09: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

2.1 Market ecosystem

Exhibit 10: Parent market
Exhibit 11: Market Characteristics

3 Market Sizing

3.1 Market definition

Exhibit 12: Offerings of vendors included in the market definition

3.2 Market segment analysis

Exhibit 13: Market segments

3.3 Market size 2022

3.4 Market outlook: Forecast for 2022-2027

Exhibit 14: Chart on Global - Market size and forecast 2022-2027 ($ million)
Exhibit 15: Data Table on Global - Market size and forecast 2022-2027 ($ million)
Exhibit 16: Chart on Global Market: Year-over-year growth 2022-2027 (%)
Exhibit 17: Data Table on Global Market: Year-over-year growth 2022-2027 (%)

4 Historic Market Size

4.1 Global optical network hardware market 2017 - 22021

Exhibit 18: Historic Market Size – Data Table on Global optical network hardware market 2017 - 22021 ($ million)

4.2 Type Segment Analysis 2017 - 22021

Exhibit 19: Historic Market Size – Type Segment 2017 - 22021 ($ million)

4.3 Application Segment Analysis 2017 - 22021

Exhibit 20: Historic Market Size – Application Segment 2017 - 22021 ($ million)

4.4 Geography Segment Analysis 2017 - 22021

Exhibit 21: Historic Market Size – Geography Segment 2017 - 22021 ($ million)

4.5 Country Segment Analysis 2017 - 22021

Exhibit 22: Historic Market Size – Country Segment 2017 - 22021 ($ million)

5 Five Forces Analysis

5.1 Five forces summary

Exhibit 23: Five forces analysis - Comparison between 2022 and 2027

5.2 Bargaining power of buyers

Exhibit 24: Chart on Bargaining power of buyers – Impact of key factors 2022 and 2027

5.3 Bargaining power of suppliers

Exhibit 25: Bargaining power of suppliers – Impact of key factors in 2022 and 2027

5.4 Threat of new entrants

Exhibit 26: Threat of new entrants – Impact of key factors in 2022 and 2027

5.5 Threat of substitutes

Exhibit 27: Threat of substitutes – Impact of key factors in 2022 and 2027

5.6 Threat of rivalry

Exhibit 28: Threat of rivalry – Impact of key factors in 2022 and 2027

5.7 Market condition

Exhibit 29: Chart on Market condition - Five forces 2022 and 2027

6 Market Segmentation by Type

6.1 Market segments

Exhibit 30: Chart on Type - Market share 2022-2027 (%)
Exhibit 31: Data Table on Type - Market share 2022-2027 (%)

6.2 Comparison by Type

Exhibit 32: Chart on Comparison by Type
Exhibit 33: Data Table on Comparison by Type

6.3 Broadband infrastructure - Market size and forecast 2022-2027

Exhibit 34: Chart on Broadband infrastructure - Market size and forecast 2022-2027 ($ million)
Exhibit 35: Data Table on Broadband infrastructure - Market size and forecast 2022-2027 ($ million)
Exhibit 36: Chart on Broadband infrastructure - Year-over-year growth 2022-2027 (%)
Exhibit 37: Data Table on Broadband infrastructure - Year-over-year growth 2022-2027 (%)

6.4 Fiber optic network - Market size and forecast 2022-2027

Exhibit 38: Chart on Fiber optic network - Market size and forecast 2022-2027 ($ million)
Exhibit 39: Data Table on Fiber optic network - Market size and forecast 2022-2027 ($ million)
Exhibit 40: Chart on Fiber optic network - Year-over-year growth 2022-2027 (%)
Exhibit 41: Data Table on Fiber optic network - Year-over-year growth 2022-2027 (%)

6.5 Datacenter - Market size and forecast 2022-2027

Exhibit 42: Chart on Datacenter - Market size and forecast 2022-2027 ($ million)
Exhibit 43: Data Table on Datacenter - Market size and forecast 2022-2027 ($ million)
Exhibit 44: Chart on Datacenter - Year-over-year growth 2022-2027 (%)
Exhibit 45: Data Table on Datacenter - Year-over-year growth 2022-2027 (%)

