Global Optical Encryption Market Trends Analysis & Forecast 2019-2028
$2,800.00 – $5,440.00
Increasing internet penetration surges the demand for optical encryption technologies
The global optical encryption market is estimated to witness a strong growth rate of around 8.2% over the period of 2019–2028. The market is expected to grow at a significant pace owing to the increasing internet penetration, rising focus on cyber security, and growing smart city projects across the globe. The increasing internet penetration has increased the concerns associated with data traffic and data security, which in turn, is expected to drive the adoption of optical encryption technology across the globe. Optical encryption is an emerging medium to protect data with high capacity, as it crosses cities, countries, and borders. As a means of securing in-flight data, optical encryption has remarkable benefits compared to conventional encryption solutions that operate at higher layers of the network. As a result, optical encryption techniques will be increasingly adopted to provide an exceptionally secure connection to the infrastructure by protecting data from theft.
IPsec or Layer 3 accounted for the largest share in the global market
Based on the encryption layer, the global optical encryption market is segmented into OTN or layer 1, MACsec or layer 2, and IPsec or layer 3. IPsec or Layer 3 is dominating the global market in 2022 and is further estimated to continue its dominating nature over the forecast period. Internet-based virtual private networks (VPNs) extensively use and accept layer 3 encryption as it provides seamless security to application and transport layers and can be applied to all-sized networks such as local area networks (LAN), wide area networks (WAN), and others. Additionally, there are several large-scale IPsec deployments in operation in current years across a variety of enterprise and government networks. Whereas, OTN or layer 1 is expected to witness the highest CAGR during the forecast period on account of the advantages offered by it including reduced cost, lower latency, high bandwidth efficiency, improved performance, and high availability.
The Asia Pacific is expected to gain the fastest momentum globally
The Asia Pacific is expected to observe the fastest growth rate over the forecast period due to extent of networks such as telecom (including 5G), consumer electronics, data centers, and smart city initiatives in China, India, Malaysia, and Thailand among others. Increasing internet penetration also remains one of the factors that is augmenting the regional growth of the optical encryption market. Internet penetration in emerging economies has been rising owing to the cohesive government initiatives to promote digitalization. For instance, in 2015, the Indian government launched the Digital India campaign to promote digitalization, increase internet connectivity and improve online infrastructure within the country. This, in turn, is supporting the rising number of internet users in the country. As per the International Telecommunication Union (ITU), the percentage of the population using the internet in the country has increased from 20.08% in 2018 to 43.00% in 2020, representing an increase of over 140%.
Market Structure and Competition Landscape
The global optical encryption market consists of various players operating in the market. Some of the prominent players that contribute significantly to the market growth include Nokia Corp., Cisco Systems Inc., Huawei Technologies Co. Ltd., Broadcom Inc., Juniper Networks Inc., Ciena Corp., ECI Telecom Ltd., Microsemi Corp., Arista Networks Inc., Crown Castle International Corp., ADVA Optical Networking SE, Microchip Technology Inc., and Thales Group, among others. These players adopt various strategies in order to reinforce their market share and gain a competitive edge over other competitors in the market. Mergers & acquisitions, partnerships and collaborations, and product launches are some of the strategies followed by industry players. Some of the key developments in the global optical encryption market include,
- In March 2021, Cisco Systems Inc. announced the acquisition of Acacia Communications Inc., a Massachusetts-based company that designs, manufactures, and sells a complete portfolio of high-speed optical interconnect technologies addressing a range of applications across datacenter, metro, regional, long-haul, and undersea networks. The acquisition has strengthened Cisco’s routing and optical networking portfolio.
- In April 2020, Tasmanian Network Pty Ltd. selected Ciena’s Wavelogic Ai coherent optical solution. This was done to address rising bandwidth requirements driven by IoT, 5G, and data center services to cater to its end users with mission-critical tasks. Wavelogic Ai is a coherent optical solution that provides Tasmanian Networks’ with 42-24 enhanced capacity and efficiency in the network.
