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

Synchronous Optical Network Market Size and Trends

Global synchronous optical network market is estimated to be valued at USD 6.74 billion in 2024 and is expected to reach USD 12.04 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 8.6% from 2024 to 2031. Synchronous optical networking is increasingly being adopted by telecommunication companies and large enterprises to cater to the exponentially growing demand for bandwidth and need for high-speed data transmission.

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The market is expected to witness significant growth over the forecast period. Traditional optical networking technologies are unable to meet current and future network requirements in terms of speed and capacity. Synchronous optical networking provides higher bandwidth, low latency and packet-level synchronization required by many modern networking applications such as 5G, artificial intelligence, and Internet of Things. The growing requirement for such applications boosts demand for synchronous optical networks globally.

Rising Adoption of Cloud-Based Services

Global synchronous optical network market is witnessing substantial growth due to rising adoption of cloud-based services across industries globally. Cloud computing has revolutionized how information technology services are delivered and being leveraged by organizations of all sizes. Public cloud services provide huge scalability and flexibility to businesses at competitive rates. This has increased the reliance of companies on cloud infrastructure and apps. As more enterprise workloads and digital services shift to the cloud, there is a growing need for high-speed networks that can support this migration and allow seamless connectivity between data centers, cloud platforms, and end users. Synchronous optical networks with their ability to provide symmetrical bandwidth and low latency communications has become increasingly important. These networks help data centers and cloud providers to achieve higher performance and connectivity required for mission critical cloud applications. These allow cloud service providers to scale up their infrastructure quickly and efficiently in different geographical locations. This boosts adoption of SON solutions within large cloud platforms.

For instance, in April 2021, Shanghai became the first city worldwide to deploy fully-optical network city-wide. Anywhere in the urban area, user can experience a stable connection with a network latency of only 1 millisecond.

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Another key driver propelling the synchronous optical network market growth is the rapid deployment of 5G technologies worldwide. 5G promises to deliver significantly enhanced mobile broadband services with ultra-low latency and massive connectivity. However, it also places immense pressure on the backhaul infrastructure that connects the core network with 5G radio sites. Synchronous networks have emerged as an effective solution to meet the exponential increase in bandwidth requirements of 5G. Their symmetrical capabilities enable seamless transmission of bandwidth-intensive data between core network centers and cell sites. These help optimize 5G backhaul networks and allow telcos to upgrade core infrastructure without disruptions. SON solutions also support high-performance fronthaul applications in 5G networks, facilitating functions like RoF and C-RAN. Increasing 5G deployments by telecom operators to fulfil government mandates and meet consumer demand for faster speeds boosts long-term investment in SON. The technology enables telcos to upgrade networks and roll-out new-age services with reliability and ease.

In February 2023, GSMA Intelligence, the definitive source of data and analysis for the mobile industry and beyond, covering all operators across the globe, released updated data indicating that 5G connections are expected to double in 2024. This growth is accelerated by advancements in technology and the initiation of 5G network installations in over 30 nations in 2023. Out of the networks set to be launched in 2023 , approximately 15 are anticipated to be 5G standalone networks.