Optical encryption Market is expected to reach US$ 4.10 billion by 2026 at a CAGR of 8.5% during forecast year. Optical encryption is a transmission of data in the transport layer of the networking layer over fiber optic cable. Increasing demand for regulatory compliances and privacy for data security owing to cyber-attacks are growing the optical encryption market.
Rising concern over data security and increasing large number of data deployment center are the factors, which drive the market with high rate of CAGR during forecast year. Network complexity is limiting the growth of the optical encryption market.
Optical Encryption Market is segmented by encryption layer, data rate, application and region. Optical encryption market by encryption layer otn or layer1, macsec or layer 2, and IPsec or layer 3. The IPsec or layer 3 is expected to grow optical encryption market during forecast year owing to it is widely used in internet based virtual private networks. IPsec transmits the packet of date over network of computing system. IPsec provides seamless security for application layer which is used in all type of the network such as local area network to wide area network.
By data rate, optical encryption market is segmented into less than 10G, greater than 10G to less than 40G, greater than 40G to less than 100 G and greater than 100 G. The optical encryption market for greater than 100G is projected to grow during forecast year owing increasing demand for high bandwidth by cloud services and mobile devices, which will provide 100G data rate for any packet size of data for transmission . Based on application, optical encryption is used in array of applications such as Bank, Financial and insurance service, Government, Healthcare, Data Centre & Cloud, and Energy & Utilities. The optical encryption market for data center and cloud services are expected to grow during forecast year owing to data center provides information technology services, storage and communication and helps to increase large number of networking to the network device.
By region, Asia-Pacific is expected to reach high grow during forecast year owing to increasing in demand of networking by developing countries such as China, India , Malaysia and Thailand in the Asia-Pacific region. Growing demand for data generating devices such as consumer tablets, smartphone and television driving the optical encryption market in this region.