Optical encryption market projected to grow at CAGR of 8.9% between 2018 and 2023
Optical encryption market for Layer 1 to grow at highest CAGR during forecast period
The market for Layer 1 is expected to grow at the highest CAGR during the forecast period. The reason for this growth is the advantages such as reduced cost, lower latency, high bandwidth efficiency, improved performance, and high availability, offered by Layer 1 encryption. Also, Layer 1 encryption supports a variety of client and transport interfaces for both current and future services.
The banking, financial services, and insurance (BFSI) vertical to hold largest share of optical encryption market during forecast period
The market for BFSI vertical is expected to lead the market between 2018 and 2023. The optical encryption is being increasingly deployed by the BFSI sector to protect their customers, meet government and industry data security compliance standards, facilitate security auditing, and avoid reputation damage caused by data breaches.
Optical encryption market in APAC to grow at highest CAGR during forecast period
The market in APAC is expected to grow at the highest CAGR between 2018 and 2023. The growth of the market in APAC is due to the extension of the network in China, Thailand, Malaysia, South Korea, India, and other developing countries in APAC. APAC is the largest producer as well as consumer of smartphones, laptops, televisions (TVs), and various other data-generating devices across the world.
Breakdown of the profile of primary participants:
- By Company Type: Tier 1 = 30 %, Tier 2 = 45%, and Tier 3 = 25%
- By Designation: C-Level Executives = 67%, Directors = 33%
- By Region: Americas = 50%, Europe = 25%, APAC = 20%, and RoW = 5%
Major players in the optical encryption market include Ciena (US), ADVA (Germany), Nokia (Finland), ECI Telecom (Israel), Cisco (US), Huawei Technologies (China), Microsemi (US), Infinera (US), Arista Networks (US), and Acacia Communications (US).
Research Coverage
The optical encryption market has been segmented based on encryption layer into Optical Transport Network (OTN) or Layer 1 (L1), Media Access Control security (MACsec) or Layer 2 (L2), and Internet Protocol security (IPsec) or Layer 3 (L3). The optical encryption market has been segmented based on data rate into less than 10G, greater than 10G and less than 40G, greater than 40G and less than 100G, and greater than 100G. The optical encryption market, by vertical, has been segmented into banking, financial services, and insurance (BFSI); government; healthcare; data center and cloud; energy and utilities; and other verticals including retail, media & entertainment, education, and process and manufacturing industries. Furthermore, the report forecasts the market size for various segments with regard to 4 main regions—the Americas, Europe, Asia Pacific (APAC), and Rest of the World (RoW).
Reasons to Buy the Report
The report would help market leaders/new entrants in the optical encryption market in the following ways:
1. This report segments the optical encryption market comprehensively and provides the closest approximations of the overall market size, as well as that of the subsegments across different verticals and regions.
2. The report helps stakeholders understand the pulse of the market and provides information on key market drivers, restraints, challenges, and opportunities.
3. This report would help stakeholders understand their competitors better and gain more insights to enhance their position in the business. The competitive landscape section includes competitor ecosystem, product launches, contracts, acquisitions, and partnerships, in the optical encryption market.
Table of Contents
1 Introduction
1.1 Objectives of Study
1.2 Definition
1.3 Study Scope
1.3.1 Markets Covered
1.3.2 Geographic Scope
1.3.3 Years Considered for the Study
1.4 Currency
1.5 Limitations
1.6 Market Stakeholders
