Optical Communication Systems and Networking Market to Record CAGR of 8.2% Over 2025-2032; Use of SDN Technologies in Optical Communication Systems to Fuel Market Growth

The optical communication systems and networking market size was valued at USD 15.53 billion in 2024 and is predicted to reach USD 16.78 billion in 2025. The market is anticipated to touch USD 29.52 billion by 2032, recording a CAGR of 8.2% over 2025-2032.

Fortune Business Insights™ presents this information in its latest report titled “Optical Communication Systems and Networking Market Size, Share & Industry Analysis, By Component (Optical Fiber, Optical Transceivers, Optical Amplifiers, Optical Switches, Optical Circulators, Optical Sensors, and Others), By Technology (WDM, SONET/SDH, Fiber Channel, and Others), By Data Range (Up to 40 GBPS, 40 to 100 GBPS, and > 100 GBPS) By Vertical (Marine, Space Exploration, Aviation, Defense, Energy & Utilities, and Others) and Regional Forecast, 2025-2032”.

Optical communication system and networking is the process of transmitting information from one location to the other with the help of light signals. The information is first converted into an optical signal by a light source, such as an LED or laser diode and transferred through an optical cable to achieve high-speed data rates over long distances. This optical signal is again converted back into its original form at the destination. Optical communication systems are being extensively used in several areas, such as enterprise networking, data centers, telecom, and aerospace & defense. This factor is expected to have a positive impact on the market’s progress.

The COVID-19 pandemic had a negative impact on the market’s growth as, like many other industries, the optical communications industry also faced several supply chain disruptions. This led to a severe shortage of essential optical components, leading to the postponement of several communication infrastructure projects.

HFCL Received Order from Reliance to Supply Optical Fiber Cables

HFCL, an Indian provider of telecommunication equipment, optic fiber & optic fiber cables, announced that it had obtained an order worth around USD 11.5 million from Reliance Projects and Property Management Services Ltd. Through the contract, HFCL and its subsidiary, HTL Ltd., will supply optical fiber cables to Reliance, which is also among India's leading private telecom operators.

Use of SDN Technologies in Optical Communication Systems to Fuel Market Growth

SDN or Software-Defined Networking is a networking technique that uses software-based controllers or Application Programming Interfaces (APIs) to interact with the core hardware infrastructure and supervise the flow of the data traffic across a network. SDN is majorly used to direct the data movement through optical networks. SDN technologies are being increasingly integrated into optical communication systems as they can enhance the overall performance of optical networks through centralized control. With the help of SDN, network operators can monitor conditions in real-time to make decisions about resource and traffic management. These factors will increase the integration of SDN technologies in optical communication systems.

However, high installation costs can hinder the optical communication systems and networking market growth.

Leading Players to Focus On New Product Launches and Partnerships to Expand Market Presence

Some of the top companies driving the market’s growth are increasing their focus on launching novel optical communication systems and networking technologies that are equipped with smart technologies, such as AI. They are also engaging in partnerships and collaborations to increase their presence in the market and expand their product portfolio.

Notable Industry Development:

• November 2024 – Nokia signed a deal with Deutsche Telekom to install an extensive commercial O-RAN network in Germany. Nokia offered more than 3,000 locations that support Deutsche Telekom’s Open RAN network objectives. The firm focuses on robust, wide-ranging multi-vendor Open RAN network deployment.

List of the Companies Profiled in the Report:

• Huawei Technologies Co. Ltd. (China)
• Corning Incorporated (U.S.)
• Ciena Corporation (U.S.)
• Nokia (Finland)
• Cisco Systems Inc. (U.S.)
• Fujitsu (Japan)
• ADVA Optical Networking SE (Germany)
• NEC Corporation (Japan)
• Infinera Corporation (U.S.)
• Juniper Networks Inc. (U.S.)
• Thales Group (France)
• General Atomics (U.S.)
• Space Photonics Inc (U.S.)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/optical-communication-systems-and-networking-market-106620

Further Report Findings

• Asia Pacific dominated the global optical communication systems and networking market share in 2024 and might maintain its dominance during the forecast period owing to strong growth in cloud computing technologies across the region. This has increased the number of data centers that use optical communication technologies to enhance their operational efficiency.
• North America will also record a significant CAGR in the global market due to the rollout of 5G networks across the region.
• Based on component, the optical transceiver segment held the biggest market share in 2024 as they play a key role in facilitating last-mile and long-haul connectivity of fiber optic networks.

Table of Segmentation