Global Optical Wavelength Services Market - 2021-2028
The global optical wavelength services market size was estimated to be around US$ XX million in 2020 and is estimated to reach US$ XX million in 2028, growing at a CAGR of XX% within the forecast period between 2021 and 2028.
Optical wavelength service is a point-to-point service based on fiber optics and couldprovide a high bandwidth delivery service. Optical wavelength service employs Dense wavelength division multiplexing technology (DWDM), allowing several businesses to share the same pair of optical fiber, thereby reducing deployment and maintenance costs.
The data transmitted via DWDM is initially encoded on a multitude of lasers with a unique wavelength or frequency. The combined lasers are then transmitted as a composite signal through a single optical fiber.Further, the signal is converted back to its constituents in the receiving end utilizing a de-multiplexer. Approximately 96 high bandwidth channels could be transmitted through a single strand of optical fiber and are often considered extremely fast and reliable.
The high security and performance offered by optical wavelength services could be considered one of the major market drivers. Additionally, the sizeable capacity and ease at which the network could be scaled further enhance the demand and profitability of the optical wavelength market in the forecast period.
High data security and performance
The enhancements in data security and performance offered by optical wavelength services compared to their counterparts tend to enhance the demand for optical wavelength services in the market.Data security and performance are two very important parameters for organizations in every field as the transmitted data might contain sensitive information vital to both senders and receivers. Similarly, the speed at which data is being transferred is vital and varies under the circumstances.
As per Verizon Partner Solutions, a global wholesaler of internet, voice and data, the security offered by optical wavelength services is military-grade and extremely reliable for sending sensitive information. Similarly, since optical networks have private circuits, the businesses or users relying on such networks can achieve maximum performance, speed, low latency and high capacity transfer rates.
In short, the demand for optical wavelength services is rising extensively due to their unmatched data protection as well as peak performance. Therefore, the adoption of optical wavelength services by businesses, individuals and institutions is growing, thus boosting sales and demand.
Less bandwidth incremental options
One of the major market restraints that constrict the growth of the global optical wavelength service market is the unavailability of variable bandwidth increment options. As per Ciena, a networking services, system and software company, most major global optical wavelength service market players offer plans that lease the user bandwidths in multiples of 10Gbps or 100Gbps.
However, when users or corporates want to increase or decrease their bandwidth by a tad, for instance, 2 to 5Gbps due to high or low data flow, they face various consequences due to rigidplans. Additionally, many counterparts of optical wavelength services, such as copper wavelength services, offer more flexible options. Since the market demand for optical wavelength services is constricted due to the restrictions in bandwidth incrementation options, the respective factor could be considered as a major market restraint.
The COVID-19 pandemic had an overall positive impact on the global optical wavelength market, mostly due to two major parameters. The first and foremost factor is the rapid digital expansions many a company underwent during the pandemic in order to attract customers. Such expansions made many companies dependent on optical wavelength services that offer enhanced long-distance connectivity.
Finally, since the pandemic initiated a work from home culture worldwide, the demand for optical wavelength service was further enhanced as the respective service offered better network services and clearer data transfer quality, particularly for video conferencing. As a result of these parameters, many a company switched to optical wavelength services, thereby boosting the market prospects of the global optical wavelength market.
The global optical wavelength Servicesmarketis segmented based onservice type, enterprise size, bandwidth and end-user
Extreme efficiency and multipoint configurations
Metro wavelength service offers extremely efficient data transfer solution connections within areas of the same metropolitan locations and. Additionally, the ability to form multipoint access configurations and point-to-point configurations allows the respective service to be an easier choice for businesses and entrepreneurs.
Cost-effectivity and flexibility offered by metro wavelength service allow it to be an efficient and scalable method to connect mainframes, such as data centers, thereby further boosting the market demand for metro wavelength service.
Large scale adoption of swift data transfer solutions for commercial purposes help North America to dominate the global optical wavelength services market
Ever since the pandemic, the number of small-scale business as well as business that utilizes online services to expand their market prospects increased extensively across the globe. However, North America witnessed a sufficiently higher number of such cases compared to other regions. Since such small-scale entrepreneurs and businesses seek opportunities to expand and grow, the adoption of optical wavelength services that offer efficient and effective data transfer solutions is experiencing a tremendous growth potential in the North American Region. Further, the high data transfer speed of the optical wavelength services is also a primary reason behind the expansion of the respective market in the North Americanregion.
The optical wavelength services market is highly competitive due to the presence of local and global companies. Some prime companies contributing to the market's growth areAT&T Intellectual Property, CenturyLink, Charter Communications Inc, Colt Technology Services Group Limited, Comcast, Cox Communications, Inc, Crown Castle, GTT Communications, Inc, Jaguar Network SAS, Nokia, T-Mobile USA, INC, Verizon, among others.
The major companies are adopting several growth strategies such as acquisitions, product launches and collaborations to expand their market prospect in the global optical services market.
In February 2019, Nokia and M-net, a Germany-based carrier service provider, joined hands to trial probabilistically shaped wavelengths using Nokia Photonic Service Engine 3 super coherent technology. The company intends to expand its technological horizons with the launch of the new product.
AT&T Intellectual Property
Overview: AT&T Intellectual Property is one of the oldest telecommunication companies aged around 140 years incorporated in Delaware, U.S., in 1983. The company focuses on the services and innovations in the fields of high-speed fiber, wireless broadband networks and broadband connectivity. The company employees around 231,000 persons globally.
Internet & Fiber: The company offersextremely fast fiber technology capable of producing 80% more bandwidth than cable services. The reliability of the respective fiber is 99% and is available in more than 90 metros in U.S. The respective service is currently utilized by 1 million people and is considered the fastest-growing fiber internet in U.S.
In November 2019, AT&T Intellectual Property launched a 400-gigabit optical connection between Dallas and Atlanta. The service utilizes low-cost white box hardware, which is extremely flexible. The company is improving its product portfolio and market strength with the launch of its new services
Visualize the optical wavelength services marketsegmentation byservice type, enterprise size, bandwidth and end-user.
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Target Audience 2022
Optical wavelength service providers/ Users
Business and Corporate offices
Industry Investors/Investment Bankers
Education & Research Institutes
Manufacturers and Distributors