Key Market Segmentation
RationalStat has segmented the global optical encryption market on the basis of encryption layer, data rate, end-user, and region.
- By Encryption Layer
- OTN or Layer 1
- MACsec or Layer 2
- IPsec or Layer 3
- By Data Rate
- Less than 10 G
- 10 G to 40 G
- 40 G to 100 G
- More than 100 G
- By End-User
- BFSI
- IT & Telecom
- Retail & E-Commerce
- Data Center & Cloud
- Government & Defense
- Healthcare
- Others (Manufacturing, Energy & Utilities, Education, etc.)
- By Region
- North America
- US
- Canada
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Western Europe
- Germany
- UK
- France
- Spain
- Italy
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- Rest of Eastern Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- South Africa
- Turkey
- Rest of the Middle East & Africa
- North America
Research Methodology
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
Secondary Sources
- Annual reports, company filings, investor presentations, product catalogs, and company documents
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for optical encryption providers, investment firms, government organizations, manufacturing firms, healthcare facilities, educational organizations, regulatory agencies, research organizations, and market research firms, among others. The report provides an in-depth analysis of market size, consumption pattern, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The Global Optical Encryption market is expected to grow at a CAGR of over 8.2% during the forecast period 2022-2028.
North America is dominating the Global Optical Encryption market in 2021.
The Global Optical Encryption market is expected to reach around US$ 5.5 billion by 2026.
Rising focus on cyber cities and smart cities are the key drivers in the Global Optical Encryption market.
Major companies operating in the Global Optical Encryption market include Nokia Corp., Cisco Systems Inc., Huawei Technologies Co. Ltd., Broadcom Inc., Juniper Networks Inc., Ciena Corp., ECI Telecom Ltd, etc.
| REGION | Global |
|---|---|
| RELEASE YEAR | 2022 |
| RESEARCH CODE | RST-SAR-008 |
| ADDITIONAL FEATURE | 24×7 Post sales support and 15% free customization |
| User License | Single User/Team License, Corporate License |
Table of Contents
1. Market Introduction
1.1. Scope of Study
1.2. Problem Statement
1.3. Market Segmentation
2. Assumptions and Acronyms
3. Executive Summary
3.1. Global Market in 2022
3.2. Analyst Insights & Recommendations
3.3. Growth Opportunities and Key Strategies
3.4. Supply-side and Demand-side Trends
4. Research Methodology
5. Analysis of COVID-19 Impact and Road Ahead
6. Market Indicators and Background
6.1. Macro-Economic Factors
6.2. Forecasting Factors
Robust assessment of various factors including industrial performance, public and private expenditure, economic conditions, among others
6.3. Supply Chain & Value Chain Analysis
6.3.1. Optical Encryption Providers
6.3.2. Key End-Users
6.4. Industry SWOT Analysis
6.5. PESTLE Analysis
6.6. Porter’s Five Forces Analysis
7. Rules & Regulations
8. Global and Regional Market Dynamics
8.1. Drivers
8.2. Restraints
8.3. Trends
8.4. Opportunities
9. Global Optical Encryption Market: Key Investment Analysis
9.1. By Leading Optical Encryption Providers
9.2. By Region
9.3. By End-User
9.4. M&A Activities
Robust assessment of major investments made by various industry players along with key end-use sectors, and key regions
