Market Trends of Optical Encryption Industry
This section covers the major market trends shaping the Optical Encryption Market according to our research experts:
Layer 1 Encryption is Expected to Witness High Growth
- The fiber optic communication infrastructure was considered to be highly secured than traditional copper infrastructure, as it did not radiate and allowed more resilient tapping. However, the recent trend of cyber-attacks over the years has shown that even fiber optics cables are vulnerable for the attackers to tap in.
- To counter such attacks, organizations, including financial, government institutions, service providers, and data centers, have shown particular interest in increasing the security of data over OTN links. Additionally, few industries have made instances, such as confidentially, authentication, and integrity of data mandatory.
- The encryption of data at Layer 1 with Optical Transport Network ( OTN) provides the network operators the option to secure traffic in OTN efficiently and flexibly, without it affecting the service performance.
- Securing the optical layer with OTN encryption helps companies deliver maximum deployment, which can be rolled into other existing L1 transport network and service models, and provide the means to support new network architectures and revenue-generating services.
- Furthermore, encrypting traffic at the OTN layer enables scalability and flexibility to offer the G.709 standard, i.e., encryption from 1.25 Gb/s to 100 Gb/s, and after multiplexing, it allows 100 G OTN signals. This allows the network providers to offer bulk encryption service models, such as pay-as-you-grow services. Additionally, it helps the end users to start small and grow their lines as per the needs, thereby, minimizing the barrier of adoption of the market and fostering the growth of the market.
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Asia-Pacific is Estimated to Grow the Fastest Among all Regions
- The Asia-Pacific region is expected to hold a prominent share of the market, owing to the extent of networks, such as 5G, telecom, consumer electronics, data centers, and smart city initiatives in China, Malaysia, Thailand, India, and other developing countries in the region.
- Despite the recent outbreak of COVID-19, China has maintained its position as a 5G wireless network leader, as it has installed 160,000 5G stations spread across more than 50 cities, as telecom vendors aim to expand their standalone 5G coverage and capacity. Both the 5G networks and Big Data center installments remain the core elements of the country's digital infrastructure.
- Also, emerging countries in the region, such as India, are leveraging their IT industries to install public cloud-based data centers. As India is home for large private-sector employers, it has widely adopted data centers to meet the requirements for faster and secure transfer of data, which propels the market growth.
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