2 Research Methodology
2.1 Research Data
2.1.1 Secondary Data
2.1.1.1 List of Major Secondary Sources
2.1.1.2 Secondary Sources
2.1.2 Primary Data
2.1.2.1 Primary Interviews With Experts
2.1.2.2 Key Data From Primary Sources
2.1.2.3 Key Industry Insights
2.1.2.4 Breakdown of Primaries
2.1.3 Secondary and Primary Research
2.2 Market Size Estimation
2.2.1 Bottom-Up Approach
2.2.1.1 Approach for Capturing the Market Share By Bottom-Up Analysis (Demand Side)
2.2.2 Top-Down Approach
2.2.2.1 Approach for Capturing the Market Share By Top-Down Analysis (Supply Side)
2.3 Market Ranking Estimation
2.4 Market Breakdown and Data Triangulation
2.5 Research Assumptions
3 Executive Summary
4 Premium Insights
4.1 Attractive Opportunities in the Optical Encryption Market
4.2 Optical Encryption Market, By Encryption Layer
4.3 Market, By Data Rate
4.4 Market in APAC, By Vertical and Country
4.5 Country-Wise Analysis of Optical Encryption Market
4.6 Optical Encryption Market, By Region
5 Market Overview
5.1 Introduction
5.2 Market Dynamics
5.2.1 Drivers
5.2.1.1 Emerging Requirements for Regulatory Compliances
5.2.1.2 Growing Concern Over Data Security and Privacy Due to Cyberattacks
5.2.1.3 Increasing Internet Penetration and Data Traffic
5.2.1.4 Rising Data Center Deployments
5.2.2 Restraints
5.2.2.1 Increasing Network Complexity
5.2.3 Opportunities
5.2.3.1 Increasing Adoption of Cloud-Based Services and Iot
5.2.3.2 Growing Implementation of Network in Developing Countries
5.2.4 Challenges
5.2.4.1 Varying Government Policies for Data Protection Across Different Regions
5.3 Value Chain Analysis
6 Optical Encryption Market, By Encryption Layer
6.1 Introduction
6.2 Layer 1
6.3 Layer 2
6.4 Layer 3
7 Optical Encryption Market, By Data Rate
7.1 Introduction
7.2 Less Than 10g
7.3 Greater Than 10g and Less Than 40g
7.4 Greater Than 40g and Less Than 100g
7.5 Greater Than 100g
8 Optical Encryption Market, By Vertical
8.1 Introduction
8.2 BFSI
8.3 Government
8.4 Healthcare
8.5 Data Center and Cloud
8.6 Energy and Utilities
8.7 Others
9 Optical Encryption Market, By Geography
9.1 Introduction
9.2 Americas
9.2.1 US
9.2.2 Canada
9.2.3 Mexico
9.2.4 Brazil
9.2.5 Rest of the Americas
9.3 Europe
9.3.1 Germany
9.3.2 France
9.3.3 UK
9.3.4 Italy
9.3.5 Rest of Europe
9.4 Asia Pacific
9.4.1 China
9.4.2 Japan
9.4.3 South Korea
9.4.4 India
9.4.5 Rest of APAC
9.5 Rest of the World
9.5.1 Middle East
9.5.2 Africa
10 Competitive Landscape
10.1 Overview
10.2 Market Ranking Analysis
10.3 Competitive Scenario
10.3.1 Contracts
10.3.2 Product Launches
10.3.3 Acquisitions and Partnerships
11 Company Profiles
11.1 Introduction
11.2 Key Players
11.2.1 Ciena
11.2.2 Adva
11.2.3 Nokia
11.2.4 ECI Telecom
11.2.5 Cisco
11.2.6 Huawei
11.2.7 Microsemi
11.2.8 Infinera
11.2.9 Arista Networks
11.2.10 Acacia Communications
11.3 Other Key Players
11.3.1 Broadcom
11.3.2 Juniper Networks
11.3.3 Packetlight Networks
11.3.4 Thales E-Security
11.3.5 Centurylink
11.4 Key Innovators
11.4.1 Windstream Holdings
11.4.2 Nucrypt
11.4.3 SSE Enterprise Telecoms
11.4.4 Coriant
11.4.5 Smartoptics
12 Appendix
12.1 Discussion Guide
12.2 Knowledge Store: Subscription Portal
12.3 Introducing RT: Real-Time Market Intelligence
12.4 Available Customizations
12.5 Related Reports
12.6 Author Details
List of Tables (68 Tables)
Table 1 List of Regulatory Compliance for Data Protection
Table 2 Optical Encryption Market, By Encryption Layer, 2015–2023 (USD Million)
Table 3 Market, By Encryption Layer, 2015–2023 (Thousand Units)
Table 4 Market for Layer 1, By Data Rate, 2015–2023 (USD Million)
Table 5 Market for Layer 1, By Data Rate, 2015–2023 (Units)
Table 6 Optical Encryption Market for Layer 2, By Data Rate, 2015–2023 (USD Million)
Table 7 Market for Layer 2, By Data Rate, 2015–2023 (Units)
Table 8 Optical Encryption Market for Layer 3, By Data Rate, 2015–2023 (USD Million)
Table 9 Market for Layer 3, By Data Rate, 2015–2023 (Units)
Table 10 Comparative Analysis of Optical Encryption Layers
