Global Optical Encryption Market 2022-2028

Global Optical Encryption Market 2022-2028

Optical encryption market is expected to grow at a moderate rate during the forecast period 2022-2028. Optical encryption is a medium to secure in-flight data in the network transport layer. It is carried over optical waves across fiber-optic cables. With an increasing number of data leaks and high-profile breaches, cybersecurity is a major concern. For instance, according to the Executive Officer of the President of the US, the US economy has incurred the loss due to malicious cyber activity costing between $57 billion to $109 billion in 2021. Three Ukrainian energy distribution companies were targeted for cyber-attacks in December 2015. This resulted in electricity outages for nearly 225,000 customers across Western Ukraine’s Ivano-Frankivsk region. The attackers achieved unauthorized access into the corporate network of a regional electricity distribution company. About twenty-three 35kV and seven 110 kV substations were disconnected for three hours. This became possible due to the theft of credentials from corporate networks. The attackers were trying to theft credentials from 6 months before and finally succeed. Such kinds of cybersecurity threats are expected to encourage the demand for optical encryption technologies. Optical encryption provides benefits such as providing no information about underlying services and adding no latency. This enables to provide an exceptionally secure connection to the infrastructure by protecting data from theft. Other crucial factors that are contributing to the growth of the market include rising investment in smart city projects and advances in optical encryption techniques.

The global optical encryption market is segmented on the basis of the encryption layer and vertical. Based on the encryption layer, the market is further classified into layer 1, layer 2 and layer 3. Additionally, on the basis of vertical, the market is further classified into military and defense, government, BFSI (Banking, financial services, and insurance), healthcare, retail, transportation, telecom & IT, and others. There has been a significant demand for optical encryption in BFSI to protect information of their customers. BFSI industry is susceptible to a breach of data. Hence, it requires upgrading transaction and processing technologies. In addition, the industry requires end-to-end security solutions for optimizing operations against external and internal threats. Due to services, including mobile banking, smart banking, and internet banking, the payment security transmitted over the network is a prime object for BFSI organizations. This, in turn, increases the demand for optical encryption solutions to control and secure sensitive data of customers by encrypting data, files, and emails, as well as offers financial security.

Geographically, the global optical encryption market is segmented into four major regions, such as North America, Europe, Asia-Pacific, and rest of the world (RoW). The factors that are encouraging the demand for optical encryption market in North America include well-developed IT infrastructure and significant cyber-attacks in the region. However, Asia-Pacific is anticipated to witness considerable growth in the market due to the increasing number of smart city projects and rising adoption of cloud-based services. The major players in the market include Cisco Systems, Inc., Infinera Corp., Ciena Corp., ECI Telecom Ltd., and Huawei Technologies Co., Ltd. The crucial strategies adopted by these companies include merger and acquisitions, product launches and collaborations to expand market share globally. As an instance, in October 2021, Infinera Corp. acquired Coriant, Inc., a global supplier of open network solutions. It offers solutions for major global network operators. The acquisition will enable Infinera Corp. to position as one of the major providers of vertically integrated optical network equipment across the globe. This will enable the company to deliver a strong portfolio of end-to-end and advanced packet optical network solutions for internet content providers and communication service providers.

Market Segmentation

Global Optical Encryption Market Research and Analysis by Encryption Layer

Global Optical Encryption Market Research and Analysis by Vertical

The Report Covers

Comprehensive research methodology of the global optical encryption market.

This report also includes a detailed and extensive market overview with key analyst insights.

An exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.

Analysis of regional regulations and other government policies impacting the global optical encryption market.

Insights about market determinants which are stimulating the global optical encryption market.

Detailed and extensive market segments with regional distribution of forecasted revenues.

Extensive profiles and recent developments of market players.