The report "Optical Communication and Networking Equipment Market by Component (Fiber, Transceiver, and Switch), Technology, Application (Telecom, Data Center, and Enterprise), Data Rate, Vertical, and Region - Global Forecast to 2025", was valued at USD 18.9 billion in 2020 and is projected to reach USD 27.8 billion by 2025; it is growing at a CAGR of 8.0% from 2020 to 2025. Rising adoption of cloud-based services and virtualization services all over the world, increasing data traffic due to increased internet usage, and growing number of data centers are the factors driving the optical communication and networking equipment market growth.

The optical communication and networking market for optical transceivers is expected to grow the highest CAGR during the forecast period

The demand for optical transceivers is expected to grow at the highest CAGR during the forecast period due to the introduction and adoption of new applications such as wearable devices, IoT, and cloud computing owing to the change in consumer needs. The increasing internet penetration and data traffic are leading to the rapid growth of data centers, along with the need for high transmission networks. Optical transceivers are used to upgrade telecommunications networks and launch very large mega data centers.

The optical communication and networking equipment market for datacenter application to grow at highest CAGR during the forecast period

The market for data center applications is expected to grow at the highest CAGR during the forecast period. The growth of this market can be attributed to the increasing adoption of cloud computing as a mainstream deployment option and growing demand for high-speed internet by the users of smartphones and other connected devices. There is a rapid increase in internet traffic in mega data centers too. Mega data centers are operated primarily by leading companies, such as Amazon (US), Apple (US), Facebook (US), Google (US), and Microsoft (US).

The Americas to hold the largest share of the optical communication and networking market during the forecast period

The Americas accounted for a major share of the overall optical communication and networking equipment market in 2019. The Americas region has emerged as a major data center, and cloud computing hub, which has ultimately made the region the largest consumer of optical communication and networking equipment as the data center is the leading application of this market. Factors such as the robust presence of major companies in the region; high demand for data communication; increased use of communication devices, such as smartphones, tablets, and VoIP equipment; as well as the growing market for wearable devices and increasing deployment of data centers drive the growth of the optical communication and networking equipment industry in this region.


The major players in the optical communication and networking equipment market are Huawei Technologies Co. (China), Nokia (Finland), Cisco (US), Ciena (US), ADTRAN (US), ZTE (China), Broadcom (US), Finisar (US), Fujitsu Optical Components (Japan), Infinera (US), ADVA Optical Networking (Germany), NEC (Japan), Juniper Networks (US), Ericsson (Sweden), Corning (US), and Coriant (US). The key innovators in the market are Lumentum Operations (US), Calix (US), Oclaro (US), Arista Networks (US), NeoPhotonics (US), Mitsubishi Electric (Japan), and ECI Telecom (Israel).