Synchronous Optical Network Market Is Estimated To Witness High Growth Owing To Demand For High Speed Data Communication

Synchronous Optical Network Market

Synchronous optical network (SONET) is a standard telecommunications protocol that allows synchronous digital hierarchy (SDH) signals to interconnect with asynchronous transfer mode (ATM) and PDH networks. SONET offers numerous advantages such as greater reliability, higher transmission speed, and lower operating costs than other protocols like asynchronous transfer mode (ATM). It supports data, voice and video applications through dense wavelength division multiplexing (DWDM) and plays a critical role in broadband, enterprise and mobile backhaul applications.

The global Synchronous Optical Network 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 Opportunity:
The growth of the SONET market is driven by the increasing demand for high-speed data communication. SONET offers greater transmission bandwidth which has increased its adoption for applications requiring high-speed data transfer such as video conferencing, online streaming, file sharing etc. It allows transmission of large amounts of data at faster speeds compared to other legacy protocols. Furthermore, the deployment of 5G networks will also contribute to the growth of the SONET market. 5G infrastructure requires high-speed backhaul network capable of handling massive data traffic. SONET is well-suited to fulfill the bandwidth and low latency requirements of 5G backhaul. The rising adoption of SDN and virtualization technologies will further boost the demand for SONET systems.

Porter's Analysis

Threat of new entrants: The synchronous optical network equipment market requires large capital investment for R&D and infrastructure development which acts as a barrier for new entrants.

 Bargaining power of buyers: Large network operators have significant bargaining power over equipment vendors due to their high purchasing power and ability to demand better pricing and terms.

 Bargaining power of suppliers: Major suppliers like Huawei, Cisco, and ADVA have established strong global presence and hold major market share giving them bargaining power over buyers.

Threat of new substitutes: There is no direct substitute for SDH/SONET networks currently used for communication backbone.

Competitive rivalry: Presence of numerous global and regional players intensify the competition. Players focus on developing new technological advancements to gain competitive edge.

SWOT Analysis

Strengths: SONET networks offer high scalability, flexibility, and proven reliability ideal for data-intensive applications.

Weaknesses: SONET networks have high initial installation and upgrade costs. Fragmented standards across regions.

Opportunities: Growing need for high-capacity networks due to 5G deployment and cloud applications.

Threats: Migration toward packet-based transport technology like MPLS may reduce SONET adoption rate. Intense competition from substitutes may squeeze profit margins.

Key Takeaways

The global Synchronous Optical Network Market Trend is expected to witness high growth during the forecast period. North America dominates currently due to high telecom infrastructure spending and early adoption of advanced networks. However, Asia Pacific is likely to witness fastest growth fueled by rapid 5G rollout, increasing mobile data traffic, and ongoing fiber network expansion projects across countries like China and India.

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. Huawei and ZTE capture a major share due to their strong R&D and product portfolio. However, other players are focusing on partnerships and developing differentiated offerings to increase market presence.

For more details on the report,  Read- https://www.dailyprbulletin.com/flourished-by-rapid-adoption-of-5g-technology-trend

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