NEW YORK, Feb. 15, 2023 /PRNewswire/ -- According to Technavio, the global optical network hardware market size is estimated to grow by USD 6,074.53 million from 2022 to 2027. The market is estimated to grow at a CAGR of 7.43% during the forecast period. Moreover, the growth momentum will accelerate. North America will account for 36% of the growth of the global market during the forecast period. The report includes historic market data from 2017 to 2021. In 2017, the optical network hardware market was valued at USD 11,361.03 million. The report also provides a comprehensive analysis of growth opportunities at regional levels, new product launches, the latest trends, and the post-pandemic recovery of the global market. For more insights on the market, request a sample report.

Optical network hardware market - Five forces
The global optical network hardware market is fragmented, and the five forces analysis covers–

• Bargaining power of buyers

• The threat of new entrants

• Threat of rivalry

• Bargaining power of suppliers

• Threat of substitutes

• For an interpretation of Porter's five forces model – Buy the report!

Optical network hardware market – Customer landscape 

The report includes the market's adoption lifecycle, from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Optical network hardware market - Segmentation assessment

Segment overview
Technavio has segmented the market based on type (broadband infrastructure, fiber optic network, data center, and smart cities) and application (WDM and SONET/SDH).

• The broadband infrastructure segment will account for a significant share of the market's growth during the forecast period. This growth will be accelerated by the increasing penetration rate of the internet and smartphones. In addition, the use of bandwidth in finance, media, and automation has increased significantly. The advent of IoT will fuel the demand for seamless data transmission, which requires high bandwidth. These factors are expected to increase the use of optical transport networks, which will drive the demand for broadband infrastructure during the forecast period.

Geography overview
Based on geography, the global optical network hardware market is segmented into North America, APAC, Europe, Middle East and Africa, and South America. The report provides actionable insights and estimates the contribution of all regions to the growth of the global optical network hardware market.

• North America is estimated to account for 36% of the growth of the global market during the forecast period. The demand for fiber-optic connections from residential and business customers is increasing. The growth of the communications industry is driven by the increasing use of the internet for purposes such as online gaming, social media, video chatting, and online shopping. As a result, there is a high need for bandwidth from metros and urban areas. In addition, the advent of IoT will fuel the demand for seamless data transmission. All these factors are expected to increase the use of optical transport networks, which will drive the regional market's growth during the forecast period

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Optical network hardware market – Market dynamics
Key factor driving market growth

• The high demand for data centers is driving market growth.

• A rise in investments in data centers is fueling the demand for new optical modules to meet the demand for high bandwidth, low power, and wider reach.

• Hence, there is a demand for high duplex throughput to accommodate the growing requirement of data management.

• Analytics applications and other complex cloud-based applications need high-speed internet connectivity.

• Moreover, data centers owned by enterprises require energy-efficient and high-performance storage infrastructure. Fiber-optic network hardware is a key element of these data centers.

• These factors will drive the global market during the forecast period.

Leading trends influencing the market 

• Emerging new-age technologies and their requirements for scaling business opportunities are key trends in the market.

• The growing penetration of the IoT is expected to have a positive impact on the growth of the global market.

• IoT needs high-speed connectivity to ensure the delivery of optimum service, which is achieved with the use of a fiber network.

• Optical network hardware can also enable cost-effective scaling options for internet infrastructure to accommodate the growing network traffic.

• Such factors are expected to support the growth of the global market during the forecast period.

Major challenges hindering the market growth

• The lack of OTN standards is challenging market growth.

• Growth, expansion, and interconnection across networks have led to issues related to standardization.

• There is a lack of a common mapping structure, which has compelled carriers to de-multiplex client traffic into the lowest form at the carrier boundaries.

• In addition, the non-availability of standard fault detection and alarm indication indicates that faults cannot be communicated to other portions of the network.

• As a result, consumers complain about poor signals, and carriers have no knowledge about the fault.

• Such concerns hinder the functioning of a network and the selling of mission-critical services, which will impede the market's growth during the forecast period.

Drivers, trends, and challenges have an impact on market dynamics, which can impact businesses. Find more insights in a sample report!

What are the key data covered in this optical network hardware market report?

