by Synchronous Optical Network (SON) is a next-generation optical transport network technology that employs synchronous digital hierarchy (SDH) to enable transmission of data, voice, and video using dense wavelength division multiplexing (DWDM) technology. SON utilizes optical fiber as the transmission medium and supports various protocols such as Ethernet, Fibre Channel, asynchronous transfer mode (ATM), and synchronous digital hierarchy (SDH). The technology is primarily used by telecommunications carriers to provide services to enterprises and consumers by establishing optical core networks. The rise of 5G networks worldwide has created tremendous demand for high-speed, scalable, and reliable networks to support the increased traffic. This presents a lucrative opportunity for the growth of the SON market.
The global Synchronous Optical Network market is estimated to be valued at US$ 7.26 Mn in 2024 and is expected to exhibit a CAGR of 7.5% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
The increasing number of mobile subscribers and the rollout of 5G networks require telecom operators to upgrade their existing infrastructure to meet the capacity and latency demands of 5G. Synchronous Optical Networking technology supports these requirements through its ability to deliver ultra-high bandwidth, low latency, and network scalability.
Market Dynamics:
The opportunity presented by the adoption of 5G is one of the key drivers propelling the SON market. As 5G deployment progresses, it is expected to interconnect various new-age technologies ranging from autonomous vehicles and IoT to augmented reality and smart cities. This will exponentially increase the volume of data traffic and require network infrastructure that can seamlessly scale up while delivering low latency connectivity. SON excels in these aspects through its ability to deliver super-fast transmission speeds up to 100Gbps and manage latency levels below 1 millisecond. Additionally, SON offers easy upgradation of existing telecom networks through smooth integration with existing network topologies. These advantages make it a preferred medium-haul and long-haul networking technology for 5G as well as future applications. Another driver for the market is the increasing demand for cloud services due to remote working and online learning practices during the COVID-19 pandemic. this has further augmented the need for high-performance networking solutions.
Segment Analysis
The global synchronous optical network market is dominated by the long haul segment. This segment accounts for over 60% share of the overall market owing to the rising demand for seamless long distance communication through fiber optic networks. Long haul fiber optic networks are being extensively used by telecommunication companies to carry voice, data and video traffic across countries and continents.
PEST Analysis
Political: Governments across major economies are investing heavily in developing national fiber optic backbone networks to improve digital infrastructure. This is positively impacting the growth of the synchronous optical network market.
Economic: Rise in data consumption driven by increased internet and smartphone penetration is raising demand for high speed fiber networks. Large enterprises are also upgrading their WAN networks to SOWN to support bandwidth intensive applications.
Social: Rising use of over-the-top media services and online streaming is generating more internet traffic. This is necessitating network upgrades to synchronous optical networks to ensure seamless delivery of bandwidth heavy content.
Technological: Advancements in network virtualization, software defined networks and network function virtualization are enabling improved utilization of bandwidth through SOWN. This is supporting their increased adoption.
Key Takeaways
The Global Synchronous Optical Network Market Growth is expected to witness high over the forecast period of 2024 to 2031 driven by increasing data traffic and demand for higher network speeds. The global Synchronous Optical Network market is estimated to be valued at US$ 7.26 Mn in 2024 and is expected to exhibit a CAGR of 7.5% over the forecast period 2024 to 2031.
Regionally, North America accounts for the largest share of over 35% of the overall market. Growing digitalization trends and major technology advancements in the region are driving the growth of synchronous optical networks. Countries like the US and Canada are investing heavily in fiber networks under national broadband plans.
Key players: Key players operating in the synchronous optical network market are ABB Ltd., Komatsu Ltd., Sandvik Mining and Construction, Atlas Copco, Alcatel-Lucent, Caterpillar Inc., Cisco Systems Inc., Hitachi Construction Machinery Co. Ltd., Outotec Oyj, and Joy Global Inc. ABB Ltd. and Cisco Systems Inc. currently command around 35% of the overall market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
