Market Size of Optical Encryption Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 8.10 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Optical Encryption Market Analysis
The optical encryption market is expected to register a CAGR of 8.1%, during the forecast period (2021-2026).
- Owing to the growth of internet devices and the volume of data generated over the course of years, data security has become not just a single feature but rather an increasingly important set of technologies to safeguard the data that is sent across both private and public networks.
- The effective security of the network relies on multiple layers of defense and not just at the core and edge of the network, but also along the network path, while most the organizations focus much of their security at user and application end, which is essential to protect the in-flight data as it travels across the network.
- Although traditional in-flight data encryption solutions have been around for a while, they suffered a number of challenges to cope with current network infrastructures, such as increased latency, delay in management, and hardware compatibility, thereby, adding up to the complexity in maintaining the network.
- Also, the increase of in-flight data to be carried at longer distances across waves, including 10 G, 40 G, and 100 G, among others, has initiated the adoption of optical encryption to protect high-capacity that is be traveled across countries. For instance, in January 2020, BGN Technology, a transfer company of the Ben-Gurion University of Negev, introduced all-optical stealth encryption technology that claimed to be significantly more secure and private for the network transmission of the data center and cloud computing. The solution is said to employ the phase mask that enables it to change the phase of each wavelength.
- Furthermore, the industry-wide adoption of cloud computing application for hosting, processing, and data storage led to an increase in the frequency of sensitive data transferred across the network, which added costs associated with data loss. Increase of data breaches fosters the growth of the market. For instance, 2019 accounted for some of the breaches from major players in various industries, including Zynga, Facebook, Adobe Creative Cloud, and Capital One Financial Corporation, and it reported as much as a leak of 218 million data records.
- Additionally, Industry 4.0 initiatives, such as smart city intiatioas and IoT adoption, and the increasing dependency of organizations, including data center and miltary on the internet network, and the frequency and sophistication of cyberattacks are on the rise, which further elevates the growth the market.