Table 11 Optical Encryption Market, By Data Rate, 2015–2023 (USD Million)
Table 12 Market, By Data Rate, 2015–2023 (Thousand Units)
Table 13 Optical Encryption Market for Less Than 10g, By Encryption Layer, 2015–2023 (USD Million)
Table 14 Market for Less Than 10g, By Encryption Layer, 2015–2023 (Units)
Table 15 Optical Encryption Market for Greater Than 10g and Less Than 40g, By Encryption Layer, 2015–2023 (USD Million)
Table 16 Market for Greater Than 10g and Less Than 40g, By Encryption Layer, 2015–2023 (Units)
Table 17 Market for Greater Than 40g and Less Than 100g, By Encryption Layer, 2015–2023 (USD Million)
Table 18 Market for Greater Than 40g and Less Than 100g, By Encryption Layer, 2015–2023 (Units)
Table 19 Market for Greater Than 100g, By Encryption Layer, 2015–2023 (USD Million)
Table 20 Market for Greater Than 100g, By Encryption Layer, 2015–2023 (Units)
Table 21 Market, By Vertical, 2015–2023 (USD Million)
Table 22 Market, By Vertical, 2015–2023 (Thousand Units)
Table 23 Optical Encryption Market for BFSI, By Encryption Layer, 2015–2023 (USD Million)
Table 24 Market for BFSI, By Encryption Layer, 2015–2023 (Units)
Table 25 Market for BFSI, By Data Rate, 2015–2023 (USD Million)
Table 26 Market for BFSI, By Data Rate, 2015–2023 (Units)
Table 27 Optical Encryption Market for Government, By Encryption Layer, 2015–2023 (USD Million)
Table 28 Market for Government, By Encryption Layer, 2015–2023 (Units)
Table 29 Market for Government, By Data Rate, 2015–2023 (USD Million)
Table 30 Market for Government, By Data Rate, 2015–2023 (Units)
Table 31 Optical Encryption Market for Healthcare, By Encryption Layer, 2015–2023 (USD Million)
Table 32 Market for Healthcare, By Encryption Layer, 2015–2023 (Units)
Table 33 Market for Healthcare, By Data Rate, 2015–2023 (USD Million)
Table 34 Market for Healthcare, By Data Rate, 2015–2023 (Units)
Table 35 Optical Encryption Market for Data Center and Cloud, By Encryption Layer, 2015–2023 (USD Million)
Table 36 Market for Data Center and Cloud, By Encryption Layer, 2015–2023 (Units)
Table 37 Market for Data Center and Cloud, By Data Rate, 2015–2023 (USD Million)
Table 38 Market for Data Center and Cloud, By Data Rate, 2015–2023 (Units)
Table 39 Optical Encryption Market for Energy and Utilities, By Encryption Layer, 2015–2023 (USD Million)
Table 40 Market for Energy and Utilities, By Encryption Layer, 2015–2023 (Units)
Table 41 Market for Energy and Utilities, By Data Rate, 2015–2023 (USD Million)
Table 42 Market for Energy and Utilities, By Data Rate, 2015–2023 (Units)
Table 43 Optical Encryption Market for Other Verticals, By Encryption Layer, 2015–2023 (USD Million)
Table 44 Market for Other Verticals, By Encryption Layer, 2015–2023 (Units)
Table 45 Market for Other Verticals, By Data Rate, 2015–2023 (USD Million)
Table 46 Market for Other Verticals, By Data Rate, 2015–2023 (Units)
Table 47 Market, By Region, 2015–2023 (USD Million)
Table 48 Market, By Region, 2015–2023 (Thousand Units)
Table 49 Market in Americas, By Vertical, 2015–2023 (USD Million)
Table 50 Market in Americas, By Vertical, 2015–2023 (Units)
Table 51 Market in Americas, By Country, 2015–2023 (USD Million)
Table 52 Market in Americas, By Country, 2015–2023 (Units)
Table 53 Optical Encryption Market in Europe, By Vertical, 2015–2023 (USD Million)
Table 54 Market in Europe, By Vertical, 2015–2023 (Units)
Table 55 Market in Europe, By Country, 2015–2023 (USD Million)
Table 56 Market in Europe, By Country, 2015–2023 (Units)
Table 57 Optical Encryption Market in APAC, By Vertical, 2015–2023 (USD Million)
Table 58 Market in APAC, By Vertical, 2015–2023 (Units)
Table 59 Market in APAC, By Country, 2015–2023 (USD Million)
Table 60 Market in APAC, By Country, 2015–2023 (Units)
Table 61 Optical Encryption Market in RoW, By Vertical, 2015–2023 (USD Million)
Table 62 Market in RoW, By Vertical, 2015–2023 (Units)
Table 63 Market in RoW, By Region, 2015–2023 (USD Million)
