Introduction to Optical Encryption
Optical encryption is a way of securing in-flight data, which is in transmission in the transportation layer of the network as it is carried over optical waves across fiber-optic cables. It doesn’t come at the cost of fiber bandwidth owing to no requirement of underlying payload and no extension of optical transport network frame. This, as a result, becomes the most important method of encrypting the data optically for the next generation and core optical transport layer globally. The ongoing security threats, including headlines about fiber cable intrusions bolsters the need for robust in-flight optical encryption.
Market Size and Forecast
Emerging need of regulatory compliances, growing concern over privacy of data and rising incidents of cyber frauds, as well as high data center deployments are some of the significant factors boosting the market growth. The optical encryption market is anticipated to record a significant CAGR over the forecast period, i.e., 2020-2028. The market is segmented by encryption layer into OTN/layer 1, MACsec/layer 2, and IPsec/layer 3. Among these segments, the segment for IPsec/layer 3 is anticipated to hold the leading share in the market on account of large-scale IPsec/layer 3 utilization in enterprises, internet-based virtual private networks and government networks. Further, it offers seamless security to application, transport layers and networks of all sizes.
Rising Concerns Towards Privacy for Data Security to Boost the Market Growth
With the continuing expansion of network connectivity through mobile devices, cloud data centers and internet of things, the cases of data breach and confidential information leakage have gone to its peak. This has resulted to increasing threats of cyber-attacks and fiber cable intrusion. Owing to the growing requirement of cyber security among the enterprises to control the effects of cyber-attacks, the demand for optical encryption is estimated to increase. According to the UK government, over four in ten of all UK businesses suffers at least one breach or cyberattack in 12 months. Additionally, the market growth is attributed to the ability of optical encryption in protecting in-flight data and guarding against network intrusions. These factors are anticipated to significantly expand the optical encryption market.
Growing Demand for Cloud Services and Data Centers to Drive the Market Growth
There is a global ever-increasing penetration of cloud services and data centers deployment in recent years. Optical encryption provides first-level and simple-to-implement defense for communications between data centers as well as simplifies the network architecture. Furthermore, rapidly increasing volumes of data have led organizations to follow various data security laws and regulatory compliance which are expected to fuel the market growth. On the back of these, the optical encryption market is predicted to grow over the forecast period. CLICK TO DOWNLOAD SAMPLE REPORT
Lack of Network Stability and Simplicity to Hamper the Market Growth
Despite the advancement in-flight data encryption solutions, there is a possibility of unstable network infrastructure and limited network-oriented approach. Also, there is incremented complexity associated with managing the network. This is estimated to hinder the growth of optical encryption market in the future.
Our in-depth analysis of the optical encryption market includes the following segments:
By Encryption Layer
By Data Rate
By End User
On the basis of regional analysis, the optical encryption market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The market for optical encryption in North America is anticipated to hold the largest share in the market on account of presence of leading market players in the region which provides and market optical encryption. Moreover, increase in global threat of cyber-attacks owing to huge adoption of cloud-based applications by network operators in this region further promotes optical encryption. The market in Asia Pacific region is predicted to grow at the highest rate during the forecast period on account of optical transport network data encryption capabilities in countries such as China, South Korea and India along with the increase in usage of smartphones, laptops, televisions, and several other data generating devices.
The optical encryption market is further classified on the basis of region as follows:
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