The Optical Switches Market was valued at USD 5.27 billion in 2017 and is expected to reach a value of USD 11.24 billion by 2023, at a CAGR of 13.41%, over the forecast period (2018-2023).
Optical networking and communication is evolving at a rapid pace, evidenced by the robust growth witnessed across revenues of leading vendors in the market. Companies are investing heavily toward developing advanced models of optical switches and networks, which can facilitate higher data transfer in a generation where speed is considered to be of utmost importance. Optical switches progressed naturally with the increased usage of optical fiber technology. As the technology nurtured, new methods such as bubble switches, MEMS switches made their way into the market expanding the applications of optical switches towards signal monitoring and external modulation along with the switching capabilities. The need for higher data rates are expected to create a demand for all-optical interconnects, considering the fact that major cloud service providers, such as Amazon, Google, and Microsoft, open to install the equipment for future infrastructure developments. However, resistance in variation of existing applications or systems and complexity Issues are hampering the growth of the market.
Rising Adoption of Cloud-based services and Virtualization Drive the Growth
The demand for cloud services, virtualization, and edge computing is augmenting the growth of the data center market. This has led to an overflowing influx of traffic within the data centers, thus pushing operated to find improved means to interconnect rising numbers of servers and move larger amounts of data between them. Server interconnection scalability within the data center is becoming a bottleneck, and inefficient data flow scaling constrains data center growth. Operational inefficiencies caused due to product breakages are reducing server utilization and wasting critical space, powering, and cooling resources. Traditional data center, such as Optical-to-electrical-to-optical (OEO) switches and Ethernet routers have limited scalability and cannot keep up with growing intra-data center traffic bandwidth demands. Further, the logistics of deploying and managing miles of optical fiber required is not considered feasible. Thus, data centers are increasingly looking for scalable, low-latency hybrid OEO, and Optical-to-optical-to-optical (OOO) switching solutions that leverage the strengths of OEO switches and routers and OOO switching platforms.
The Asia Pacific is Expected to Witness Fastest Growth
The Asia Pacific is the most significant market for mobile communications and mobile devices in the world. The region has been racing against giants like North America in terms of smartphone and other mobile devices consumption. With countries like India and China exceeding the consumption numbers of US in the last three years, Asia Pacific region is currently on top of the charts for mobile devices market. As the number of mobile devices grew in the region, so did the number of services providers. This factor elevated the construction and setup of high-speed fiber networks in the region leading to increased consumption of optical switches. The 5G technology demands 100% optical fibers, which increases the demand for optical switches for smooth data transmission and low latency.
Promising trends and government regulation in Asia Pacific countries like India, China, and Indonesia create a positive outlook for the communications industry in the region. In India, according to the recent budget plan, the import duties on electronics were increased by two folds to encourage the Make in India campaign. India, as of 2017, had fiber access only in 50% of its base stations. In addition, 5G is anticipated to hit the Indian telecom market by 2020, providing considerable scope for the need of optical fiber and switches in network infrastructure.
Key Developments in the Market
- Jul 2018 - Nokia has partnered with the Globe Telecom of the Philippines, Nuage Networks, to provide a nationwide SD-WAN service to both large enterprise customers and SMBs. The Nuage Networks’ Virtualized Network Services (VNS), SD-WAN solution, automates branch site connectivity to help Globe Telecom's customers create a single, secure cloud environment across multiple sites and access technologies.
- Apr 2018 - Cisco has collaborated with China United Network Communications Group Co. Ltd (China Unicom), to enable Cloud + Network Synergy with segment routing. They have recently achieved the milestone in pursuing network transformation, based on Industrial Internet.
Major Players: Nokia Corporation, Cisco Systems Inc., Huawei Technologies Co Ltd, Ciena Corporation, Infinera Corporation, ADVA Optical Networking SE, ZTE Corporation, Fujitsu Ltd, Coriant GmbH, Hewlett Packard, Enterprise Co, Keysight Technologies Inc, Ericsson Inc, and Juniper Networks Inc., among others.
Global Optical Switches Market Report Summary
Global Optical Switches Market
Market Size in 2017
USD 5.27 billion
Market Size in 2023
USD 11.24 billion
Optical Switches Market offers the latest trends, growth prospects, industry competitiveness, major players, value/supply chain, regional market share and forecast to 2023.
Reasons to Purchase this Report
- Current and future optical switches market outlook in the developed and emerging markets
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- The segment that is expected to dominate the market
- Regions that are expected to witness the fastest growth during the forecast period
- Identify the latest developments, market shares and strategies employed by the major market players.
- 3 months analyst support along with the Market Estimate sheet (in excel).
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1.1 Executive Summary
1.2 Scope of Study
2. Research Approach and Methodology
2.1 Study Deliverables
2.2 Study Assumptions
2.3 Analysis Methodology
2.4 Research Phases
3. Market Insights
3.1 Market Overview
3.2 Industry Value Chain Analysis
4. Market Dynamics
4.1 Introduction to Market Dynamics
4.2 Factors Driving the Market
4.2.1 High Cost of Maintenance and Equipment for Deploying the Optical Network
4.2.2 Increasing Internet Penetration and Data Traffic of Mobile Devices
4.3 Factors Restraining the Market
4.3.1 Resistance in Variation of Existing Applications or Systems
4.3.2 Complexity Issues
4.4 Market Opportunities
4.4.1 Emergence of Ultra-high Capacity Optical Network
4.5 Industry Attractiveness – Porter’s Five Forces
5. Technology Overview
6. Global Optical Switches Market-Segmented by Type
6.1 All Optical Switch (OOO)
6.2 Electro Optical Switch (OEO)
7. Global Optical Switches Market-Segmented by Application
7.1 Optical Switching
7.2 Fiber Restoration and Optic Component Testing
7.3 Optical Add - Drop Multiplexing
7.4 Network Monitoring
7.5 Optical Cross - Connects (OXC)
7.6 Others (External Modulators)
8. Global Optical Switches Market-Segmented by Technology
8.1 Mechanical Optical Switch
8.2 Micro Electronics Mechanical Switch (MEMS)
8.3 Liquid Crystal Optical Switch
8.4 Bubble Switch
8.5 Thermal Optical Switch
8.6 Semiconductor Optical Amplifiers Switch
8.7 Other Technologies
9. Global Optical Switches Market-Segmented by Geography
9.1 North America
9.1.1 United States
9.2.1 United Kingdom
9.2.6 Rest of Europe
9.3 Asia Pacific
9.3.4 South Korea
9.3.6 Rest of Asia Pacific
9.4 Latin America
9.4.4 Rest of Latin America
9.5 Middle East and Africa
9.5.1 United Arab Emirates
9.5.2 Saudi Arabia
9.5.4 Rest of Middle East and Africa
10. Competitive Landscape - Key Vendor Profiles
10.1 Nokia Corporation
10.2 Cisco Systems Inc.
10.3 Huawei Technologies Co. Ltd
10.4 Ciena Corporation
10.5 Infinera Corporation
10.6 ADVA Optical Networking SE
10.7 ZTE Corporation
10.8 Fujitsu Ltd
10.9 Coriant GmbH
10.10 Hewlett Packard Enterprise Co.
10.11 Keysight Technologies Inc.
10.12 Ericsson Inc.
10.13 Juniper Networks Inc.
11. Investment Analysis
12. Future of the Market