10. Segmental Analysis
10.1. Global Optical Encryption Market by Encryption Layer
10.1.1. Segment Overview
10.1.1.1. OTN or Layer 1
10.1.1.2. MACsec or Layer 2
10.1.1.3. IPsec or Layer 3
10.2. Global Optical Encryption Market by Data Rate
10.2.1. Segment Overview
10.2.1.1. Less than 10 G
10.2.1.2. 10 G to 40 G
10.2.1.3. 40 G to 100 G
10.2.1.4. More than 100 G
10.3. Global Optical Encryption Market by End User
10.3.1. Segment Overview
10.3.1.1. BFSI
10.3.1.2. IT & Telecom
10.3.1.3. Retail & E-Commerce
10.3.1.4. Data Center & Cloud
10.3.1.5. Government & Defense
10.3.1.6. Healthcare
10.3.1.7. Others (Manufacturing, Energy & Utilities, Education, etc.)
10.4. Global Optical Encryption Market by Region
10.4.1. North America
10.4.2. Latin America
10.4.3. Western Europe
10.4.4. Eastern Europe
10.4.5. Asia Pacific
10.4.6. Middle East & Africa
11. Regional Analysis
11.1. North America Optical Encryption Market Analysis and Forecast 2019-2028
11.1.1. Regional Market Overview and Key Takeaways
11.1.2. North America Optical Encryption Market by Encryption Layer
11.1.3. North America Optical Encryption Market by Data Rate
11.1.4. North America Optical Encryption Market by End User
11.1.5. North America Optical Encryption Market by Country
11.1.5.1. US
11.2. Latin America Optical Encryption Market Analysis and Forecast 2019-2028
11.2.1. Regional Market Overview and Key Takeaways
11.2.2. Latin America Optical Encryption Market by Encryption Layer
11.2.3. Latin America Optical Encryption Market by Data Rate
11.2.4. Latin America Optical Encryption Market by End User
11.2.5. Latin America Optical Encryption Market by Country
11.2.5.1. Brazil
11.2.5.2. Mexico
11.2.5.3. Rest of Latin America
11.3. Western Europe Optical Encryption Market Analysis and Forecast 2019-2028
11.3.1. Regional Market Overview and Key Takeaways
11.3.2. Western Europe Optical Encryption Market by Encryption Layer
11.3.3. Western Europe Optical Encryption Market by Data Rate
11.3.4. Western Europe Optical Encryption Market by End User
11.3.5. Western Europe Optical Encryption Market by Country
11.3.5.1. Germany
11.3.5.2. UK
11.3.5.3. France
11.3.5.4. Spain
11.3.5.5. Italy
11.3.5.6. Benelux
11.3.5.7. Nordic
11.3.5.8. Rest of Western Europe
11.4. Eastern Europe Optical Encryption Market Analysis and Forecast 2019-2028
11.4.1. Regional Market Overview and Key Takeaways
11.4.2. Eastern Europe Optical Encryption Market by Encryption Layer
11.4.3. Eastern Europe Optical Encryption Market by Data Rate
11.4.4. Eastern Europe Optical Encryption Market by End User
11.4.5. Eastern Europe Optical Encryption Market by Country
11.4.5.1. Russia
11.4.5.2. Poland
11.4.5.3. Rest of Eastern Europe
11.5. Asia Pacific Optical Encryption Market Analysis and Forecast 2019-2028
11.5.1. Regional Market Overview and Key Takeaways
11.5.2. Asia Pacific Optical Encryption Market by Encryption Layer
11.5.3. Asia Pacific Optical Encryption Market by Data Rate
11.5.4. Asia Pacific Optical Encryption Market by End User
11.5.5. Asia Pacific Optical Encryption Market by Country
11.5.5.1. China
11.5.5.2. Japan
11.5.5.3. India
11.5.5.4. South Korea
11.5.5.5. Australia
11.5.5.6. ASEAN
11.5.5.7. Rest of Asia-Pacific
11.6. Middle East & Africa Optical Encryption Market Analysis and Forecast 2019-2028
11.6.1. Regional Market Overview and Key Takeaways
11.6.2. Middle East & Africa Optical Encryption Market by Encryption Layer
11.6.3. Middle East & Africa Optical Encryption Market by Data Rate
11.6.4. Middle East & Africa Optical Encryption Market by End User
11.6.5. Middle East & Africa Optical Encryption by Country
11.6.5.1. GCC
11.6.5.2. South Africa
11.6.5.3. Turkey
11.6.5.4. Rest of the Middle East & Africa
12. Competitive Landscape
12.1. Competition Dashboard
12.1.1. Global and Regional Market Share Analysis
12.1.2. Market Structure
12.2. Competitive Benchmarking
12.3. Key Strategy Analysis
12.4. Company Profiles
12.4.1. Nokia Corp.
12.4.1.1. Company Overview
12.4.1.2. Product/Service Offerings
12.4.1.3. Key Financials
12.4.1.4. Recent Developments
12.4.2. Cisco Systems, Inc.
