The Global Optical Encryption Market size was valued at USD 3.09 Billion in 2020 and is projected to reach USD 5.96 Billion by 2028, growing at a CAGR of 8.54% from 2021 to 2030.

Optical Encryption Market Overview:

Increase in cyber attacks, rise in data safety and security concerns, and increasing investment in smart city projects by various governments are the major factors driving the growth of the optical encryption market. While effective security of a network relies on multiple layers of defense along the path of the network as well as at the core and edge of the network, most organizations focus much of their security on the user and application ends that are essential to protection. In-flight data traveling over the network.

Additionally, industry-wide adoption of cloud computing applications for hosting, processing, and data storage has increased the frequency of sensitive data being transmitted over networks, adding to the costs associated with data loss. Increase in data breaches fuels the growth of the market. For example, in 2019, some of the data leaked from major players in various industries, including Zynga, Facebook, Adobe Creative Cloud, and Capital One Financial Corporation, were reported to have compromised 218 million data records.

Moreover, the numerous benefits provided by optical encryption such as increase in internet penetration, data traffic, cost reduction, latency reduction, high bandwidth efficiency, performance enhancement, and high availability fuel the growth of the optical encryption market. In addition, the increase in in-flight data transmitted over longer distances over radio waves, such as 10G, 40G, and 100G, has driven the adoption of optical encryption to protect high volumes traveling between countries. . For instance, in January 2020, BGN Technology, the former company of Ben-Gurion University of Negev, introduced an all-optical stealth encryption technology that claims to be far more secure and private for network transmission in data centers and cloud computing.

Optical Encryption Market size, estimates and forecasts are provided in terms of sales volume (K units) and revenue (million USD), with historical and forecast data for the period 2017 to 2030, with 2022 being considered as the base year. This report segments the global Optical Encryption Market in detail. Regional market sizes related to products by type, by application, and by player are also delivered. In estimating the size of the market, we took into account the impact of COVID-19 and the Russian-Ukraine war.

Key Market Updates:

• In January 2021, Cisco Systems Inc. and Acacia Communications will merge, strengthening Cisco's 'Internet for the Future' strategy to deliver world-class coherent optical solutions.
• In December 2019, Acacia Communications, a leading supplier of high-speed coherent optical interconnect products, announced the general availability of a pluggable coherent CFP2-DCO module supporting data ranging from 100 Gbps to 200 Gbps transmission. Acacia designed this module to help cloud and communications providers reduce operational and capital costs, increase reach, and accelerate time-to-market for high-capacity solutions.

Major Market Segments Covered in Optical Encryption Market Industry Research:

Market Key Players:
Cisco, Ciena, ADVA, Nokia, ECI Telecom, Ericson, AT&T, China Mobile, Huawei, Microsoft, Google, Facebook, Time Warner Cable, Masergy, Vodafone, Deutsche Telekom, Telefonica, Orange, Acacia Communications, Micro semi, Infinera, Arista network, Broadcom, Juniper nertworks, Century link, Packelight network

By Type:

• Less than 10G
• Greater than 10G and less than 40G
• Greater than 40G and less than 100G
• Greater than 100G

By Application:

• Bank, financial and insurance service
• Government
• Healthcare
• Data centre & cloud
• Energy & Utilities

By Region:

Asia Pacific held the highest market share with 33.1% in 2020. Market growth in this region is mainly driven by major economies such as China, India, Japan and others. According to the Indian Brand Equity Foundation (IBEF), India is the world's second largest telecommunications market with a subscriber base of 1.16 billion and has recorded strong growth over the past decade. In response to user needs, such as the high adoption rate of wireless communication and the development of the Internet of Things (IoT) field, the demand for high data security measures on the Internet is increasing. This increases the demand for end-to-end encryption systems that provide security for confidential data by preventing data exfiltration. Increasing government regulation on data security in these economies fuels the demand for optical encryption systems driving the growth of the optical encryption market. Network coverage such as 5G, telecommunications, consumer electronics, data centers, and smart city initiatives in China, India, Japan, and other developing countries in the region boost the optical encryption market growth significantly.

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Significant Market Dynamics:

Market Drivers

The threat of data leakage and breach has also become a major problem with the increasing technological upgrades in optical networking technology that provide large amounts of data transmission, high bandwidth and fast transmission. To provide better security, end-to-end encryption features have been adopted by various optical networking providers. This increasing demand for cybersecurity is expected to drive the optical encryption market at a global level. Optical encryption uses innovative technology to provide Federal Information Processing Standards (FIPS) certified encryption of users' in-flight data from one endpoint to another. The solution encrypts all users' in-flight data at the optical level, providing maximum protection and throughput, and can be easily implemented to reduce latency. These technological advances tend to drive market growth.

Increasing government initiatives to build smart cities in key regions of the country tend to propel the market for light encryption in IoT and mobile devices. The goal of providing large amounts of data transfer, high bandwidth, fast transfer, and the threat of data leaks and breaches was also a major issue. Along with developing advanced smart cities, Ciena Corporation, a leading US communications networking equipment and software service, introduced WaveLogic Encryption, a programmable 100G/200G optical encryption solution. It builds on years of experience in coherent optics as well as transport layer cryptography to provide an easy-to-implement solution. It is now easier than ever for customers to deploy 10G, 100G or 200G encryption services across their entire infrastructure, eliminating the need for costly separate encryption boxes per application. Own application over the network. These developments tend to drive the growth of the optical encryption market.

Market Challenges

One of the major challenges facing the optical encryption market globally is the lack of network reliability. Despite advances in in-flight data encryption solutions, there are unstable network infrastructures and limited network-oriented access possibilities. As networking policies increase, it becomes very complex for users to manage their networks. This has created major challenges in adoption of optical encryption solutions which is expected to hamper the optical encryption market growth during the forecast period. Moreover, changes in government policies towards data protection in different regions tend to restrict usage and create major challenges to the growth of the optical encryption market.

Optical Encryption Market report scope:

Key Takeaways from this Optical Encryption Market Report

• Estimate Optical Encryption Market potential through analyzing growth rates (CAGR %), Volume (Units) and Value ($M) data given at country level - for product types, applications and by different industry verticals.
• Understand the supply chain in depth on the value growth at each step, in order to optimize value and bring effectiveness in your processes.
• Know the different dynamics affecting the market - challenges, key driving factors and opportunities.
• Get a quick viewpoint on the Optical Encryption Market entropy - M&A's, deals, partnerships, product launches of all key companies for the historical 5 years.
• Estimate the supply-demand gaps, import-export data and regulatory landscape for more than top 20 countries worldwide for the market.
• Get complete insights on your competitor performance - market shares, strategies, financial benchmarking, product benchmarking, SWOT and more.
• Study the sales and distribution channels over key geographies to improve top-line revenues.

Frequently Asked Questions-

What is the CAGR of Optical Encryption Market?

The Optical Encryption Market is growing at a CAGR of 8.54% During Forecast Period.

 What are the key types of Optical Encryption Market?

Less than 10G, Greater than 10G and less than 40G, Greater than 40G and less than 100G, Greater than 100G

What are the key applications of Optical Encryption Market?

Bank, financial and insurance service, Government, Healthcare, Data centre & cloud, Energy & Utilities

Who are the key players in Optical Encryption Market?

Cisco, Ciena, ADVA, Nokia, ECI Telecom, Ericson, AT&T, China Mobile, Huawei, Microsoft, Google, Facebook, Time Warner Cable, Masergy, Vodafone, Deutsche Telekom, Telefonica, Orange, Acacia Communications, Micro semi, Infinera, Arista network, Broadcom, Juniper nertworks, Century link, Packelight network