The report the growth of this market is driven by emerging requirement of regulatory compliances, growing concern over data security and privacy due to cyberattacks, and rising data center deployments.
The report finds that the greater than 10G and less than 40G data rate is expected to hold the largest share of the market during the forecast period. This can be attributed to the large-scale adoption of the optical encryption in different verticals such as BFSI, government, healthcare, and energy and utilities where the average data rate transfer is in the range of 10G and 40G.
The optical encryption market for the data center and cloud vertical is expected to grow at the highest CAGR during the forecast period. Data centers play a crucial role in delivering IT services and providing storage, communications, and networking to a growing number of networked devices, users, and business processes in general. The growing importance of data analytics has boosted the value and growth of data centers.
The Americas is expected to dominate the market with the largest share between 2018 and 2023. According to the report, this is due to the presence of some key players such as Ciena, Cisco, Infinera, Arista Networks, and Juniper Networks in the region. The high adoption of cloud-based applications in the Americas has led to a dramatic increase in the number of cyberattacks, which are also becoming more sophisticated. Also, there is increasing demand for optical encryption systems due to the need for regulatory compliance and security concerns.
See also: Encryption – a key security imperative