Disaggregated Optical System Market Forecasted to Achieve US $13.91 Billion by 2029

The Business Research Company

The Business Research Company’s Disaggregated Optical System Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034

LONDON, GREATER LONDON, UNITED KINGDOM, October 27, 2025 /EINPresswire.com/ -- How Big Is The Disaggregated Optical System Market In 2025?
The size of the disaggregated optical system market has been experiencing rapid expansion in recent years. It is projected that from a value of $6.55 billion in 2024, it will rise to $7.64 billion in 2025, yielding a compound annual growth rate (CAGR) of 16.5%. This substantial growth during the historical period is driven by factors such as an increase in internet penetration, a rise in enterprise data usage, the burgeoning demand for cloud adoption, a significant surge in the use of international bandwidth, the expansion of the telecom subscriber base, and the growing number of government initiatives aimed at broadening broadband access.

In the coming years, the market size of disaggregated optical systems is predicted to witness significant growth, expanding to $13.91 billion by 2029, with a compound annual growth rate (CAGR) of 16.2%. The growth during this projected period is fueled by the increasing uptake of 5G networks, an escalated demand for cost-effective network solutions, a spike in the implementation of hyperscale data centers, cross-border fiber projects' extension, an upsurge in digital transformation investments, and heightened dependence on low-latency connectivity. Key trends anticipated during this period consist of improvements in silicon photonics technology, breakthroughs in hollow core fiber technology, progression in space division multiplexing, quantum key distribution advancements, the inclusion of software-defined networking, and the evolution of photonic integrated circuits.

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What Are The Key Driving Factors For The Growth Of The Disaggregated Optical System Market?
As data traffic intensifies, the growth of the disaggregated optical system market is predicted to skyrocket. The term 'data traffic' is related to the movement of digital data across communication networks during a specified time frame. The sharp rise in this data traffic can be attributed to the burgeoning growth of video streaming, which necessitates a significant amount of bandwidth due to the consumption of high-definition and on-demand content. This, in turn, intensifies network utilisation. Disaggregated optical systems enhance the capacity for data traffic by providing operators with the ability to independently scale, manage, and upgrade optical components. This promotes bandwidth efficiency, curbs network congestion, and caters to the escalating data demands. For example, Ericsson, a telecommunications company based in Sweden, stated in June 2025 that 5G encompassed 35% of mobile data traffic by the conclusion of 2024, escalating from 26% in 2023. This figure is forecasted to reach 80% by 2030. Therefore, the rise in data traffic is stimulating the growth of the market for disaggregated optical systems.

Who Are The Key Players In The Disaggregated Optical System Industry?
Major players in the Disaggregated Optical System Global Market Report 2025 include:
• Huawei Technologies Co. Ltd.
• International Business Machines Corporation
• Cisco Systems Inc.
• Jabil Inc.
• Sumitomo Electric Industries Ltd.
• Fujitsu Limited
• NEC Corporation
• Nokia Corporation
• Marvell Technology Inc.
• Coherent Corp.

What Are The Upcoming Trends Of Disaggregated Optical System Market In The Globe?
Top-tier companies in the disaggregated optical systems industry are concentrating on creating innovative products like disaggregated optical transponders in order to boost scalability, adaptability, and cost-efficiency. Modular devices known as disaggregated optical transponders enable the conversion, transmission, and reception of optical signals over fiber networks and they support independent scaling and vendor interoperability for a more effective and flexible optical communication. For example, Edgecore Networks, a company based in Taiwan that offers open infrastructure solutions, in January 2025, unveiled the Phoenix AMX3200. This product, a high-capacity C-band optical transponder and muxponder, promotes a disaggregated design and a support for open operating environments. Suitable for linking to data centers and service providers' backhaul requirements, the AMX3200 can manage a total of 3.2 Tbps, providing up to 400G support. It employs a modular 1RU chassis outfitted with SLED-based line modules, resilient power and cooling systems, and PTP time synchronization function. The AMX3200 aims to equip operators with the necessary flexibility and scalability to fulfill the increasing requirements of present day optical transport networks.

What Segments Are Covered In The Disaggregated Optical System Market Report?
The disaggregated optical system market covered in this report is segmented as

1) By Component: Optical Transponders, Optical Line Systems, Optical Switches, Software, Other Components
2) By Data Rate: 100 Gigabits Per Second (100G) And Below, 200 Gigabits Per Second (200G), 400 Gigabits Per Second (400G), 800 Gigabits Per Second (800G) And Above
3) By Application: Data Centers, Telecommunication, Enterprises, Cloud Providers, Other Applications

Subsegments:
1) By Optical Transponders: Coherent Transponders, Non-coherent Transponders, Pluggable Transponders, Embedded Transponders
2) By Optical Line Systems: Optical Amplifiers, Reconfigurable Optical Add-Drop Multiplexers (ROADM), Multiplexers (MUX), Demultiplexers (DEMUX), Optical Supervisory Channel (OSC) Equipment
3) By Optical Switches: Wavelength Selective Switches (WSS), Optical Cross-Connects (OXC), Packet Optical Switches
4) By Software: Network Management Software (NMS), Software-Defined Networking (SDN) Controllers, Analytics And Monitoring Software
5) By Other Components: Optical Receivers, Optical Couplers And Splitters, Dispersion Compensation Modules (DCM), Fiber Bragg Gratings

View the full disaggregated optical system market report:
https://www.thebusinessresearchcompany.com/report/disaggregated-optical-system-global-market-report

Which Region Is Expected To Lead The Disaggregated Optical System Market By 2025?
In 2024, the most significant region in the disaggregated optical system market was North America. However, Asia-Pacific is predicted to have the quickest growth rate over the forecast period. The regions evaluated in this report encompass Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

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