In 2014, the global optical network equipment market had an estimated annual growth rate of 35.7%. The prime factors that drive the optical network equipment market are the amplified internet use in both commercial and residential sectors across the world.

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Increased Capacity for Internet Usage, and Decreased Data Transmission Delays, Drives Demand

Optical network equipment provides a high-capacity telecommunications network through which information is transferred as optical signals. This method of transmission has many advantages such as increased bandwidth, higher capacity for use of internet, multimedia, and videos and decreased data-transmission delays between end-points.

Optical network equipment enables millions of signals to be impressed through a process known as frequency division multiplexing or FDM. Optical networks work on wavelengths, and the components of the optical network equipment are determined by how the wavelengths are transmitted, or used in the network. Optical networking can work through a limited range of LAN or through WAN across regional areas that could include metropolitan areas and national and international or overseas distances.

Optical network equipment offers the capability to optical channels to split into many wavelengths at high speed. Due to this feature, optical networks’ capacity can be increased without any delays and bandwidth can be added in minimum time. Another significant advantage of the optical network equipment is that it is a more secure network compared to copper cables, which can be easily tapped and misused. Hence, there is an amplified demand for optical network equipment in governmental organizations, defense services, and businesses.

There has been a strong demand for metro WDM devices after the telecom bubble burst due to the augmented use of optical networking equipment. Optical network equipment offers next-generation technology with IPTV and broadband connections and these factors are bolstering the market for these network systems.

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Intensified Need for FTTH and FTTB Fuels Market

Segmentation of the optical network equipment market can be done by application, technology, and by geography. The application segments for optical network equipment market are fiber-to-the-home optical network and fiber to the building. The intensified demand for FTTB (fiber to the building) and FTTH (fiber to the home) are propelling the optical network equipment market worldwide.

Segmentation by technology comprises: ethernet PON, broadband PON, gigabit PON, and asynchronous transfer mode PON. On the basis of geography, the optical network equipment market features Europe, North America, Asia Pacific, and Rest of the World. There is continuous growth of the optical network equipment market in emerging economies due to intensified mobile internet usage and amplified household internet penetration. China is the fastest-growing region for the optical network equipment market in the Asia Pacific region.

Some of the major players in the optical network equipment market are, ZTE Corp., Sumitomo Electric Networks, Inc., Mitsubishi Electric Corp., Cisco Systems Inc., Huawei Alcatel-Lucent, Allied Telesis Inc, Broadlight Inc, Freescale Semiconductor Inc, Calix Network Inc, Fujitsu Network Communications Inc, Salira Systems, Inc, NEC Corporation, Hitachi Telecom (USA) Inc, Motorola Broadband Communications, PMC-Sierra Inc, Tellabs Inc, Oki Electric Industry Co. Ltd., and Wave 7 Optics Inc.

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