6.6 Smart cities - Market size and forecast 2022-2027

Exhibit 46: Chart on Smart cities - Market size and forecast 2022-2027 ($ million)
Exhibit 47: Data Table on Smart cities - Market size and forecast 2022-2027 ($ million)
Exhibit 48: Chart on Smart cities - Year-over-year growth 2022-2027 (%)
Exhibit 49: Data Table on Smart cities - Year-over-year growth 2022-2027 (%)

6.7 Market opportunity by Type

Exhibit 50: Market opportunity by Type ($ million)

7 Market Segmentation by Application

7.1 Market segments

Exhibit 51: Chart on Application - Market share 2022-2027 (%)
Exhibit 52: Data Table on Application - Market share 2022-2027 (%)

7.2 Comparison by Application

Exhibit 53: Chart on Comparison by Application
Exhibit 54: Data Table on Comparison by Application

7.3 WDM - Market size and forecast 2022-2027

Exhibit 55: Chart on WDM - Market size and forecast 2022-2027 ($ million)
Exhibit 56: Data Table on WDM - Market size and forecast 2022-2027 ($ million)
Exhibit 57: Chart on WDM - Year-over-year growth 2022-2027 (%)
Exhibit 58: Data Table on WDM - Year-over-year growth 2022-2027 (%)

7.4 SONET/SDH - Market size and forecast 2022-2027

Exhibit 59: Chart on SONET/SDH - Market size and forecast 2022-2027 ($ million)
Exhibit 60: Data Table on SONET/SDH - Market size and forecast 2022-2027 ($ million)
Exhibit 61: Chart on SONET/SDH - Year-over-year growth 2022-2027 (%)
Exhibit 62: Data Table on SONET/SDH - Year-over-year growth 2022-2027 (%)

7.5 Market opportunity by Application

Exhibit 63: Market opportunity by Application ($ million)

8 Customer Landscape

8.1 Customer landscape overview

Exhibit 64: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

9 Geographic Landscape

9.1 Geographic segmentation

Exhibit 65: Chart on Market share by geography 2022-2027 (%)
Exhibit 66: Data Table on Market share by geography 2022-2027 (%)

9.2 Geographic comparison

Exhibit 67: Chart on Geographic comparison
Exhibit 68: Data Table on Geographic comparison

9.3 North America - Market size and forecast 2022-2027

Exhibit 69: Chart on North America - Market size and forecast 2022-2027 ($ million)
Exhibit 70: Data Table on North America - Market size and forecast 2022-2027 ($ million)
Exhibit 71: Chart on North America - Year-over-year growth 2022-2027 (%)
Exhibit 72: Data Table on North America - Year-over-year growth 2022-2027 (%)

9.4 APAC - Market size and forecast 2022-2027

Exhibit 73: Chart on APAC - Market size and forecast 2022-2027 ($ million)
Exhibit 74: Data Table on APAC - Market size and forecast 2022-2027 ($ million)
Exhibit 75: Chart on APAC - Year-over-year growth 2022-2027 (%)
Exhibit 76: Data Table on APAC - Year-over-year growth 2022-2027 (%)

9.5 Europe - Market size and forecast 2022-2027

Exhibit 77: Chart on Europe - Market size and forecast 2022-2027 ($ million)
Exhibit 78: Data Table on Europe - Market size and forecast 2022-2027 ($ million)
Exhibit 79: Chart on Europe - Year-over-year growth 2022-2027 (%)
Exhibit 80: Data Table on Europe - Year-over-year growth 2022-2027 (%)

9.6 Middle East and Africa - Market size and forecast 2022-2027

Exhibit 81: Chart on Middle East and Africa - Market size and forecast 2022-2027 ($ million)
Exhibit 82: Data Table on Middle East and Africa - Market size and forecast 2022-2027 ($ million)
Exhibit 83: Chart on Middle East and Africa - Year-over-year growth 2022-2027 (%)
Exhibit 84: Data Table on Middle East and Africa - Year-over-year growth 2022-2027 (%)

