Optical Wavelength Services Market Size
| Study Period | 2019-2029 |
| Market Size (2024) | USD 4.84 Billion |
| Market Size (2029) | USD 8.42 Billion |
| CAGR (2024 - 2029) | 11.71 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Optical Wavelength Services Market Analysis
The Optical Wavelength Services Market size is estimated at USD 4.84 billion in 2024, and is expected to reach USD 8.42 billion by 2029, growing at a CAGR of 11.71% during the forecast period (2024-2029).
Global data volumes projected to double during forecasted year, there is a growing need to focus on cost and power consumption per bit. Extending large wavelengths across longer distances can make services more cost-effective and efficient for end-users. Larger wavelengths also provide significant network bandwidth expansion, essential to power high-definition content, 5G cell networks, IoT, remote work, and other applications.
- The demand for fiber-to-home (FTTH) systems is increasing, accelerating the deployment of network connections not just in urban areas but also in rural and remote locations. These investments lead to more robust competition among cable companies to create a denser, higher-performance wireless network and high wavelength services.
- In February 2023, Fujitsu launched the Ultra Optical System called 1FINITY, a hyper-reliable optical transport platform delivering extreme performance and scalability with data rates of 1.2 terabits per second (Tbps) on a single wavelength. This platform helps to reduce power consumption and achieve a 60% reduction of CO2 emissions throughout networks.
- Despite the benefits of implementing FTTH more extensively across networks, carriers are still discouraged by the cost of installing additional fiber and the end-users' optical modems. As the industry transitions to larger bandwidths, such as 50G and 100G, which require coherent technology in the modems, this cost issue will worsen.
- Even after the Covid-19 pandemic, network operators continue to add more gear and capacity to support remote work, cloud-based services, streaming video, IoT, and 5G wireless technology. This increasing demand for data and high-speed networks with uninterrupted supply drives Network Solution providers to adopt high wavelengths that can quickly scale up capacity to address traffic bottlenecks or combat slower data transfer speeds.
Optical Wavelength Services Market Trends
Less than 10 Gbps Bandwidth Segment is Expected to Hold Significant Market Share
- Bandwidth-intensive applications demand high-performance connectivity. Wavelength services are essential in developing fiber optic transmission technology and can increase a single fiber's capacity to a throughput of 100 Gbps and beyond. The technology combines network management systems to enable carriers to adopt optically-based network infrastructures to meet future bandwidth demands.
- In currently deployed optical networks based on single-core fibers, the data transmission rate can be increased by using either a larger per-channel bit rate or increasing the number of available channels within a particular transmission spectrum.
- Coherent WDM technology is a highly advanced optical transmission technology that offers numerous benefits, including higher bit rates, greater flexibility, simpler DWDM line systems, and better optical performance. This technology has enabled the development of cost-effective and highly reliable optical transport in DWDM networks, with wavelength speeds increasing from 10 Gb/s in the pre-coherent era to 100 Gb/s, 200 Gb/s, and now even 400 or 800 Gb/s with the latest coherent optical equipment.
- CWDM and DWDM are two different methods for addressing the increasing bandwidth requirements for information transmission. DWDM employs a larger number of narrower wavelength bands or channels, while CWDM uses broader wavelength bands per channel.
- According to the of Communications (Ofcom), the government-approved regulatory and competition authority for the broadcasting, telecommunications, and postal industries of the United Kingdom. The average person uses around 2.9GB of data per month, and this demand is continuously increasing with the evolution of digitalization. However, this confirms that 10Gb/s is more than enough for the average phone user.
- In February 2023, StarHub, the Singaporean telco, introduced ultra-speed broadband with up to 10 times the speed and bandwidth of standard broadband services in Singapore. This high-speed broadband service will significantly enhance household connectivity, providing optimal responsiveness for online gaming and lightning-fast content streaming.
Asia Pacific is Expected to Hold Significant Market Share
- India and China are the two countries that account for nearly half of the world's mobile traffic, while North America and Europe together only account for a quarter of the global mobile data services. India, in particular, has emerged as a major player in the mobile data services market, with the highest mobile data consumption rate of 12 GB/user a month globally.
- Moreover, India witnesses a remarkable increase of 25 million new smartphone users every quarter, making it a crucial market for mobile data services. This surge in smartphone usage has led to an average data consumption rate of 19.5 GB per user per month in 2022, indicating a growing demand for data-driven applications and services. This trend highlights India's position as a key player in the global mobile data market, with enormous potential for further growth and innovation in the future.
- The strong growth of mobile data services has also fueled demand for 5G devices, with private enterprise spending on 5G networks leading to robust shipments of these devices in India. It is estimated that over 70 million 5G devices have been shipped to India, and the country's investment in private wireless networks is expected to reach approximately USD 250 million by 2027. This will encourage telecom providers to offer more powerful network connection speeds, which, in turn, will promote the growth of Optical Wavelength Services.
- Governments in developing nations are taking initiatives to encourage the development of communication infrastructure in their countries. The Asia-Pacific region, in particular, is becoming increasingly popular as a hub for manufacturing due to its cheap labor and high adoption rate of the Industry 4.0 movement. Governments in Asian countries are aggressively promoting the growth of new firms, with programs like "Made in China 2025" designed to broadly support Chinese manufacturing and the implementation of Industry 4.0.