12.4.2.1. Company Overview
12.4.2.2. Product/Service Offerings
12.4.2.3. Financials
12.4.2.4. Recent Developments
12.4.3. Huawei Technologies Co., Ltd.
12.4.3.1. Company Overview
12.4.3.2. Product/Service Offerings
12.4.3.3. Financials
12.4.3.4. Recent Developments
12.4.4. Broadcom Inc.
12.4.4.1. Company Overview
12.4.4.2. Product/Service Offerings
12.4.4.3. Financials
12.4.4.4. Recent Developments
12.4.5. Juniper Networks Inc.
12.4.5.1. Company Overview
12.4.5.2. Product/Service Offerings
12.4.5.3. Financials
12.4.5.4. Recent Developments
12.4.6. Ciena Corp.
12.4.6.1. Company Overview
12.4.6.2. Product/Service Offerings
12.4.6.3. Financials
12.4.6.4. Recent Developments
12.4.7. ECI Telecom Ltd.
12.4.7.1. Company Overview
12.4.7.2. Product/Service Offerings
12.4.7.3. Financials
12.4.7.4. Recent Developments
12.4.8. Microsemi Corp.
12.4.8.1. Company Overview
12.4.8.2. Product/Service Offerings
12.4.8.3. Financials
12.4.8.4. Recent Developments
12.4.9. Arista Networks, Inc.
12.4.9.1. Company Overview
12.4.9.2. Product/Service Offerings
12.4.9.3. Financials
12.4.9.4. Recent Developments
12.4.10. Crown Castle International Corp.
12.4.10.1. Company Overview
12.4.10.2. Product/Service Offerings
12.4.10.3. Financials
12.4.10.4. Recent Developments
12.4.11. ADVA Optical Networking SE
12.4.11.1. Company Overview
12.4.11.2. Product/Service Offerings
12.4.11.3. Financials
12.4.11.4. Recent Developments
12.4.12. Microchip Technology Inc.
12.4.12.1. Company Overview
12.4.12.2. Product/Service Offerings
12.4.12.3. Financials
12.4.12.4. Recent Developments
12.4.13. Thales Group
12.4.13.1. Company Overview
12.4.13.2. Product/Service Offerings
12.4.13.3. Financials
12.4.13.4. Recent Developments
13. Disclaimer
List of Figures/Tables
List of Figures
Figure 01: Global Optical Encryption Market Value Analysis (US$ Mn), 2019-2021
Figure 02: Global Optical Encryption Market Size (US$ Mn) & Y-o-Y Growth (%) Analysis, 2022–2028
Figure 03: Global Optical Encryption Market Size and Market Share Analysis (%) by Encryption Layer, 2022 & 2028
Figure 04: Global Optical Encryption Market Y-o-Y Analysis (%) by Encryption Layer, 2022-2028
Figure 05: Global Optical Encryption Market Size and Market Share Analysis (%) by Data Rate, 2022 & 2028
Figure 06: Global Optical Encryption Market Y-o-Y Analysis (%) by Data Rate, 2022-2028
Figure 07: Global Optical Encryption Market Size and Market Share Analysis (%) by End-User, 2022 & 2028
Figure 08: Global Optical Encryption Market Y-o-Y Analysis (%) by End-User, 2022-2028
Figure 09: Global Optical Encryption Market Size and Market Share Analysis (%) by Region, 2022 & 2028
Figure 10: Global Optical Encryption Market Y-o-Y Growth (%) by Region, 2022–2028
Figure 11: North America Optical Encryption Market Size and Market Share Analysis (%) by Encryption Layer, 2022 & 2028
Figure 12: North America Optical Encryption Market Size and Market Share Analysis (%) by Data Rate, 2022 & 2028
Figure 13: North America Optical Encryption Market Size and Market Share Analysis (%) by End-User, 2022 & 2028
Figure 14: North America Optical Encryption Market Size and Market Share Analysis (%) by Country, 2022 & 2028
Figure 15: Latin America Optical Encryption Market Size and Market Share Analysis (%) by Encryption Layer, 2022 & 2028
Figure 16: Latin America Optical Encryption Market Size and Market Share Analysis (%) by Data Rate, 2022 & 2028
Figure 17: Latin America Optical Encryption Market Size and Market Share Analysis (%) by End-User, 2022 & 2028
Figure 18: Latin America Optical Encryption Market Size and Market Share Analysis (%) by Country, 2022 & 2028
Figure 19: Western Europe Optical Encryption Market Size and Market Share Analysis (%) by Encryption Layer, 2022 & 2028
Figure 20: Western Europe Optical Encryption Market Size and Market Share Analysis (%) by Data Rate, 2022 & 2028
Figure 21: Western Europe Optical Encryption Market Size and Market Share Analysis (%) by End-User, 2022 & 2028
Figure 22: Western Europe Optical Encryption Market Size and Market Share Analysis (%) by Country, 2022 & 2028
