Elastic Optical Network Global Market Report 2025

The elastic optical network market size has grown rapidly in recent years. It will grow from $9.05 billion in 2024 to $10.53 billion in 2025 at a compound annual growth rate (CAGR) of 16.4%. The growth during the historic period is driven by rising demand for high-speed internet, expansion of telecommunication infrastructure, increased adoption of cloud computing, growth in digital healthcare services, and higher investments in fiber optics.

The elastic optical network market size is expected to see rapid growth in the next few years. It will grow to $19.12 billion in 2029 at a compound annual growth rate (CAGR) of 16.1%. The growth in the forecast period is supported by expanding 5G network deployments, rising demand for seamless connectivity, greater adoption of cloud services, growth in bandwidth-intensive applications, and increasing regulatory support. Key trends in the forecast period include advancements in elastic optical devices, integration of software-defined networking, innovations in bandwidth-variable transceivers, development of scalable network architectures, and progress in spectrum slicing techniques.

The growing demand for high-speed internet access is expected to drive the growth of the elastic optical network market. High-speed internet access refers to broadband connections capable of transmitting data at very fast speeds, supporting activities such as streaming, video conferencing, and cloud computing. This demand is increasing primarily due to rising digital connectivity from the expanding number of online users and data-intensive applications. Elastic optical networks address this need by offering scalable, flexible, and high-capacity fiber-optic infrastructure that can dynamically allocate bandwidth as user requirements change. For example, in December 2024, according to the Office of Communications (Ofcom), a UK-based communications regulator, 69% of UK households (around 20.7 million homes) had full-fiber broadband, up from 57% (17.1 million homes) in September 2023. The rising demand for high-speed internet access is therefore driving the growth of the elastic optical network market.

Key companies in the elastic optical network market are focusing on technological innovations such as high-capacity coherent optical transceiver engines to improve network flexibility, maximize spectral efficiency, and support scalable, high-speed data transmission. High-capacity coherent optical transceiver engines are advanced optical modules that transmit data at ultra-high speeds over fiber networks using coherent detection and flexible modulation to optimize bandwidth and spectral efficiency. For instance, in March 2023, Infinera Corporation, a US-based telecommunications equipment provider, launched its 1.2-Tbps ICE7 optical engine. The ICE7 supports programmable operation with open APIs for integration into existing systems, 800G transmission over 3,000 kilometers, up to 30% lower cost per bit, and 60% lower power per bit compared to previous solutions. It also supports super C- and super L-band operation, enabling up to 12 THz of usable spectrum and substantial capacity increases.

In February 2025, Nokia Corporation, a Finland-based provider of telecommunications infrastructure and network technology, acquired Infinera for $2.3 billion. This acquisition allows Nokia to expand its optical networking solutions portfolio and strengthen its position in cloud and data center applications, enhancing its ability to support next-generation transport networks. Infinera is a US-based provider of optical transport networking equipment and software, delivering solutions for high-capacity data transmission and network scalability.

Major players in the elastic optical network market are Huawei Technologies Co. Ltd., Cisco Systems Inc., Fujitsu Limited, NEC Corporation, Nokia Corporation, Telefonaktiebolaget LM Ericsson, ZTE Corporation, Corning Incorporated, Furukawa Electric Co. Ltd., Juniper Networks Inc., Ciena Corporation, Sumitomo Electric Industries Ltd., Viavi Solutions Inc., Lumentum Holdings Inc., Ribbon Communications, Edgecore Networks Corporation, Applied Optoelectronics Inc., Ekinops SA, Fibrain sp. z o.o, and Optoscribe Ltd.

North america was the largest region in the elastic optical network market in 2024. Asia-pacific is expected to be the fastest-growing region in the forecast period. The regions covered in elastic optical network report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

The elastic optical network market research report is one of a series of new reports that provides elastic optical network market statistics, including the elastic optical network industry global market size, regional shares, competitors with the elastic optical network market share, detailed elastic optical network market segments, market trends, and opportunities, and any further data you may need to thrive in the elastic optical network industry. This elastic optical network market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Elastic optical network, or EON, is an advanced optical network technology that enables flexible and dynamic allocation of wavelength channels in fiber optic communication. Unlike traditional WDM systems with fixed channel spacing, EONs use flexible frequency grids and can adjust channel spacing and bandwidth according to demand, optimizing spectrum utilization. This allows efficient routing and data transmission by dynamically adapting the spectral width of signals based on bandwidth requirements, making EONs ideal for high-capacity, scalable optical networks.

The primary components of elastic optical networks are hardware, software, and services. Hardware-based EONs are advanced optical networking systems that employ flexible spectrum allocation and adaptive modulation techniques to transmit data efficiently across high-capacity networks while accommodating dynamic bandwidth demands. These networks utilize technologies such as wavelength division multiplexing, optical transport networks, optical add-drop multiplexers, and others. They are deployed in data centers, metropolitan networks, long-haul networks, cloud computing, and similar applications, serving end-users in telecommunications, IT and data centers, banking, financial services and insurance, healthcare, government, and other sectors.

The countries covered in the elastic optical network market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The elastic optical network market consists of revenues earned by entities providing services such as network optimization, network design, network maintenance, optical transport services, and support services. The market value includes the value of related goods sold by the service provider or included within the service offering. The elastic optical network market also includes sales of flexible spectrum grids, tunable transceivers, optical cross-connects, coherent optical technology devices, and network management software. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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