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The Market is Segmented by Type (All-Optical Switch, Electro-optical Switch), Application (Optical Switching, Fiber Restoration and Optic Component Testing, Network Monitoring), Technology, and Geography.
Fastest Growing Market:
The optical switches market was valued at USD 6.79 billion in 2019 and is expected to reach USD 17.77 billion by 2025, at a CAGR of 13.41% over the forecast period 2020 - 2025. The growing proliferation of cloud across all aspects of businesses in a diverse range of end-user industries is creating a robust demand for data center operations, as companies are increasingly investing to gain prominence in a highly contested and populated market space. Further, as major cloud content providers build out ever-larger data center facilities, the bandwidth limitations of conventional data center architectures become more apparent, throttling aggregate performance and efficiency.
Optical switches used in fiber optic transmission systems contribute to the development of the optical network. The main function of optical switching is to enable routing of optical data signals without the need for conversion to electrical signals and, consequently, is independent of data rate and data protocol. The transfer of the switching function from electronics to optics will offer a reduction in the network equipment, increase in the switching speed, and a decrease in the operating power.
|All Optical Switch (OOO)|
|Electro Optical Switch (OEO)|
|Fiber Restoration and Optic Component Testing|
|Optical Add - Drop Multiplexing|
|Optical Cross - Connects (OXC)|
|Others (External Modulators)|
|Mechanical Optical Switch|
|Micro Electronics Mechanical Switch (MEMS)|
|Liquid Crystal Optical Switch|
|Thermal Optical Switch|
|Semiconductor Optical Amplifiers Switch|
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The segment comprises of various applications of all-optical switches. Technological advancements in the all-optical switch, coupled Software Defined Network (SDN) paradigms, create compelling solutions to bring the fiber layer under software control. In addition to this, the adoption of all-optical switching in data centers facilitates both traffic provisioning and protection switching between the external network and the peering arbitrator.Moreover, in all-optical switching, any optical connection can be remotely monitored and tested and can be configured to switch automatically based on reduction, or loss, of the optical signal.
Furthermore, the incorporation of all-optical switching to C-RAN architectures allows the sharing of centralized monitoring and test equipment across multiple optical fiber front haul links interconnecting RRHs and BBUs.In 2017, China Telecom built a WDM ASON backbone network at 21 nodes throughout Jiangsu, Shanghai, Zhejiang, Hubei, Anhui, and Jiangxi. Through this project, the company deployed the first all-optical network 2.0 backbone network in the country.
The project witnessed the transformation from electric switching nodes to all-optical switching nodes. In addition, 21 ROADMs were deployed to create intelligent optical nodes, which will eventually become the optical cross-connect (OXC). Thus, potential such investments in other countries are expected to drive the demand for all-optical switches.
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The global roll out of 5G commercial services is expected to commence during 2019-2020. To support the accelerated build out of 5G in the United States, Ericsson predicts that 5G subscriptions are expected to reach the 150 million user mark, accounting for 48% of all mobile subscriptions in North America by the end of 2023.
Unlocking the full potential of 5G in the United States depends on the extension of fiber deep into the network. Despite the demand and potential economic benefits of fiber deployment, the United States currently lacks the fiber density in access networks to make the bandwidth advancements that are necessary to improve the pace of innovation and economic growth.
At the same time, an analysis based on the Deloitte Consulting LLP estimates that, the United States requires between USD 130 and USD 150 billion over the next 5-7 years to adequately support broadband competition, rural coverage, and wireless densification.
The aforementioned factors are expected to support and drive the demand for optical fiber-based broadband services, which in return aid the market growth significantly.Ericsson increased investment in 5G, AI, and automation in the United States, seeing the strategic opportunity in the market.
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The optical switches market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with prominent share in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market share and increase their profitability.
The companies operating in the market are also acquiring start-ups working on Optical Switches technologies to strengthen their product capabilities. In June 2018, Hewlett Packard Enterprise and Deutsche Telekom AG implemented the world’s first proof-of-concept network data layer (NDL), which integrates various virtual network functions (VNFs) of different vendors, in a cloud infrastructure.
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 High Cost of Maintenance and Equipment for Deploying the Optical Network
4.3.2 Increasing Internet Penetration and Data Traffic of Mobile Devices
4.4 Market Restraints
4.4.1 Resistance in Variation of Existing Applications or Systems
4.4.2 Complexity Issues
4.5 Value Chain / Supply Chain Analysis
4.6 Industry Attractiveness Porters Five Force Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Technology Snapshot
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 All Optical Switch (OOO)
5.1.2 Electro Optical Switch (OEO)
5.2 By Application
5.2.1 Optical Switching
5.2.2 Fiber Restoration and Optic Component Testing
5.2.3 Optical Add - Drop Multiplexing
5.2.4 Network Monitoring
5.2.5 Optical Cross - Connects (OXC)
5.2.6 Others (External Modulators)
5.3 By Technology
5.3.1 Mechanical Optical Switch
5.3.2 Micro Electronics Mechanical Switch (MEMS)
5.3.3 Liquid Crystal Optical Switch
5.3.4 Bubble Switch
5.3.5 Thermal Optical Switch
5.3.6 Semiconductor Optical Amplifiers Switch
5.3.7 Other Technologies
5.4.1 North America
188.8.131.52 Rest of Europe
184.108.40.206 South Korea
220.127.116.11 Rest of Asia-Pacific
5.4.4 Latin America
18.104.22.168 Rest of Latin America
5.4.5 Middle East &Africa
22.214.171.124 Saudi Arabia
126.96.36.199 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Keysight Technologies Inc.
6.1.2 Hewlett Packard Enterprise Co
6.1.3 Fujitsu Ltd
6.1.4 ZTE Corporation
6.1.5 Yokogawa Electric Corporation
6.1.6 Nokia Corporation
6.1.7 Cisco Systems Inc.
6.1.8 Huawei Technologies Co Ltd
6.1.9 Ciena Corporation
6.1.10 Infinera Corporation
6.1.11 ADVA Optical Networking SE
6.1.12 Coriant GmbH
6.1.13 Keysight Technologies Inc
6.1.14 Juniper Networks Inc
6.1.15 Ericsson Inc
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS