by The synchronous optical network (SONET) market has emerged as a promising solution to cater to data demands in telecom networks. SONET networks utilize optical fiber transmission lines to transmit telecommunication signals with very high data rates and meet broadband communication needs. SONET supports telecommunication carriers by enabling seamless transmission of voice, data and signals through its digital wrapper structure. It provides flexibility, scalability and bandwidth efficiency through its multiplexing technique to allow future growth.
SONET systems encapsulate any data format into optical signals meeting stringent standards, offering reliability and optimum transmission quality. They deliver high performance communication backbones for telecom networks through their synchronous digital hierarchy framework. Growing reliance on high speed communication infrastructure by enterprises drives the need for robust network transport systems like SONET.
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 key trends:
The synchronous optical network market is witnessing notable trends such as growing preference towards ethernet over SONET technology and adoption of packet-based optical networking solutions such as multiprotocol label switching transport profile (MPLS-TP). Ethernet has emerged as a popular migration path from legacy SONET/SDH networks owing to simplified operations, reduced costs and wider commercial availability of ethernet switches and routers. Meanwhile, MPLS-TP leverages benefits of both SONET and MPLS for transporting packet data over optical infrastructures. It delivers enhanced reliability and quality of transport compared to traditional SONET. Telecom service providers are increasingly transitioning to these advanced networking technologies to handle exponential capacity demands in the future.
Porter’s Analysis
Threat of new entrants: Low – SON market requires huge infrastructure set up and capital investments which act as a barrier for new players.
Bargaining power of buyers: Moderate – Presence of established vendors provides options to buyers however technology expertise and network requirements keeps buyer power in check.
Bargaining power of suppliers: Low – SON market has few technology suppliers and vendors have capability to develop technology in-house as well.
Threat of new substitutes: Low – No direct substitutes exist for SON networks currently.
Competitive rivalry: High – Major players like Huawei, Cisco, Nokia compete intensely on technology leadership, geographic expansion and new service offerings.
Key Takeaways
The global Synchronous Optical Network Market Trend is expected to witness high growth. The market in Asia Pacific region is expected to dominate the market owing to rapid infrastructure development and growing investments from telecom operators in the region. China is forecasted to grow at fastest pace on back of governmental initiatives for technological advancements.
Regional analysis comprises- The North America region is expected grow at a steady pace due to well established telecom infrastructure and growing focus on upgrading networks. Countries like US and Canada are key markets.
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, Cisco and Nokia are leading players based on technology investments and network deployments.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