Optical Wavelength Services Industry Overview
The Optical Wavelength Services Market currently experiences moderate competition, but this sector is expected to grow as vendors plan new product launches, partnerships, and acquisitions. Some of the market leaders in this segment include Zayo Group, Nokia, Century Link, Verizon Wireless, Century Link, and Windstream Communications. Compared to other network setups, optical wavelength networks offer a scalable solution that can quickly increase capacity to combat slower data transfer speeds or address traffic bottlenecks.
In February 2023, Nokia announced a collaboration with GlobalConnect fiber networks to conduct trials of its sixth-generation super-coherent Photonic Service Engine in real-world environments. These trials aim to achieve 1.2Tb/s over metro distances of 118km and 800Gb/s over a long-haul distance of 2,019km, both using a single wavelength. By deploying this technology, network power consumption can be reduced by up to 60%, and the total cost of network ownership can be reduced by up to 50%.
In March 2022, Enet, a telecom network provider, signed a contract with EXA Infrastructure to establish new high-speed datacentre-to-datacentre optical network connections between Dublin and data centers in Europe and the North Atlantic. This International Wave project aims to provide price-competitive, secure, high-speed, and transparent inter-datacentre connectivity.
Optical Wavelength Services Market Leaders
Nokia Corporation
Zayo Group Holdings, Inc.
Verizon Communications Inc.
GTT Communications, Inc.
AT&T Inc.
*Disclaimer: Major Players sorted in no particular order
Optical Wavelength Services Market News
- January 2023: Lumen Technologies started distributing 400 Gbps wavelength networks in the United States. The company will serve 70 markets across the country, covering 240 data centers with more than 50 TB of 400 G wavelengths. Additionally, Lumen will provide its clients with a self-service tool that allows them to quote, design, and build their wavelengths across Lumen's North American Network.
- October 2022: LOGIX Fiber Networks and Ciena jointly launched 100G wavelength services for enterprise and carrier customers. LOGIX has been providing telecommunication solutions, and its new wavelength service will efficiently deliver the speed and capacity necessary to support the rapidly growing network demand driven by the cloud, video streaming, content consumption, and more.
Optical Wavelength Services Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assesment of Covid-19 Impact on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Demand for the Internet
5.1.2 Accelerated Bandwidth-intensive Applications
5.2 Market Restraints
5.2.1 Limited Availability of Incremental Bandwidth
5.2.2 Increasing Demand for Virtual Connectivity
6. MARKET SEGMENTATION
6.1 By Bandwidth
6.1.1 Less than 10 Gbps
6.1.2 40 Gbps
6.1.3 100 Gbps
6.1.4 More Than 100 Gbps
6.2 Geography
6.2.1 North America
6.2.2 Europe
6.2.3 Asia Pacific
6.2.4 Rest of the World
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Nokia Corporation
7.1.2 Zayo Group Holdings, Inc.
7.1.3 Verizon Communications Inc.
7.1.4 GTT Communications, Inc.
7.1.5 AT&T Inc.
7.1.6 Lumen Technologies Inc.
7.1.7 T-Mobile US Inc.
7.1.8 Crown Castle Inc.
7.1.9 Comcast Corporation
7.1.10 Charter Communications
7.1.11 Windstream Holdings, Inc.
7.1.12 Colt Technology Services Group Limited
7.1.13 Cox Communications
7.1.14 Jaguar Network SAS
7.1.15 CarrierBid Communications
7.1.16 EUnetworks Group
7.1.17 Telia Carrier
7.1.18 Exascale Limited
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Optical Wavelength Services Industry Segmentation
Multiple high-bandwidth channels can be transmitted in a single strand of fiber by using dense wavelength division multiplexing (DWDM) technology. High wavelengths are ideal for large multi-site businesses and high-capacity data center transport and carriers. To meet growing bandwidth demands, Wavelength Services expedites the introduction of optical connectivity without incurring significant upfront costs.
The global optical wavelength services market is segmented by bandwidth (less than 10 Gbps, 40 Gbps, 100 Gbps, more than 100 Gbps) and Geography (North America, Asia-Pacific, Europe, and the Rest of the World). The market sizes and forecasts are provided in terms of value (USD).
| By Bandwidth | |
| Less than 10 Gbps | |
| 40 Gbps | |
| 100 Gbps | |
| More Than 100 Gbps |
| Geography | |
| North America | |
| Europe | |
| Asia Pacific | |
| Rest of the World |
Optical Wavelength Services Market Research FAQs
How big is the Optical Wavelength Services Market?
The Optical Wavelength Services Market size is expected to reach USD 4.84 billion in 2024 and grow at a CAGR of 11.71% to reach USD 8.42 billion by 2029.
What is the current Optical Wavelength Services Market size?
In 2024, the Optical Wavelength Services Market size is expected to reach USD 4.84 billion.
Who are the key players in Optical Wavelength Services Market?
Nokia Corporation, Zayo Group Holdings, Inc., Verizon Communications Inc., GTT Communications, Inc. and AT&T Inc. are the major companies operating in the Optical Wavelength Services Market.
Which is the fastest growing region in Optical Wavelength Services Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Optical Wavelength Services Market?
In 2024, the North America accounts for the largest market share in Optical Wavelength Services Market.
What years does this Optical Wavelength Services Market cover, and what was the market size in 2023?
In 2023, the Optical Wavelength Services Market size was estimated at USD 4.27 billion. The report covers the Optical Wavelength Services Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Optical Wavelength Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Optical Wavelength Services Industry Report
Statistics for the 2024 Optical Wavelength Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Optical Wavelength Services analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