Table 64 Market in RoW, By Region, 2015–2023 (Units)
Table 65 Ranking of Top 5 Players in the Optical Encryption Market, 2017
Table 66 10 Most Recent Contracts in this market
Table 67 10 Most Recent Product Launches in this market
Table 68 5 Most Recent Acquisitions and Partnerships in this market
List of Figures (42 Figures)
Figure 1 Optical Encryption Market: Research Design
Figure 2 Process Flow
Figure 3 Market Size Estimation Methodology: Bottom-Up Approach
Figure 4 Market Size Estimation Methodology: Top-Down Approach
Figure 5 Optical Encryption Market for Layer 1 to Grow at Highest CAGR During Forecast Period
Figure 6 Optical Encryption Devices With Data Rate Greater Than 10g and Less Than 40g to Hold Largest Share of market During Forecast Period
Figure 7 Optical Encryption Market for Data Center and Cloud Vertical to Grow at Highest CAGR During Forecast Period
Figure 8 Market in APAC to Grow at Highest CAGR During Forecast Period
Figure 9 Growing Concern Over Data Security and Privacy Due to Cyberattacks is Driving Growth of market
Figure 10 Market for Layer 1 Expected to Grow at Highest CAGR During Forecast Period
Figure 11 Greater Than 10g and Less Than 40g to Hold Largest Share of the market During Forecast Period
Figure 12 China to Hold Largest Share of Optical Encryption Market in APAC in 2018
Figure 13 US Expected to Hold Largest Share of market in 2018
Figure 14 Optical Encryption Market in APAC Expected to Grow at Highest CAGR During Forecast Period
Figure 15 Growing Concern Over Data Security and Privacy Due to Cyberattacks is Driving the Growth of the market
Figure 16 Global IP Traffic (2016–2021)
Figure 17 Global Mobile Data Traffic and Internet Penetration (2016–2021)
Figure 18 Global Data Center IP Traffic Growth (2016–2021)
Figure 19 Regional Analysis of Data Center Growth (2016–2021)
Figure 20 Cloud Service Trends: SaaS to Be Most Widely Deployed Global Cloud Service
Figure 21 Increasing Penetration Rate of Connected Objects (2012–2020)
Figure 22 Unique Subscriber Penetration, By Region (In 2017, 2020, and 2025)
Figure 23 Value Chain Analysis: Major Value is Added By Research, Design, and Development and Original Equipment Manufacturing Phases
Figure 24 Optical Encryption Market for Layer 1 to Grow at Highest CAGR During Forecast Period
Figure 25 Market for Greater Than 100g Data Rate to Grow at Highest CAGR During Forecast Period
Figure 26 Market for Data Center and Cloud Vertical to Grow at Highest CAGR During Forecast Period
Figure 27 Geographic Snapshot: Optical Encryption Market
Figure 28 Americas: Snapshot of Market
Figure 29 Europe: Snapshot of Market
Figure 30 APAC: Snapshot of Market
Figure 31 RoW: Snapshot of Market
Figure 32 Contracts Emerged as Key Growth Strategy Adopted By Market Players Between January 2015 and December 2017
Figure 33 Evaluation Framework: Optical Encryption Market
Figure 34 Ciena: Company Snapshot
Figure 35 Adva: Company Snapshot
Figure 36 Nokia: Company Snapshot
Figure 37 Cisco: Company Snapshot
Figure 38 Huawei: Company Snapshot
Figure 39 Microsemi: Company Snapshot
Figure 40 Infinera: Company Snapshot
Figure 41 Arista Networks: Company Snapshot
Figure 42 Acacia Communications: Company Snapshot
Samples
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Executive Summary
Companies Mentioned
- Acacia Communications
- Adva
- Arista Networks
- Broadcom
- Centurylink
- Ciena
- Cisco
- Coriant
- ECI Telecom
- Huawei
- Infinera
- Juniper Networks
- Microsemi
- Nokia
- Nucrypt
- Packetlight Networks
- Smartoptics
- SSE Enterprise Telecoms
- Thales E-Security
- Windstream Holdings
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 142 |
| Published | June 2018 |
| Forecast Period | 2018 - 2023 |
| Estimated Market Value ( USD | $ 2.77 billion |
| Forecasted Market Value ( USD | $ 4.24 billion |
| Compound Annual Growth Rate | 8.9% |
| Regions Covered | Global |
| No. of Companies Mentioned | 20 |
