Wavelength Division Multiplexer (WDM) Market is Expected to Reach $5.61 Billion by 2027

According to a new report published by Allied Market Research, titled, “Wavelength division multiplexer (WDM) market by type and industry vertical: opportunity analysis and industry forecast, 2020–2027”, the global wavelength division multiplexer industry size was valued at $3.56 billion in 2019, and is projected to reach $5.61 billion by 2027, registering a CAGR of 6.4%. The Asia-Pacific region is expected to be the leading contributor to the global WDM market during the forecast period, followed by North America and Europe.

Wavelength division multiplexer (WDM) is a technique in fiber-optic communications for multiplexing multiple optical carrier signals via a single optical fiber channel by changing the wavelengths of laser lights. In addition, it enables communication in both directions of the fiber cable. The network operators these days have to meet the rise in requirements of bandwidth as there is tremendous rise in internet usage by all sectors. Therefore, WDM being the fundamental block for high capacity optical communications network is used by network providers to meet the increase in demand and yield maximum capacity.

The global wavelength division multiplexer (WDM) market share is anticipated to witness significant growth over the forecast period. Factors, such as an increasing demand for high capacity network and effective communication; rapid growth in number of internet users as well as network traffic around the globe; and surge in telecommunication applications, drive the growth of the market. In addition, new product launches are projected to flourish the WDM market. However, the cost associated with dark fiber network may hamper the growth of the market. On the contrary, rise in advanced network infrastructure and increase in cloud and IP traffic are anticipated to create lucrative opportunities for the WDM market growth.

The global wavelength division multiplexer (WDM) market share is segmented into type, industry vertical, and region. By type, the market is bifurcated into CWDM and DWDM. The industry vertical segment is divided into IT & telecommunication, military & defense, oil & gas, and medical & healthcare.

Region-wise, the wavelength division multiplexer (WDM) market trends have been analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific contributed maximum revenue in 2019. This is attributed to surge in evolution of smart communication devices such as desktops and smartphones. China is one of the highest contributors to the APAC wavelength division multiplexer market revenue share.

This is attributed to the increased adoption of fiber optics cables to transmit signals and ensure least amount of loss. For instance, as per the China Internet Network Information Center (CNNIC) 2019 survey, in 2016, 80% of China’s broadband connection was by fiber; however, in 2019, this figure reached 91%.

Covid-19 Impact Analysis

The COVID-19 pandemic has impacted severely on the global electronics and semiconductor sector due to which production facility as well as new projects have stalled, which, in turn, have declined the demand in the industries. The operations of production and manufacturing industries have been heavily impacted by the outbreak of COVID-19. This resulted in slowdown in the wavelength division multiplexer market growth in 2020. 

Key Findings Of The Study

• The DWDM segment dominates the wavelength division multiplexer market and is also projected to be lucrative, in terms of growth rate, over the forecast period.
• APAC accounted for more than 50% of the WDM market share in 2019.
• IT & telecommunication is anticipated to witness the highest growth rate during the forecast period.
• China was the major shareholder in the Asia-Pacific WDM market, accounting for approximately 50% share in 2019.

The key players profiled in the report include Alcatel-Lucent, Ciena Corporation, Fujitsu Ltd., Huawei Technologies, ZTE, Cisco Systems, Inc., Infinera Corporation, ADVA Optical Networking SE, Aliathon Technology Ltd., and ADTRAN Inc. These players have adopted various strategies, such as product launch, acquisition, collaboration, and partnership, to expand their foothold in the industry.