PUBLISHER: The Business Research Company | PRODUCT CODE: 1873013
PUBLISHER: The Business Research Company | PRODUCT CODE: 1873013
Optical orthogonal frequency division multiplexing (OFDM) communication is a high-speed optical transmission technique that sends data by splitting a single optical carrier into multiple orthogonal subcarriers, with each subcarrier simultaneously carrying a portion of the data. This approach enables efficient use of the optical spectrum, enhances resistance to signal impairments such as chromatic dispersion and multipath interference, and increases data throughput in optical fiber or free-space optical links.
The primary components of optical orthogonal frequency division multiplexing (OFDM) communication include transceivers, modulators, demodulators, multiplexers, and related devices. Transceivers are devices that both transmit and receive optical signals, allowing high-speed multi-channel data transmission using OFDM methods to improve spectral efficiency and signal reliability. These systems employ technologies such as direct detection and coherent detection, and find broad applications in data centers, long-haul communication, metro networks, access networks, and more. Major end-users include telecommunications, information technology and data centers, enterprises, government organizations, and others.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.
The optical orthogonal frequency division multiplexing (OFDM) communication market research report is one of a series of new reports from The Business Research Company that provides optical orthogonal frequency division multiplexing (OFDM) communication market statistics, including the optical orthogonal frequency division multiplexing (OFDM) communication industry global market size, regional shares, competitors with the optical orthogonal frequency division multiplexing (OFDM) communication market share, detailed optical orthogonal frequency division multiplexing (OFDM) communication market segments, market trends, and opportunities, and any further data you may need to thrive in the optical orthogonal frequency division multiplexing (OFDM) communication industry. This optical orthogonal frequency division multiplexing (OFDM) communication market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The optical orthogonal frequency division multiplexing (OFDM) communication market size has grown rapidly in recent years. It will grow from $4.21 billion in 2024 to $4.91 billion in 2025 at a compound annual growth rate (CAGR) of 16.7%. The growth during the historic period is driven by rising demand for high-speed data transmission, increased adoption of fiber optic networks, expanding internet traffic, development of telecommunication infrastructure, and the growing need for bandwidth optimization.
The optical orthogonal frequency division multiplexing (OFDM) communication market size is expected to see rapid growth in the next few years. It will grow to $9.00 billion in 2029 at a compound annual growth rate (CAGR) of 16.4%. The growth projected for the forecast period is driven by the increasing adoption of coherent detection systems, wider implementation of data center interconnects, the rising demand for energy-efficient communication, expansion of cloud-based services, and the deployment of 5G backhaul networks. Key trends during the forecast period include advancements in optical modulators, development of photonic integrated circuits, increased investment in research and development, innovations in coherent receivers, and enhanced optical amplification techniques.
The expansion of 5G networks is expected to drive the growth of the optical orthogonal frequency division multiplexing (OFDM) communication market. 5G refers to the fifth generation of wireless cellular technology, designed to offer faster data speeds, reduced latency, and better connectivity for numerous devices simultaneously. The growth of 5G networks is primarily driven by the sharp rise in mobile data consumption, fueled by the widespread use of video streaming, cloud gaming, and mobile applications that require higher speeds and bandwidth. Optical OFDM is an advanced modulation technique that enhances the capacity and spectral efficiency of fiber-optic networks, enabling high-speed data transmission over existing infrastructure. For example, in September 2023, 5G Americas, a U.S.-based industry trade organization, reported that 5G penetration in North America reached 40% by the first half of 2023, showing a growth rate of 25.5%. Forecasts predict that 5G connections in the region will rise to around 669 million by 2028. As a result, the continued expansion of 5G networks is expected to accelerate the growth of the optical orthogonal frequency division multiplexing (OFDM) communication market.
The increasing adoption of cloud computing is anticipated to drive the growth of the optical orthogonal frequency division multiplexing (OFDM) communication market. Cloud computing delivers services such as servers, storage, databases, and software over the internet, offering on-demand access to resources without the need for physical infrastructure. The adoption of cloud computing is growing due to its ability to provide scalable and cost-effective IT resources. Optical OFDM improves spectral efficiency and provides resilience to dispersion in fiber, making it ideal for high-speed interconnects in cloud networks. For example, in December 2023, Eurostat, the Luxembourg-based statistical office, reported that 45.2% of enterprises in the EU were using cloud computing services in 2023, marking a 4.2 percentage point increase from 2021. Consequently, the growing adoption of cloud computing is contributing to the growth of the optical orthogonal frequency division multiplexing (OFDM) communication market.
In February 2025, Nokia Corporation, a Finland-based telecommunications and network infrastructure provider, acquired Infinera Corporation for an undisclosed amount. This acquisition strengthens Nokia's position in optical networks, aiming to accelerate product innovation and enhance its ability to support network operators in addressing the needs of the AI era. Infinera Corporation, a U.S.-based company, provides advanced optical networking equipment and software solutions for high-capacity telecommunications networks.
Major players in the optical orthogonal frequency division multiplexing (ofdm) communication market are Huawei Technologies Co. Ltd., Cisco Systems Inc., Mitsubishi Electric Corporation, Broadcom Inc., Sumitomo Electric Industries Ltd., Telefonaktiebolaget LM Ericsson (publ), Nokia Corporation, ZTE Corporation, Arista Networks Inc., Fujikura Ltd., Lumentum Holdings Inc., Accelink Technologies Co. Ltd., POET Technologies Inc., ADTRAN Inc., Viavi Solutions Inc., Tejas Networks Limited, AvicenaTech Inc., Optiwave Systems Inc., Ranovus Inc., FICER Technology Co. Ltd.
North America was the largest region in the optical orthogonal frequency division multiplexing (OFDM) communication market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the optical orthogonal frequency division multiplexing (OFDM) communication market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The optical orthogonal frequency division multiplexing (OFDM) communication market consists of sales of optical amplifiers, optical filters, wavelength selective switches, coherent receivers and photonic integrated circuits. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Optical Orthogonal Frequency Division Multiplexing (OFDM) Communication Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on optical orthogonal frequency division multiplexing (ofdm) communication market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for optical orthogonal frequency division multiplexing (ofdm) communication ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The optical orthogonal frequency division multiplexing (ofdm) communication market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.