Optical Encryption Market Size, Share, Trends and Forecast …

Optical encryption market is expected to grow at a moderate rate during the forecast period 2019-2025. 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 2016. 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 Ukraines 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 2018, 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.

Research Methodology:

The market study of the optical encryption market is incorporated by extensive primary and secondary research conducted by the research team at OMR. Secondary research has been conducted to refine the available data to breakdown the market in various segments, derive total market size, market forecast, and growth rate. Different approaches have been worked on to derive the market value and market growth rate. Our team collects facts and data related to the market from different geography to provide a better regional outlook. In the report, the country-level analysis is provided by analyzing various regional players, regional tax laws and policies, consumer behavior and macro-economic factors. Numbers extracted from Secondary research have been authenticated by conducting proper primary research. It includes tracking down key people from the industry and interviewing them to validate the data. This enables our analyst to derive the closest possible figures without any major deviations in the actual number. Our analysts try to contact as many executives, managers, key opinion leaders, and industry experts. Primary research brings authenticity in our reports.

Secondary Sources Include

The report is intended for government and private companies for overall market analysis and competitive analysis. The report provides in-depth analysis on market size, intended quality of the service preferred by consumers. The report will serve as a source for 360-degree analysis of the market thoroughly integrating different models.

Market Segmentation

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