According to a study published by Insure Insights, the global synchronous optical networking market is anticipated to grow at a high CAGR. Synchronous optical networking is an optical fiber network that co point-to-point and ring network for delivering high-speed networking solutions to many industries. Synchronous optical networking offers a cost-effective medium to the end-users for transferring a massive volume of data with the aid of an optical carrier network (OCN). It offers pre-emptive performance monitoring that avoids single and multiple failures and permits self-healing functions and robust network management.

Top Driver: Increasing Adoption of Optical Communication and Increase in Cloud Storage Adoption

The major drivers stimulating the growth of the synchronous optical networking market are the increasing adoption of optical communication, reduction in capital investment, and rising need for faster and reliable communication networks. Moreover, an increase in cloud storage adoption by different organizations and an increase in demand for digital data traffic over the existing network are other key factors anticipated to create a lucrative opportunity for the synchronous optical networking market players. On the other hand, the high installation cost of optical networks hampers market growth.

Aerospace and Defense to Make Crucial Contribution to Growth of the Market

On the basis of industry vertical the global synchronous optical networking market can be segmented into Aerospace & Defense, Manufacturing, Oil & Gas, Energy & Utilities, Others. Aerospace and defense is expected to be the fastest growing segment owing to increasing need for technological advancements in the industry. On the basis of type the market can be segmented into Fiber Optic Circulators, Optical Amplifiers, Optical Splitters, Optical Fiber, Optical Transceiver, Others. On the basis of technology, the market is segmented into Time Division Multiplexing, Dense Wavelength Division Multiplexing.

Rising Investments For Better Network to Benefit North America Market

North American countries such as the US are predicted to maximize their spending on improving the network which would help the market to gain significant shares in the forecast period. The increase in the demand for the high-speed bandwidth which would help the industry flourishes in the coming years. The rise in cloud storage adoption by different organizations is anticipated to propel the industry in the next few years.

Players to Focus on Synchronous Optical Networking Market

The global market is expected to stay fragmented with the increase in the number of new entrants in the coming years. Cisco Systems Inc., Alcatel- Lucent Inc., Verizon Communications Inc., ADVA, Optical Networking SE, Clena Corporation, Ericsson Inc., Fujitsu Ltd., Huawei Technology Co. Ltd., JDS Uniphase Corporation, and MRV Communications Inc. among others could be at the forefront of the competition in the global market.

Cisco: In July 2019, Cisco and Acacia Communications announced they had entered into a definitive agreement under which Cisco has agreed to acquire Acacia. An existing Cisco supplier, Acacia designs and manufactures high-speed, optical interconnect technologies that allow webscale companies, service providers, and data center operators to meet the fast-growing consumer demands for data.

ADVA Optical Networking: In July 2017, ADVA Optical Networking announced that it had entered into a definitive agreement to acquire MRV Communications, Inc. Under the terms of the agreement, ADVA Optical Networking will make a tender offer of USD 10.00 per share for all the outstanding common stock of the California-based provider of innovative network solutions for data center operators, service providers and enterprises. The offer equates to an aggregate purchase price of USD 69 million and has been approved and unanimously recommended by both the board of directors of ADVA Optical Networking and the board of directors of MRV Communications, Inc.

Scope of the Report

By Type

• Fiber Optic Circulators
• Optical Amplifiers
• Optical Splitters
• Optical Fiber
• Optical Transceiver
• Others

By Technology

• Time Division Multiplexing
• Dense Wavelength Division Multiplexing

By Industry Vertical

• Aerospace & Defense
• Manufacturing
• Oil & Gas
• Energy & Utilities
• Others

By Region

• North America
• Europe
• Asia Pacific
• SAMEA

Key Reasons to Purchase this Report

1. It provides a technological development map over time to understand the growth rate of the industry.
2. The report offers a dynamic method to various factors that drive or restrain the growth of the market.
3. It renders definite analysis for changing competitive dynamics.
4. It builds a seven-year estimate based on how the market is predicted to grow.