9.7 South America - Market size and forecast 2022-2027

Exhibit 85: Chart on South America - Market size and forecast 2022-2027 ($ million)
Exhibit 86: Data Table on South America - Market size and forecast 2022-2027 ($ million)
Exhibit 87: Chart on South America - Year-over-year growth 2022-2027 (%)
Exhibit 88: Data Table on South America - Year-over-year growth 2022-2027 (%)

9.8 US - Market size and forecast 2022-2027

Exhibit 89: Chart on US - Market size and forecast 2022-2027 ($ million)
Exhibit 90: Data Table on US - Market size and forecast 2022-2027 ($ million)
Exhibit 91: Chart on US - Year-over-year growth 2022-2027 (%)
Exhibit 92: Data Table on US - Year-over-year growth 2022-2027 (%)

9.9 China - Market size and forecast 2022-2027

Exhibit 93: Chart on China - Market size and forecast 2022-2027 ($ million)
Exhibit 94: Data Table on China - Market size and forecast 2022-2027 ($ million)
Exhibit 95: Chart on China - Year-over-year growth 2022-2027 (%)
Exhibit 96: Data Table on China - Year-over-year growth 2022-2027 (%)

9.10 Germany - Market size and forecast 2022-2027

Exhibit 97: Chart on Germany - Market size and forecast 2022-2027 ($ million)
Exhibit 98: Data Table on Germany - Market size and forecast 2022-2027 ($ million)
Exhibit 99: Chart on Germany - Year-over-year growth 2022-2027 (%)
Exhibit 100: Data Table on Germany - Year-over-year growth 2022-2027 (%)

9.11 India - Market size and forecast 2022-2027

Exhibit 101: Chart on India - Market size and forecast 2022-2027 ($ million)
Exhibit 102: Data Table on India - Market size and forecast 2022-2027 ($ million)
Exhibit 103: Chart on India - Year-over-year growth 2022-2027 (%)
Exhibit 104: Data Table on India - Year-over-year growth 2022-2027 (%)

9.12 UK - Market size and forecast 2022-2027

Exhibit 105: Chart on UK - Market size and forecast 2022-2027 ($ million)
Exhibit 106: Data Table on UK - Market size and forecast 2022-2027 ($ million)
Exhibit 107: Chart on UK - Year-over-year growth 2022-2027 (%)
Exhibit 108: Data Table on UK - Year-over-year growth 2022-2027 (%)

9.13 Market opportunity by geography

Exhibit 109: Market opportunity by geography ($ million)

10 Drivers, Challenges, and Trends

10.1 Market drivers

10.2 Market challenges

10.3 Impact of drivers and challenges

Exhibit 110: Impact of drivers and challenges in 2022 and 2027

10.4 Market trends

11 Vendor Landscape

11.1 Overview

11.2 Vendor landscape

Exhibit 111: Overview on Criticality of inputs and Factors of differentiation

11.3 Landscape disruption

Exhibit 112: Overview on factors of disruption

11.4 Industry risks

Exhibit 113: Impact of key risks on business

12 Vendor Analysis

12.1 Vendors covered

Exhibit 114: Vendors covered

12.2 Market positioning of vendors

Exhibit 115: Matrix on vendor position and classification

12.3 Adtran Inc.

Exhibit 116: Adtran Inc. - Overview
Exhibit 117: Adtran Inc. - Business segments
Exhibit 118: Adtran Inc. - Key offerings
Exhibit 119: Adtran Inc. - Segment focus

12.4 ADVA Optical Networking SE

Exhibit 120: ADVA Optical Networking SE - Overview
Exhibit 121: ADVA Optical Networking SE - Product / Service
Exhibit 122: ADVA Optical Networking SE - Key offerings

12.5 ALE International

Exhibit 123: ALE International - Overview
Exhibit 124: ALE International - Product / Service
Exhibit 125: ALE International - Key offerings

12.6 Ciena Corp.

Exhibit 126: Ciena Corp. - Overview
Exhibit 127: Ciena Corp. - Business segments
Exhibit 128: Ciena Corp. - Key offerings
Exhibit 129: Ciena Corp. - Segment focus

