Summary

The Global Optical Wavelength Services Market was valued at USD 3.42 billion in 2020, and it is projected to be worth USD 5.84 billion by 2026, registering a CAGR of 9.68% during the period of 2021-2026. The companies adopt the optical wavelengths services to better signal quality and services to the viewer and customers. For transmitting the video conferencing signal with high quality, the commercial sectors adopt the optical wavelengths services during COVID-19 in 2020.

- The evolution of the Internet of Things (IoT) and evolving automation trends have exponentially heightened data traffic, thereby creating increased bandwidth demands for large companies and small- and medium-sized enterprises (SMEs), recognizing the need for OWS.
- According to Forbes, the total installed base of the Internet of Things (IoT) connected devices is expected to amount to USD 75.44 billion globally by 2025. The next-generation mobile connection technology 5G, with a predicted number of 1.3 billion subscriptions by 2023, may significantly boost IoT applications in everyday life.
- According to Cisco Systems Inc., on average, a smartphone is expected to generate 11 GB data traffic per month by 2022, which may be more than a four and a half-fold jump over the 2017 average of 2 GB data per month. The increase in mobile traffic is anticipated to create an extensive opportunity for the optical transport network market.
- Besides the burgeoning need for high-speed internet and fiber optics, communication has become the spine, enhancing OWS's demand. Progressions in technology with concerns to communication standards are expected to create opportunities for OWS vendors. For instance, in 2020, Comcast Corporation’s total customer relationships increased by 1.6 million. The total number of high-speed customers increased by 2 million.
- Netflix alone added 15 million subscribers during the early months of the COVID-19 crisis. Additionally, digital lessons delivered by teachers created a surge in demand for bandwidth. Zoom's prominent video apps surged from 10 million users to 200 million in a few months.

Key Market Trends

Optical Transport Network (OTN) Interface to Record the Highest Growth Rate

- OTN gives numerous benefits over traditional WDM transponder-based networks, including reliability, improved efficiency, and protected wavelength-based private services. Furthermore, OTN switches at fiber junctions facilitate the optimal use of the optical spectrum.
- The Open Transport Network (OTN) is essential in transforming the network into an open and programmable platform, allowing transportation to become as crucial as computation and storage in intelligent data center networking. Today, a significant amount of system traffic is packet-based, generated by various services and applications in unexpected traffic patterns, with widely varied and increasingly rigorous bandwidth demands.
- The telecommunications business and service provider networks are swiftly starting to deal with the burst of digital traffic driven by mobile applications, multimedia services, VoIP, social media, and cloud computing. Also, there is a burgeoning array of bandwidth-hungry applications. Therefore, the growth of digital traffic will have a positive influence on the optical transport network interface.
- Moreover, the performance enhancements proposed by 5G have been deemed an essential element in the expansion of the Internet of Things. Entirely new applications, including augmented reality, virtual reality, and autonomous vehicle management, will need the agility and reliability promised by 5G.
- Furthermore, with its software-centric network paradigm, the emerging cloud architecture offers possibilities for telecom merchants and service providers to grow and produce innovative products and services that can add to the overall growth of the global telecom industry. These developments will collectively put greater interest in the mobile data transport network and have a resolute force on the optical network architecture to better accommodate these requirements.

