According to a new report by Zion Market Research (ZMR), the global optical network equipment market will reach in excess of $28 billion by 2024. ZMR reckons that market was worth around $16.128 billion in 2017 and will grow at a CAGR of 8.68% between 2018 and 2024.
The report includes forecasts and analysis for the optical network equipment market on a global and regional level. It provides historic data covering 2015 to 2017, along with a forecast from 2017 to 2024 based on revenue. The study includes drivers and restraints for the optical network equipment market, along with the impact they have on the demand over the forecast period.
To understand the competitive landscape in the market, an analysis of Porter’s Five Forces model for the market has also been included.
ZMR segments the market based on application, technology, and regions. By application type, the market is divided into FTTH and FTTB. On the basis of technology, the market is segmented into Asynchronous Transfer Mode PON, Broadband PON, Gigabit PON, and Ethernet PON. The regional segmentation includes the current and forecast demand for North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
The research company notes that, presently, major companies in the optical network equipment market are focusing on developments in emerging technologies, as there is a continuous increase in the use of mobile smartphones, laptops, and PCs. This gives rise to a tremendous increase in the usage of online gaming, chatting, video surfing, and online shopping. Similarly, companies providing these services are asking for more high-speed data, as there is a on-going increase in both residential as well as business customers. ZMR doesn’t believe existing networks will be able to meet this demand.
Apart from the above, factors such as emerging Terabit networking and increase in cloud storage space by many companies will drive the growth of the market. The high demand for interconnecting datacentres and adoption and deployment of 5G infrastructure are also primary growth drivers.
However, the high cost of installing optical networking equipment for operators is something of a brake on the sector, especially for smaller concerns. Interestingly, ZMR believes that that 5G-based Fixed Wireless Access will be best suited for deployment in urban areas as these areas are densely populated, and the initial installation cost of FWA technology will be lower by up to 40% compared to FTTP.