The Optical Wavelength Services Market is expected to grow at a CAGR of 9. 5% from 2021 to 2026. Optical Wavelength Services (OWS) are fiber networking solutions that give customers with dedicated broadband, framing-independent transport networks.
New York, March 17, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Optical Wavelength Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06036768/?utm_source=GNW
- The advent of the Internet of Things (IoT) and developing automation trends have exponentially enhanced data traffic, whereby creating expanded bandwidth demands for large companies and Small and Medium-sized Enterprises (SMEs) acknowledging the need for OWS.
- According to Cisco Systems Inc., the average smartphone will produce 11 GB data traffic per month, by 2022, which is more than a four and a half-fold jump over the 2017 average of 2 GB data per month. The rise in mobile traffic will generate a massive opportunity for the optical transport network market.
- Besides the growing need for high-speed internet and fiber optics, communication has become the spine, enhancing the demand for OWS. Progressions in technology with regards to communication standards are anticipated to generate opportunities for OWS vendors. For instance, in 2019, Comcast Corporation delivered high-speed internet access to 28.63 million customers.
- Optical Transport Network (OTN) interface to record the highest growth during the forecast period. With the advancements in the Internet of Things (IoT) and Machine-to-Machine (M2M) communications, a substantial amount of data is expected to be generated. Hence in return, this will provide significant growth potential for the optical transport network market.
- According to Forbes, the total installed base of the Internet of Things (IoT) connected devices is forecasted to amount to 75.44 billion globally by 2025. The next-generation mobile connection technology 5G, with a predicted number of 1.3 billion subscriptions by 2023, would be a significant boost for the application of IoT in everyday life.
- However, market growth is restricted by factors, such as increasing demand for virtual connectivity. Besides, the limited availability of incremental bandwidth of optical wavelengths for data transfer and business communication is also anticipated to hinder the growth of the optical wavelength services market.
- The companies adopt the optical wavelengths services to provide better signal quality and services to the viewer and customers. For transmitting the video conferencing signal with high quality, the commercial sectors adopt the optical wavelengths services during the period of COVID-19 in 2020.
Key Market Trends
Optical Transport Network (OTN) Interface to Record the Highest Growth Rate
- OTN gives numerous benefits over traditional WDM transponder-based networks, including reliability, improved efficiency, and protected wavelength-based private services. Furthermore, OTN switches at fiber junctions facilitate the optimal use of the optical spectrum.
- The telecommunications business and service provider networks are swiftly starting to deal with the burst of digital traffic driven by mobile applications, multimedia services, VoIP, social media, and cloud computing. Also, there is a burgeoning array of bandwidth-hungry applications. Therefore, the growth of digital traffic will have a positive influence on the optical transport network interface.
- Moreover, the performance enhancements proposed by 5G have deemed an essential element in the expansion of the Internet of Things. Entirely new applications, including augmented reality, virtual reality, and autonomous vehicle management, will need the agility and reliability promised by 5G.
- Furthermore, with its software-centric network paradigm, the emerging cloud architecture offers possibilities for telecom merchants and service providers to grow and produce innovative products and services that can add to the overall growth of the global telecom industry. These developments will collectively put greater interest in the mobile data transport network and have a resolute force on the optical network architecture to better accommodate these requirements.
Asia Pacific to Hold Dominant Share of the Market
- The Asia Pacific region upgrades the communication technology infrastructure at breakneck speed as a part of digital transformation. The presence of a large number of IT businesses in the area and rising demand for end-to-end wavelength services are very high, driving this sector’s growth. The expanding LAN & WAN connectivity, high usage in financial data transfer, and offset backup data encourage the growth of the market in the area during the forecasted period.
- Many developing country’s governments are taking initiatives to encourage the development of the communication infrastructure in their respective countries, driving the growth of the optical wavelength service market. Countries like India, China, and Japan are some prominent countries in the APAC region’s optical wavelength service development field.
- Governments of several emerging nations are also taking initiatives to promote or expedite the development of communication infrastructure in these countries. Asia-Pacific is growing a manufacturing center for most of the firms due to the attendance of low-cost labor and a vast penetration rate of Industry 4.0 movement. In Asian nations, governments proactively support the development of new businesses. For instance, “Made in China 2025” is an initiative to comprehensively promote the Chinese industry to facilitate the realization of Industry 4.0.
- According to the Economist Intelligence Unit (EIU), people living in Asia actively support technology, and it has entered all perspectives of their daily activities far more intensely than in many other parts of the world. Such penetration will encourage the telecom providers to give more powerful network connection speeds, which, in turn, will promote the Optical Wavelength Services to grow.
The Optical Wavelength Services Market is moderately competitive and the major players have used various strategies such as expansions, agreements, joint ventures, new product launches, partnerships, acquisitions, and others to expand their footprints in this market. A few of the principal competitors currently operating in the optical wavelength services market are Zayo Group, Nokia, CenturyLink, Verizon Wireless, CenturyLink, Windstream Communications, Sprint.com, and Charter Communications among others.
- June 2020 - Zayo Group Holdings announced four new long-haul optical wavelength routes in the United States that will provide multiple terabits of capacity for customers in diverse sectors. Investment in the four routes, all of which are scheduled to be completed this year, was made based on strong demand from Zayo’s customers, who continue to look for physical and vendor diversity as well as new, lower latency pathways.
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