Asia Pacific to Hold Dominant Share of the Market

- The Asia Pacific region upgrades the communication technology infrastructure at breakneck speed as a part of digital transformation. Many IT businesses in the area and rising demand for end-to-end wavelength services are very high, driving this sector's growth. The expanding LAN & WAN connectivity, high usage in financial data transfer, and offset backup data encourage the area's growth during the forecasted period.
- Many developing country’s governments are taking initiatives to encourage the development of the communication infrastructure in their respective countries, driving the growth of the optical wavelength service market. Countries like India, China, and Japan are prominent countries in the APAC region's optical wavelength service development field.
- Governments of several emerging nations are also taking initiatives to promote or expedite the development of communication infrastructure in these countries. Asia-Pacific is growing as a manufacturing center for most firms due to low-cost labor and a vast penetration rate of the Industry 4.0 movement. In Asian nations, governments proactively support the development of new businesses. For instance, “Made in China 2025” is an initiative to comprehensively promote the Chinese industry to facilitate the realization of Industry 4.0.
- According to the Economist Intelligence Unit (EIU), people living in Asia actively support technology. It has entered all perspectives of their daily activities far more intensely than in many other parts of the world. Such penetration will encourage the telecom providers to give more powerful network connection speeds, which, in turn, will promote the Optical Wavelength Services to grow.
- Infinera's fourth-generation ICE4 optical engine is being waved around across Telstra's Asia Pacific subsea infrastructure as part of an ongoing relationship, enhancing the network's capacity, agility, and dependability.

Competitive Landscape

The Optical Wavelength Services Market is moderately competitive. The major players have used various strategies such as expansions, agreements, joint ventures, new product launches, partnerships, acquisitions, and others to expand their footprints in this market. A few of the principal competitors currently operating in the optical wavelength services market are Zayo Group, Nokia, Century Link, Verizon Wireless, Century Link, Windstream Communications, Sprint.com, and Charter Communications.

- May 2020 - WarnerMedia has finalized its acquisition of Ole Communications’ minority stakes in both HBO Ole Partners and HBO BrasilPartners, the joint ventures between WarnerMediaand Ole Communications, and now owns 100% of all HBO, Cinemax, and HBO Go services in Spanish-speaking Latin America and the Caribbean, as well as in Brazil. This would allow us to fully realize the potential of a combined WarnerMedia in Latin America, creating more value for fans, business partners, and content creators.
- June 2020 - Zayo Group Holdings announced four new long-haul optical wavelength routes in the United States that will provide multiple terabits of capacity for customers in diverse sectors. Investment in the four routes, all scheduled to be completed this year, was made based on strong demand from Zayo’s customers, who continue to look for physical and vendor diversity and new, lower latency pathways.
- October 2020 - GTT Communications Inc. announced that women’s fashion brand KOOKAÏ deployed GTT-managed SD-WAN and connectivity services for its 148 office and retail sites across France and Spain.

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Table of Contents

1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET INSIGHT
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of Assessment of COVID-19 on the Market

5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Demand for the Internet
5.1.2 Accelerated Bandwidth-intensive Applications
5.2 Market Restraints
5.2.1 Limited Availability of Incremental Bandwidth
5.2.2 Increasing Demand for Virtual Connectivity

6 MARKET SEGMENTATION
6.1 By Bandwidth
6.1.1 Less than 10 Gbps
6.1.2 40 Gbps
6.1.3 100 Gbps
6.1.4 More Than 100 Gbps
6.2 Fiber Channel Interface
6.2.1 OTN
6.2.2 Sonet
6.2.3 Ethernet
6.3 Organization Size
6.3.1 Small and Medium-Sized Enterprises
6.3.2 Large Enterprises
6.4 Geography
6.4.1 North America
6.4.2 Europe
6.4.3 Asia Pacific
6.4.4 Rest of the World

7 COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Nokia Corporation
7.1.2 Zayo Group Holdings, Inc.
7.1.3 Verizon Communications Inc.
7.1.4 GTT Communications, Inc.
7.1.5 AT&T Inc.
7.1.6 Lumen Technologies Inc.
7.1.7 T-Mobile US Inc.
7.1.8 Crown Castle Inc.
7.1.9 Comcast Corporation
7.1.10 Charter Communications
7.1.11 Windstream Holdings, Inc.
7.1.12 Colt Technology Services Group Limited
7.1.13 Cox Communications
7.1.14 Jaguar Network SAS
7.1.15 CarrierBid Communications

8 INVESTMENT ANALYSIS

9 FUTURE OF THE MARKET