Optical Wavelength Services Market

Global Optical Wavelength Services Market Size (2024 to 2029)

The global optical wavelength services (OWS) market size is predicted to reach USD 4.67 billion in 2024 and USD 7.02 billion by 2029, growing at a CAGR of 8.5% during the forecast period.

Current Scenario of the Global Optical Wavelength Services Market

The advent of the Internet of Things (IoT) and the development of automation trends have exponentially improved data traffic, creating an increasing demand for bandwidth for large, small, and medium enterprises (SMBs) that recognize the need for OWS. Optical Wavelength Service is a point-to-point delivery service based on high-bandwidth optical fiber. Different high bandwidth channels can be transmitted over a single strand of fiber using DWDM (Dense Wavelength Division Multiplexing) technology. Single fiber filaments used by various companies are a cost-effective solution to reduce the cost of implementing and maintaining the split fiber channel. Service providers offer metropolitan wavelength services, national wavelength services, and international wavelength services to businesses based on their data transmission needs. Service providers offer different optical wavelength services, such as high bandwidth, static route, and dedicated bandwidth, as well as protected and unprotected services for optical wavelengths. Optical wavelength services can play a pivotal role in business continuity and disaster recovery, data center interconnection, transmission of high-resolution videos, processing of credit cards, and other financial services.

MARKET TRENDS

OTN offers many advantages over traditional transponder-based WDM networks, including reliability, improved efficiency, and private wavelength-based services. In addition, OTN switches at the fiber junctions facilitate optimal use of the optical spectrum. Networks of telecommunications companies and service providers are rapidly beginning to face the explosion of digital traffic generated by mobile applications, multimedia services, VoIP, social networks, and cloud computing. In addition, there is a growing range of bandwidth-intensive applications. Therefore, the growth of digital traffic will have a positive influence on the interface of the optical transport network. Additionally, the performance improvements offered by 5G have been seen as a critical component of the expansion of the Internet of Things. All-new applications, including augmented reality, virtual reality, and autonomous vehicle management, will need the agility and reliability that 5G promises. In addition, with its software-centric network paradigm, the emerging cloud architecture offers merchants and telecom service providers the opportunity to grow and produce innovative products and services that can contribute to the overall growth of the industry. Global telecommunications industry. These developments will collectively bring increased interest to the mobile data transport network and will have a determined force in the optical network architecture to better meet these requirements.

MARKET DRIVERS

The growing demand for fiber optic communication and the growing demand for high-speed Internet for commercial communications are expected to drive growth in the market for optical wavelength services.

Technological advances in communication standards are expected to drive the development of optical wavelength services in the market. The implementation of optical wavelength services can curb business costs by purchasing a separate communication channel, which is foreseen to offer lucrative growth opportunities for service providers in this industry. The growing use of the Internet by the population is driving the growth of this market, along with technological progress and developments.

MARKET RESTRAINTS

However, the limited availability of incremental bandwidth is holding back growth in this market. Also, the growing demand for virtual connectivity is another important factor limiting the market.

Impact of Covid-19 on the Global Optical Wavelength Services Market

Companies are expanding their geographic presence to gain more market share in the Asia-Pacific region due to the growing impact of COVID-19 on business growth. Businesses are embracing the work-from-home model for employee safety, creating opportunities for providers of data transfer services over optical wavelength channels. Businesses adopt optical wavelength services to provide the best signal quality and the best services for the viewer and customers. To transmit high-quality video conferencing signals, business sectors are adopting optical wavelength services during the COVID-19 period in 2020.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Optical Wavelength Services Market Analysis By Interface

The global optical wavelength services market is divided into three types depending on the interface: Ethernet, OTN, and SONET. Ethernet is expected to gain significant market share during the forecast period due to its balancing function for server connectivity compared to other interfaces. Ethernet offers better connectivity speed, and the next version of Ethernet is Gigabit, which offers ten times more speed than the traditional version.

Global Optical Wavelength Services Market Analysis By Application

The market for optical wavelength services can be segmented, depending on the application, into short-haul, long-haul, and metro. The metro segment is expected to grow at a very high speed due to the growing demand for bandwidth and connectivity between data centers, the growing adoption of consumer 4K, and increased video content on various devices such as telephones, smartphones, PCs, and tablets. Most service providers are turning to an increasing wavelength speed by adopting metro applications.

Global Optical Wavelength Services Market Analysis By Bandwidth

Based on the bandwidth, the global optical wavelength services market is divided into less than 10 Gbps, 40 Gbps, 100 Gbps, and more than 100 Gbps. Similarly.

Global Optical Wavelength Services Market Analysis By Organization Size

 Based on the organization size, the market is bifurcated into small and medium enterprises (SMEs) and large enterprises.

REGIONAL ANALYSIS

North America is expected to dominate the market for optical wavelength services during the forecast period due to the growing demand for high-speed connectivity and communication in the industrial sector. The rising need for end-to-end wavelength services is foreseen to drive business growth in this region.

KEY PLAYERS IN THE OPTICAL WAVELENGTH SERVICES MARKET

1. Zayo Group,

2. Nokia,

3. Verizon Wireless,

4. CenturyLink,

5. AT&T Intellectual Property,

6. Sprint.com,

7. COMCAST,

8. Crown Castle,

9. Windstream Communications,

10. Charter Communications,

11. Colt Technology Services Group Limited,

12. Cox Communications, Inc.,

13. Jaguar Network SAS,

RECENT HAPPENINGS IN THE OPTICAL WAVELENGTH SERVICES MARKET

• In June 2020, Zayo Group Holdings recently published about its four new long-haul optical wavelength routes in the United States that will offer multiple terabits of capacity to customers in different industries. The investment in the four routes, expected to be finalized this year, was made based on strong demand from Zayo customers, who continue to seek physical and vendor diversity, as well as new low-latency routes.

• In January 2019, Zayo collaborated with Oracle to extend their CloudLink solutions. Zoya can now access Oracle Cloud through Oracle Cloud Infrastructure FastConnect, which will allow them to connect to Oracle Cloud anywhere. This will help protect data and information by reducing the risk of the public Internet.

• In October 2017, GTT Communications, Inc. announced that it had acquired Transbeam, a managed data and voice services company. The main objective is to develop your business in managed hybrid networks. They want to develop their businesses in the entertainment, hospitality, and retail sectors.

DETAILED SEGMENTATION OF THE GLOBAL OPTICAL WAVELENGTH SERVICES MARKET INCLUDED IN THIS REPORT

This research report on the global optical wavelength services market has been segmented and sub-segmented based on the interface, application, bandwidth, organization size, and region. 

By Bandwidth                

• Less Than 10 Gbps               
• 40 Gbps    
• 100 Gbps  
• More Than 100 Gbps          

By Interface                    

• Ethernet  
• OTN           
• SONNET        

By Application                

•  Metro       
• Long Haul 
•  Short Haul               

By Organization Size                    

• Large Enterprises 
• SMEs         

By Region

• Asia Pacific

• Europe

• Middle East and Africa

• North America

• Latin America