Figure 23: Eastern Europe Optical Encryption Market Size and Market Share Analysis (%) by Encryption Layer, 2022 & 2028
Figure 24: Eastern Europe Optical Encryption Market Size and Market Share Analysis (%) by Data Rate, 2022 & 2028
Figure 25: Eastern Europe Optical Encryption Market Size and Market Share Analysis (%) by End-User, 2022 & 2028
Figure 26: Eastern Europe Optical Encryption Market Size and Market Share Analysis (%) by Country, 2022 & 2028
Figure 27: Asia Pacific Optical Encryption Market Size and Market Share Analysis (%) by Encryption Layer, 2022 & 2028
Figure 28: Asia Pacific Optical Encryption Market Size and Market Share Analysis (%) by Data Rate, 2022 & 2028
Figure 29: Asia Pacific Optical Encryption Market Size and Market Share Analysis (%) by End-User, 2022 & 2028
Figure 30: Asia Pacific Optical Encryption Market Size and Market Share Analysis (%) by Country, 2022 & 2028
Figure 31: Middle East & Africa Optical Encryption Market Size and Market Share Analysis (%) by Encryption Layer, 2022 & 2028
Figure 32: Middle East & Africa Optical Encryption Market Size and Market Share Analysis (%) by Data Rate, 2022 & 2028
Figure 33: Middle East & Africa Optical Encryption Market Size and Market Share Analysis (%) by End-User, 2022 & 2028
Figure 34: Middle East & Africa Optical Encryption Market Size and Market Share Analysis (%) by Country, 2022 & 2028
List of Tables
Table 1: Global Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Encryption Layer
Table 2: Global Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Data Rate
Table 3: Global Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by End-User
Table 4: Global Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Region
Table 5: North America Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Encryption Layer
Table 6: North America Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Data Rate
Table 7: North America Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by End-User
Table 8: North America Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Country
Table 9: Latin America Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Encryption Layer
Table 10: Latin America Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Data Rate
Table 11: Latin America Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by End-User
Table 12: Latin America Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Country
Table 13: Western Europe Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Encryption Layer
Table 14: Western Europe Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Data Rate
Table 15: Western Europe Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by End-User
Table 16: Western Europe Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Country
Table 17: Eastern Europe Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Encryption Layer
Table 18: Eastern Europe Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Data Rate
Table 19: Eastern Europe Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by End-User
Table 20: Eastern Europe Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Country
Table 21: Asia Pacific Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Encryption Layer
Table 22: Asia Pacific Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Data Rate
Table 23: Asia Pacific Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by End-User
Table 24: Asia Pacific Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Country
Table 25: Middle East & Africa Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Encryption Layer
Table 26: Middle East & Africa Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Data Rate
Table 27: Middle East & Africa Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by End-User
Table 28: Middle East & Africa Optical Encryption Market Value (US$ Mn) Analysis and Forecast 2019-2028, by Country
Every Sample Includes
Research Methodology
Complete Table of Contents, List of Charts and Tables
Exclusive Facts & Illustrations
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