12.7 Cisco Systems Inc.

Exhibit 130: Cisco Systems Inc. - Overview
Exhibit 131: Cisco Systems Inc. - Business segments
Exhibit 132: Cisco Systems Inc. - Key news
Exhibit 133: Cisco Systems Inc. - Key offerings
Exhibit 134: Cisco Systems Inc. - Segment focus

12.8 FiberHome Telecommunication Technologies Co. Ltd.

Exhibit 135: FiberHome Telecommunication Technologies Co. Ltd. - Overview
Exhibit 136: FiberHome Telecommunication Technologies Co. Ltd. - Product / Service
Exhibit 137: FiberHome Telecommunication Technologies Co. Ltd. - Key offerings

12.9 Fujitsu Ltd.

Exhibit 138: Fujitsu Ltd. - Overview
Exhibit 139: Fujitsu Ltd. - Business segments
Exhibit 140: Fujitsu Ltd. - Key news
Exhibit 141: Fujitsu Ltd. - Key offerings
Exhibit 142: Fujitsu Ltd. - Segment focus

12.10 Huawei Technologies Co. Ltd.

Exhibit 143: Huawei Technologies Co. Ltd. - Overview
Exhibit 144: Huawei Technologies Co. Ltd. - Business segments
Exhibit 145: Huawei Technologies Co. Ltd. - Key news
Exhibit 146: Huawei Technologies Co. Ltd. - Key offerings
Exhibit 147: Huawei Technologies Co. Ltd. - Segment focus

12.11 Infinera Corp.

Exhibit 148: Infinera Corp. - Overview
Exhibit 149: Infinera Corp. - Product / Service
Exhibit 150: Infinera Corp. - Key offerings

12.12 Juniper Networks Inc.

Exhibit 151: Juniper Networks Inc. - Overview
Exhibit 152: Juniper Networks Inc. - Product / Service
Exhibit 153: Juniper Networks Inc. - Key offerings

12.13 NEC Corp.

Exhibit 154: NEC Corp. - Overview
Exhibit 155: NEC Corp. - Business segments
Exhibit 156: NEC Corp. - Key news
Exhibit 157: NEC Corp. - Key offerings
Exhibit 158: NEC Corp. - Segment focus

12.14 Nokia Corp.

Exhibit 159: Nokia Corp. - Overview
Exhibit 160: Nokia Corp. - Business segments
Exhibit 161: Nokia Corp. - Key offerings
Exhibit 162: Nokia Corp. - Segment focus

12.15 TE Connectivity Ltd.

Exhibit 163: TE Connectivity Ltd. - Overview
Exhibit 164: TE Connectivity Ltd. - Business segments
Exhibit 165: TE Connectivity Ltd. - Key offerings
Exhibit 166: TE Connectivity Ltd. - Segment focus

12.16 Telefonaktiebolaget LM Ericsson

Exhibit 167: Telefonaktiebolaget LM Ericsson - Overview
Exhibit 168: Telefonaktiebolaget LM Ericsson - Business segments
Exhibit 169: Telefonaktiebolaget LM Ericsson - Key news
Exhibit 170: Telefonaktiebolaget LM Ericsson - Key offerings
Exhibit 171: Telefonaktiebolaget LM Ericsson - Segment focus

12.17 ZTE Corp.

Exhibit 172: ZTE Corp. - Overview
Exhibit 173: ZTE Corp. - Business segments
Exhibit 174: ZTE Corp. - Key news
Exhibit 175: ZTE Corp. - Key offerings
Exhibit 176: ZTE Corp. - Segment focus

13 Appendix

13.1 Scope of the report

13.2 Inclusions and exclusions checklist

Exhibit 177: Inclusions checklist
Exhibit 178: Exclusions checklist

13.3 Currency conversion rates for US$

Exhibit 179: Currency conversion rates for US$

13.4 Research methodology

Exhibit 180: Research methodology
Exhibit 181: Validation techniques employed for market sizing
Exhibit 182: Information sources

13.5 List of abbreviations

Exhibit 183: List of abbreviations

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Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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