The global synchronous optical network (SONET) market is primarily driven by rapidly growing telecom sector and adoption of 5G technology. SONET or synchronous optical networking is a standardized protocol that allows synchronous data transmissions of digital signals over optical fiber. SONET provides transmission path provisioning, network monitoring and management. It plays a critical role in high speed data transmission over long distances, enabling applications like video conferencing, cloud services and online streaming. SONET systems are widely used by telecom operators to carry different types of data over their own proprietary fiber-optic networks. With rapidly growing 5G deployments by various telecom operators globally to meet data demand, the requirement for high bandwidth networks is increasing exponentially. This is fueling adoption of SONET equipment that support 5G backhauling and fronthauling.
The global synchronous optical network (SONET) Market is estimated to be valued at US$ 6.30 Bn in 2023 and is expected to exhibit a CAGR of 12.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rapid adoption of 5G technology is a major driver of synchronous optical network market. As 5G networks aim to deliver higher speeds and lower latency, they require fiber infrastructure to support exponentially higher data volumes for applications like 4k/8k video streaming, VR/AR, autonomous driving and more. This is fueling investments by telecom operators in SONET equipment that support high speed 5G backhauling. Furthermore, rising demand for high bandwidth fiber networks from enterprise and data center applications is also propelling the SONET market growth. As organizations increasingly rely on cloud computing and web-based applications, there is growing need for networking infrastructure like SONET that ensure seamless connectivity and data transmission. Additionally, ongoing fiberization of mobile networks as well as initiatives like broadband for all by governments worldwide are expanding global fiber infrastructure, thereby boosting synchronous optical network adoption.
Segment Analysis
The global synchronous optical network market can be segmented based on component, technology, end user, and region. Based on component, the hardware segment is dominating the market currently due to rising demand for routers, WDM, and other networking equipment from telecom operators globally.
PEST Analysis
Political: Regulations around optical fiber deployment and international telecommunication standards help the market growth.
Economic: Rising global GDP and investments in digital infrastructure from governments worldwide provide opportunities.
Social: Increasing mobile data usage and demand for high-speed broadband stimulating the demand.
Technological: Advancements in Ethernet, SDN, 400G technology help network operators offer enhanced connectivity.
Key Takeaways
The Synchronous Optical Network Market Trend is expected to witness high growth at a CAGR of 12% during the forecast period of 2023 to 2030. Regionally, Asia Pacific is dominating currently due to rapid investments from China and India to modernize their telecom infrastructure.
Key players operating in the synchronous optical network market are Huawei Technologies Co. Ltd., ZTE Corp., Cisco Systems Inc., ADVA Optical Networking SE, Nokia Corporation, Ciena Corporation, Infinera Corporation, Fujitsu Ltd., ECI Telecom Ltd., Telefonaktiebolaget LM Ericsson, NEC Corporation, Juniper Networks Inc., Coriant GmbH, Huawei Marine Networks Co. Limited, NTT Electronics Corporation, Lumentum Operations LLC, Plaintree Systems Inc., Marben Products, Smartoptics AS, Shenzhen HiSilicon Technologies Co. Ltd.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
