Coherent optical equipment stands as a cornerstone technology underpinning the rapid expansion and modernization of global communication networks. In 2025, the surge in demand for higher bandwidth, lower latency, and more reliable data transmission is propelling innovation in coherent optical systems. These systems enable long-distance, high-capacity data transfer with minimal signal degradation, critical for supporting the rise in cloud services, 5G rollouts, and edge computing infrastructure. As networks evolve to meet exponential data traffic, coherent optical equipment continues to play an indispensable role in guaranteeing seamless connectivity.
According to Straits Research, the global coherent optical equipment size was valued at USD 16.91 billion in 2024 and is projected to grow from USD 18.23 billion in 2025 to reach USD 33.24 billion by 2033, growing at a CAGR of 7.8% during the forecast period (2025–2033).
The latest updates focus on advancing transmission speeds, spectral efficiency, and energy usage reductions. Coherent optical devices leverage sophisticated modulation techniques and digital signal processing to optimize data throughput and extend the reach over existing fiber infrastructure. Integration of artificial intelligence (AI) and machine learning (ML) algorithms is enhancing network monitoring and predictive maintenance, allowing systems to self-optimize in real-time and reduce operational costs.
Emerging coherent pluggable transceivers, like Coherent’s 100G ZR QSFP28 digital coherent optics transceiver, are revolutionizing data center interconnects and metro networks by offering high-speed capability within compact, power-efficient form factors. Broad adoption of 400G, 600G, and 800G transmission standards is underway, supporting the growing bandwidth demands of hyperscalers, cloud providers, and telecom operators.
Key trends fueling growth include:
5G network expansion: The need for vast backhaul and fronthaul capacity to support 5G’s ultra-fast, low-latency connections is pushing coherent optics adoption at an unprecedented pace.
Cloud computing and data center proliferation: Hyperscalers invest heavily in coherent optical links to manage massive inter-data-center traffic and hybrid/multi-cloud architectures.
Edge computing: The decentralization of computing increases demand for resilient, high-capacity links between edge sites and core networks.
Energy efficiency and automation: AI-enabled control and power-optimized designs are enhancing operational efficiencies, reducing carbon footprints of network infrastructures.
Acacia Communications, Ciena Corporation, Cisco Systems, Infinera Corporation, Lumentum Holdings: These leaders emphasize advanced device design, deployments in cloud data centers, and partnerships with major telecom carriers for next-gen optical infrastructure.
Adva Optical Networking: Innovations in edge-to-core coherent equipment supporting Europe’s fiber expansion initiatives and digital transformation projects drive regional growth.
Fujitsu, NEC: Pioneers in coherent transceiver technology and integrated optical networking solutions, addressing Asia-Pacific’s escalating connectivity needs.
Huawei Technologies, ZTE Corporation: Scale deployment of coherent optics driven by major 5G rollouts and domestic digital economy strategies.
Samsung Electronics: Investment in R&D and manufacturing of coherent components underpinning Korea’s smart city and telecom enhancements.
Nokia Corporation, Ericsson: Focus on 5G network support and intercontinental submarine link advancements enhancing Europe’s digital infrastructure.
In September 2024, Coherent announced the commercial launch of its 100G ZR QSFP28 digital coherent optics transceiver, a landmark product enhancing metro network connectivity and data center interconnect efficiency.
Nokia unveiled new coherent optics technology by early 2023 focusing on power efficiency improvements and scalability to 800G transmission standard, enabling operators to better handle escalating bandwidth demands.
Regionally, North America maintains leadership due to significant investments in 5G infrastructure, cloud data centers, and government digital initiatives, while Asia-Pacific offers the fastest growth driven by China, Japan, South Korea, and India.
European coherent optical equipment sales benefit from accelerated digital transformation programs and expanded 5G rollouts across key countries including Germany and the UK.
With data consumption, cloud adoption, and mobile connectivity poised to expand exponentially, coherent optical equipment remains indispensable in building future-proof networks. AI-led automation, enhanced device miniaturization, and modulation innovations will further boost capacity and reduce network operational costs. Ongoing collaborations between major telecom operators, data center providers, and equipment manufacturers are expected to accelerate rollout speeds and innovation cycles throughout the forecast period.
Coherent optical equipment is central to today’s and tomorrow’s global digital infrastructure, enabling fast, reliable data transmission essential for 5G, cloud computing, and edge applications. Leading providers in the U.S., Europe, and Asia drive technological innovation and capacity expansion amid surging data demands. The sector’s steady growth underscores its pivotal role in powering high-bandwidth, low-latency connectivity.