A new report from BCC (News - Alert) Research has its sights set extremely high for the cloud optical systems and componentry market. After estimating that the market was around 1 billion dollars last year, they projected a growth to 1.2 billion for this year, and an astonishing 3.1 billion five years from now in 2020. This represents a compound annual growth rate of 20.7 percent from now until 2020.

Why is the market expected to increase so dramatically? There are several factors. First and foremost, as the cloud becomes cheaper and more efficient, it becomes more accessible to smaller organizations that previously didn’t have the capital to deploy their own, smaller scale cloud system. Now, as the cost of implementing a system has begun to drop and the systems themselves have become better, a cloud computing system has become more cost effective for smaller businesses. This opens up a large amount of potential groups who would make use of a cloud computing system, dramatically growing the market.

Another factor is the increase of applications that are cloud-compatible. There are simply more possibilities in the cloud now, and its capabilities are growing. This increased functionality makes a cloud based system even more attractive to business owners, again attracting more customers and increasing the size of the market. As more and more organizations begin to take their work to the cloud, the demand for the optical systems and componentry will rise.

“Optical systems and components are integral parts of the Cloud computing system. With the gradual advent of Cloud computing systems, the usage of the optical components has increased rapidly in the past few years,” says BCC Research analyst Sinha G. Gaurav. In short, the increased demand for cloud services means that there will be an equally increasing demand for its components. This BCC Research study reveals an extremely bright future for cloud based services and components.