SYNCHRONOUS OPTICAL NETWORK MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

One of the key challenges faced by the synchronous optical network market is the high initial investment required for setting up SONET infrastructure. Establishing SONET networks entails significant capital expenditure on hardware equipment such as multiplexers and switches. Periodic upgradation of technology also pushes the investment costs higher. Further, maintenance and operation of such networks demands specialized skilled professionals which increases the operational expenses. The market is also witnessing increased competition from cheaper alternative optical networking technologies such as Optical Transport Network (OTN) which can hinder the growth potential of market.

Market Opportunities: Increasing deployments in smart cities

Development of smart cities globally provides an excellent opportunity for synchronous optical network (SONET) adoption. Smart cities utilize digital connectivity for automating and integrating various urban systems. Synchronous optical network (SONET) can provide the high-capacity fiber optic backbone required for enabling seamless connectivity across smart city infrastructure. According to projections, the global smart city market will grow from US$ 410 billion in 2020 to over US$ 820 billion by 2025 at a CAGR of 14.7%. The rapid proliferation of smart cities will boost demand for synchronous optical network (SONET) deployments.