Global Optical Wavelength Services Market Grows at a Staggering CAGR of 9.78%

Introduction

An optical wavelength service is a high bandwidth, point-to-point delivery service based on fiber optics. With the help of dense-wavelength division multiplexing (DWDM) technology, many high-bandwidth channels can be transmitted over a single fiber strand. Having numerous businesses use a single fiber strand can reduce the cost of setting up and maintaining a separate fiber channel.

Market Dynamics

Rising Demand for Internet Drives the Global Market

According to Huawei's GIV report, there may be more than 100 billion connected objects on the globe by 2050. Due to the significant increase in IoT devices in internet demand, a strong network is required. Additionally, Cisco predicts that by 2023, linked home applications will represent 48%, or almost half, of all M2M connections, illustrating the widespread use of M2M's. These include tracking, connected white goods, security, home automation, and security applications. Governments all over the world have actively promoted using the internet. The growing demand for the internet drives the global optical wavelength services market over the forecast period.

Growing Demand for High Rate of Data Transmissions Creates Tremendous Opportunities

The introduction of applications that use significant-high data rate transmission between systems is primarily responsible for the overall increase, driven by several sources. High data rate transmissions are made possible by several services, including Asynchronous Transfer Mode (ATM), Public Internet Service (PIP), Virtual Private LAN Service (VPLS), Internet Protocol Virtual Private Network (IP VPN), Private Internet Service (PIP), Asynchronous Transfer Network (SONET), Ethernet, Storage Transport Services, and Wavelength Services. Over the past few years, there has been a steady increase in demand from wholesale service providers, large Internet service providers (ISPs), and the wireless industry to expand their network. This demand is expected to continue over the forecast period.

Regional Analysis

Asia-Pacific is the most significant shareholder in the global optical wavelength services market and is expected to grow at a CAGR of 11.22% during the forecast period. As part of its digital transformation, Asia-Pacific is enhancing its communication infrastructure. End-to-end wavelength services are in high demand, driven by the region's IT firms. Over the forecast period, increased LAN and WAN connectivity will support regional market expansion. Demand for optical wavelength services is being driven by data center traffic management. China's internet data centers are anticipated to expand at least 22 times that of the United States, or ten times that of Japan, in terms of data center space per user. The rising need for internet data center services boosts the market's expansion.

North America is expected to grow at a CAGR of 8.80%, generating USD 2.43 billion during the forecast period. North America has significantly impacted the growth of the global market for optical wavelength services because of the area's high internet penetration and expanding communication infrastructure. These trends require better connectivity, which raises local demand for optical wavelength services. In addition, the region has many reputable vendors, which helps the market grow. Zayo Group Holdings, Inc., Verizon Communications, Inc., Crown Castle, Inc., Charter Communications, Inc., Cox Communications, and CarrierBid Communications are a few of these businesses. The high adoption rate of cutting-edge technologies in the US, including AI, 5G, IoT, and high-performance computing, is also boosting the demand for a high data transmission rate.

Key Highlights

• The global optical wavelength services market was valued at USD 3.68 billion in 2021. It is expected to reach USD 8.52 billion by 2030, growing at a CAGR of 9.78% during the forecast period (2022–2030).
• Based on bandwidth, the global optical wavelength services market is bifurcated into less than 10 Gbps, 40 Gbps, 100 Gbps, and more than 100 Gbps. The less than 10 Gbps segment is the highest contributor to the market and is expected to grow at a CAGR of 10.06% during the forecast period.
• Based on the fiber channel interface, the global optical wavelength services market is bifurcated into OTN, SONET, and Ethernet. The Ethernet segment owns the highest contributor to the market and is expected to grow at a CAGR of 9.49% during the forecast period.
• Based on organization size, the global optical wavelength services market is bifurcated into small and medium-sized enterprises and large enterprises. The large enterprise segment is the highest contributor to the market and is expected to grow at a CAGR of 4.42% during the forecast period.
• Asia-Pacific is the most significant shareholder in the global optical wavelength services market and is expected to grow at a CAGR of 11.22% during the forecast period.

Competitive Players

Competitive Players

The global optical wavelength services market’s major key players are Nokia Corporation, Zayo Group Holdings Inc., Verizon Communications Inc., GTT Communications Inc., AT&T Inc., Lumen Technologies Inc., T-Mobile US Inc., Crown Castle Inc., Comcast Corporation, Charter Communications Inc., Windstream Holdings Inc., Colt Technology Services Group Limited, Cox Communications Inc., Jaguar Network SAS, and CarrierBid Communications.

Recent Developments

Market News

• In November 2022, To upgrade and improve the 1,200 km networking link between Sydney to Melbourne, operator Optus announced it would install Nokia IP and optical network technology, including an 1830 photonic service switch (PSS), utilizing photonic service engines (PSE) and turnkey engineering services.
• In October 2022, Zayo Group Holdings, Inc., a leading global communications infrastructure platform, announced the launch of its Edge Network Solutions portfolio to assist businesses in improving the user journey from the end-user to the cloud. This will enable better network performance, security, and reliability.

Segmentation

Global Optical Wavelength Services Market: Segmentation

By Bandwidth

• Less than 10 Gbps
• 40 Gbps
• 100 Gbps
• More than 100 Gbps

By Fiber Channel Interface

• OTN
• SONET
• Ethernet

By Organization Size

• Small- and Medium-sized Enterprises
• Large Enterprises

By Regions

• North America
• Europe
• Asia-Pacific
• Rest of the World