Market Overview
SDH Optical Synchronous Transmission Equipment Market is expected to grow at a CAGR of 4.22% during the forecasting period (2024-2031).
SDH is a standard for transmitting digital signals over optical fiber. SDH optical transmission equipment transmits and receives these digital signals over optical fibers. A catalogue of fiber optic transmission rates known as Synchronous Digital Hierarchy (SDH) carries various-sized digital signals. Low-bit-rate and high-rate data streams can be combined using SDH technology.
Additionally, since the entire network is synchronous, users can easily embed and extract specific bit streams from high-rate data streams. The Synchronous Optical Network (SONET) standard has been updated by the International Telecommunication Union's Telecommunication Standardization Sector to be known as SDH. Both technologies offer network interconnections that are quicker and less expensive than those offered by conventional Plesiochronous Digital Hierarchy (PDH) hardware.
Market Scope
| Metrics | Details |
| Market CAGR | 4.22% |
| Segments Covered | By Type, By Application, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Largest Market Share | North America |
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Market Dynamics
The increasing adoption of cloud computing drives the demand for high-capacity, reliable data transmission provided by SDH optical transmission equipment.
SDH is used in transmission systems for integrated services digital networks to transport Asynchronous Transfer Mode cells, Ethernet aggregations, PDH signals, storage area network signals and other communication signals. The advantage of using SDH systems is to boost market expansion. It consistently makes use of techniques for multiplexing and demultiplexing that are more simplistic. The bandwidth of an optical fiber is virtually limitless. It has enhanced maintenance procedures and is easily expandable to higher bit rates. Furthermore, the above-mentioned factors drive the global SDH optical synchronous transmission equipment market.
Growing adoption of fiber optical communication drives up the demand for the global SDH optical synchronous transmission equipment market
The foundation of the current societal communication infrastructure, fiber-optic communication networks, will need to undergo a significant evolution during the forecast period. Due to the popularity, effectiveness and speed of 5G mobile, cloud businesses and online services, internet data, video and other communications traffic are growing exponentially.
The capacity of switches and routers used in the networks of hyper-scale data centers is rising along with these rising traffic demands. High-capacity 400 Gigabit optical transceivers have been introduced this year to meet these demands and 800 Gigabit optical transceivers are being considered for future bandwidth upgrades.
The optical components used in these transceivers have typically been integrated optical components made of a single material, like silicon photonics or discrete components like modulators, receivers and variable wavelength lasers. In order to reduce size and power consumption, the next generation of 800G components and transceivers will need a higher level of integration. Furthermore, the growing demand for fiber optical communication supplements the market growth.
Ability to offer high speed, cost-effectiveness, compatibility and scalability, the demand for SDH is growing more over the forecast period
SDH is a standard for synchronous optical transmission equipment used to transmit digital signals over optical fiber. The main driving factors for the adoption of SDH equipment are: SDH allows for data transmission at very high speeds, making it suitable for applications that require high bandwidth, such as video conferencing and streaming. SDH can be more cost-effective than other types of data transmission, especially for long-distance communication.
It is generally more reliable than asynchronous transmission because it uses a clock signal to synchronize the sender and receiver. It can reduce the likelihood of errors in the transmission of data. SDH can also be easily scaled up to support increasing data transmission. Compatibility: SDH is compatible with various networking protocols, making it suitable for various applications. Therefore, these factors drive global market growth.
However, higher initial cost hampers the market growth. SDH equipment can be expensive to purchase and install, which may be a barrier for some organizations. Some other technologies are used for data transmissions, such as asynchronous transfer mode (ATM) and Ethernet, which some users over SDH may prefer.
COVID-19 Impact on Market
The COVID-19 pandemic has significantly impacted many industries and the market for SDH (Synchronous Digital Hierarchy) synchronous optical transmission equipment has been no exception. The economic downturn resulting from the pandemic has led to decreased demand for many products and services, including SDH equipment. The pandemic has disrupted supply chains for many industries, including telecommunications. It has led to shortages of some types of SDH equipment and delays in delivery for others. The shift to remote work and the closure of many businesses due to lockdowns have led to changes in the way that people use communication networks. It has resulted in some changes in the demand for SDH equipment.
