Global Optical Encryption Market Size & Growth Analysis Report, 2019-2025

Posted by nabeel on January 7th, 2021

The global optical encryption market is growing at a significant CAGR during the forecast period. Optical encryption is primarily developed for fiber optic cables. It is a method of securing data transmission in the transport layer of the network. Fiber optics have always considered to be more secure communication infrastructure than others as it is hard to tap and does not radiate. However, with technological advancement, it has become quite possible to tap the fiber optic cable and to acquire the transmitted data. Therefore, better security need for transmission of confidential data and authenticity for government and the private organization has become mandatory.

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Factors Driving the Market

One of the major factors driving the global optical encryption market is the growing requirement for secure data transmission medium and rising data center deployments. Data centers play an essential role in providing networking, storage, and communication to various government and non-government organizations. The rising data analytics has fueled the growth of data centers which in turn is assisting the optical encryption market growth. Further, increasing cyber-attacks across the globe is a serious concern for every organization owing to which the adoption of optical encryption has increased.


Moreover, banking, insurance and financial sectors (BFSI) are rapidly deploying optical encryption on accounts of protecting customer information. Further, owing to the rapid adoption of mobile banking and internet banking, it is crucial for banks to provide secure transmission which,in turn, is creating the demand for optical encryption. Additionally, the rising implementation of IoT and cloud-based services generate a huge amount of data traffic. Rising investment in smart city projects in emerging economies is driving the demand for optical encryption. Another key factor is technological advancement in the field of optical fiber that will propel the market in the near future.

The key players dominating the global optical encryption market include Acacia Communications, ADVA, Arista Networks, Broadcom, Centurylink, Ciena, Cisco, Coriant, ECI Telecom, Huawei, Infinera, Juniper Networks, Microsemi, Nokia, NuCrypt, PacketLight Networks, SSE Enterprise Telecoms, Smartoptics, Thales E-Security, and Windstream Holdings. These players adopt various strategies such as mergers and acquisitions, products, and services offering expansion, geographical expansion, and partnership and collaboration to stay competitive in the market.

For Instance, in Sep 2017, Acacia Communications Unveiled 1.2 Tbps AC1200 Coherent Module for DCI, Metro, and Long-Haul Applications. The new products are capable of providing speed upto 1.2 Tbps and are based on the company’s pico digital signal processor (DSP) ASIC. This new module supports security encryption and a huge range of host interfaces owing to which the need for any external device is eliminated.

Global Optical Encryption Market - Segment

By Encryption Layer

  • Layer 1
  • Layer 2
  • Layer 3

By Vertical

  • Military & Defense
  • BFSI (Banking, Financial Services & Insurance)
  • Healthcare
  • Retail
  • Transportation
  • Telecom & IT
  • Others (Energy and Utilities)

Global Optical Encryption Market – Region

North America

  • United States
  • Canada


  • Germany
  • United Kingdom
  • France
  • Spain
  • Italy
  • Rest of Europe


  • China
  • Japan
  • India
  • Rest of Asia-Pacific

Rest of the World

  • Middle East & Africa
  • Latin America

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Joined: November 26th, 2020
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