• CAGR of the market during the forecast period

• Detailed information on factors that will drive the growth of the optical network hardware market between 2023 and 2027

• Precise estimation of the size of the optical network hardware market and its contribution to the parent market

• Accurate predictions about upcoming trends and changes in consumer behavior

• Growth of the optical network hardware market across North America, APAC, Europe, Middle East and Africa, and South America

• A thorough analysis of the market's competitive landscape and detailed information about vendors

• Comprehensive analysis of factors that will challenge the growth of optical network hardware market vendors

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Table of contents

1 Executive Summary

• 1.1 Market overview

2 Market Landscape

• 2.1 Market ecosystem

3 Market Sizing

• 3.1 Market definition

• 3.2 Market segment analysis

• 3.3 Market size 2022

• 3.4 Market outlook: Forecast for 2022-2027

4 Historic Market Size

• 4.1 Global optical network hardware market 2017 - 22021

• 4.2 Type Segment Analysis 2017 - 22021

• 4.3 Application Segment Analysis 2017 - 22021

• 4.4 Geography Segment Analysis 2017 - 22021

• 4.5 Country Segment Analysis 2017 - 22021

5 Five Forces Analysis

• 5.1 Five forces summary

• 5.2 Bargaining power of buyers

• 5.3 Bargaining power of suppliers

• 5.4 Threat of new entrants

• 5.5 Threat of substitutes

• 5.6 Threat of rivalry

• 5.7 Market condition

6 Market Segmentation by Type

• 6.1 Market segments

• 6.2 Comparison by Type

• 6.3 Broadband infrastructure - Market size and forecast 2022-2027

• 6.4 Fiber optic network - Market size and forecast 2022-2027

• 6.5 Datacenter - Market size and forecast 2022-2027

• 6.6 Smart cities - Market size and forecast 2022-2027

• 6.7 Market opportunity by Type

7 Market Segmentation by Application

• 7.1 Market segments

• 7.2 Comparison by Application

• 7.3 WDM - Market size and forecast 2022-2027

• 7.4 SONET/SDH - Market size and forecast 2022-2027

• 7.5 Market opportunity by Application

8 Customer Landscape

• 8.1 Customer landscape overview

9 Geographic Landscape

• 9.1 Geographic segmentation

• 9.2 Geographic comparison

• 9.3 North America - Market size and forecast 2022-2027

• 9.4 APAC - Market size and forecast 2022-2027

• 9.5 Europe - Market size and forecast 2022-2027

• 9.6 Middle East and Africa - Market size and forecast 2022-2027

• 9.7 South America - Market size and forecast 2022-2027

• 9.8 US - Market size and forecast 2022-2027

• 9.9 China - Market size and forecast 2022-2027

• 9.10 Germany - Market size and forecast 2022-2027

• 9.11 India - Market size and forecast 2022-2027

• 9.12 UK - Market size and forecast 2022-2027

• 9.13 Market opportunity by geography

10 Drivers, Challenges, and Trends

• 10.1 Market drivers

• 10.2 Market challenges

• 10.3 Impact of drivers and challenges

• 10.4 Market trends

11 Vendor Landscape

• 11.1 Overview

• 11.2 Vendor landscape

• 11.3 Landscape disruption

• 11.4 Industry risks

12 Vendor Analysis

• 12.1 Vendors covered

• 12.2 Market positioning of vendors

• 12.3 Adtran Inc.

• 12.4 ADVA Optical Networking SE

• 12.5 ALE International

• 12.6 Ciena Corp.

• 12.7 Cisco Systems Inc.

• 12.8 FiberHome Telecommunication Technologies Co. Ltd.

• 12.9 Fujitsu Ltd.

• 12.10 Huawei Technologies Co. Ltd.

• 12.11 Infinera Corp.

• 12.12 Juniper Networks Inc.

• 12.13 NEC Corp.

• 12.14 Nokia Corp.

• 12.15 TE Connectivity Ltd.

• 12.16 Telefonaktiebolaget LM Ericsson

• 12.17 ZTE Corp.

13 Appendix

• 13.1 Scope of the report

• 13.2 Inclusions and exclusions checklist

• 13.3 Currency conversion rates for US$

• 13.4 Research methodology

• 13.5 List of abbreviations

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