Overall, the COVID-19 pandemic has negatively impacted the SDH synchronous optical transmission equipment market, but it isn't easy to quantify the exact extent of the impact.
Market Segmentation Analysis
The global SDH optical synchronous transmission equipment market is segmented based on type, application and region.
Increased usage low order multiplex systems bolster the demand for the communication application segment, which in turn supports global market growth
SDH equipment is used to transmit data over long distances for various communication purposes. It includes telephone calls, internet access and video conferencing.
Low-order multiplex systems, such as telephone system communication links, can be added to higher hierarchy levels using the synchronous mode of operation and removed again using add and drop. SDH recognizes a variety of hierarchies, including STM-1, STM-4, STM-16 or STM-64 (155 MBits, 622 MBits, 2,488 MBits, 9,953 MBits), following the levels specified by the standard. About five percent of the gross data rate is reserved for OAM tasks (Operations, Administration and Maintenance). The data is transparently transported over the SDH network in containers. Furthermore, the above factors drive the demand for the global SDH optical synchronous transmission equipment market.
Market Geographical Shares
Owing to the technological advancement in the telecommunication sector in the region supports the global market growth
In general, the North American market for telecommunications equipment, including SDH equipment, is constantly evolving and there are likely to be ongoing developments in this region. The growing demand for high-speed data transmission has driven the adoption of SDH equipment in North America. The increasing use of data-intensive applications such as video streaming and online gaming has driven this demand.
There have been several technological advancements in SDH equipment, including developing more advanced modulation schemes and using more efficient coding techniques. The advancements have led to increased capacity and data rates for SDH systems. Overall, the market for SDH optical synchronous transmission equipment in North America is expected to grow during the forecast period, driven by increasing demand for high-speed data transmission and the deployment of fiber optic networks.
Key Players
To develop new innovative technologies or systems for data transmission, telecommunications manufacturers around the world are making several strategic decisions in the global SDH optical synchronous transmission equipment market. The primary focus areas include product launches, partnerships, strategic acquisitions and mergers. The key players in the market are Huawei, Ericsson, Cisco, Tektronix, Ciena, Alcatel-Lucent, Fujitsu, ADTRAN, Infinera and ZTE.
Huawei
Overview: Huawei is a multinational technology company based in China specializing in telecommunications equipment and consumer electronics. Ren Zhengfei founded the company in 1987. The company is the leading global telecommunications equipment and smartphone manufacturer. Huawei is also a leading networking and telecom equipment provider and has a strong presence in the global market for these products. Its business segment includes consumer business, carrier business and enterprise business. It operates in Asia-Pacific, EMEA, China and the Americas.
Product Portfolio:
- OptiXtrans E6600 MS-OTN Platform: High-performance 100G/200G/400G, single fiber capacity greater than 20T, optical and electrical in a single platform, flexible board dimensions, and smooth evolution to 1T/2T are all characteristics of these products. With its 4-in-1 high integration of PCM/SDH/PKT/OTN and Multi-Service Optical Transport Network (MS-OTN) architecture, the Huawei OptiXtrans E6600 supports the smooth transition to the next generation of transport technology, liquid OTN. This MS-OTN Platform is a reliable transportation option for companies, particularly those in the banking, government, transportation, and energy sectors.
Key Development:
- In December 2022, In addition to the railway all-optical backbone network solution, Huawei unveiled the next-generation urban rail bearer network solution and the urban rail cloud optical network. Urban rail cloud optical network solutions offer high bandwidth, low latency, high security and high reliability, which makes it easier to build an infrastructure that supports the long-term growth of smart urban rails and better supports the building of smart urban rails based on cloud architecture. Huawei's urban rail cloud optical network solution features physical isolation, streamlined O&M, extremely low latency and ultra-broadband pipe.
The global SDH optical synchronous transmission equipment market report would provide approximately 53 tables, 50 figures and 190 Pages.
