Fiber Optics Market Overview
As per the statistical reports from Organization for Economic Cooperation and Development (OECD), the fiber optics technology used to harness fixed broadband connections reached 95.6 million unit subscription globally in FY2017. This was 23.4% of the total market share for accessing the Internet via the fiber optics. According to IndustryARC market research report, the global fiber optics market size was around $3.1 billion to $3.4 billion in 2018, and its value is increasing rapidly at a positive CAGR of 11% to 13% through the forecast period of 2019 to 2025. The analyst of the report depicts the Asia-Pacific region as the most lucrative fiber optics marketplace. The APAC market is expanding at an extra-ordinary CAGR of 26% to 29% through to 2025. Fiber optics has a flooding number of applications, but the key application of fiber optics lies in the engineering sector, wherein the demand is increasing at a CAGR of 14% to 15% during the forecast period of 2019 to 2025.
Fiber Optics Market Outlook
Optic fiber receives a great demand from the telecom industry, community access television (CATV), military, utility, electromagnetic interference, and connected devices. Furthermore, it is mostly used to establish fiber optic communications. Some specific fibers are also used for various other operations, which are known as fiber lasers and fiber optic sensors. Fibers that are designed to support multiple propagation parts or transverse modes are called multi-mode fibers. While those which support an only single mode are known as single mode fiber. With such an influx of applications and demands, the fiber-optics market is expected to witness significant growth.
Fiber Optics Market Growth Drivers
- Advancement in technology has reached a point where the electronic devices are capable of communicating via the Internet, which is, the Internet of Things. The concept of IoT is prolifirating at a rapid pace all over the world and the only way in which it can be pursued is through data integration. To adopt IoT readily a clutter-free internet will be required, and the fiber optics is one of the most legitimate option to achieve it.
- Cloud computing has transformed into a necessity for enterprises, with one in three enterprises already moving their business on the cloud for the sheer accessibility benefits it offers bounded with security features. These commercial places are bolstering the fiber optics market as they widely use this technology to provide Internet access to their various access points. Without adequate internet bandwidth, these businesses are expected to crash. So to continue thriving in the business, these companies are extensively employing the fiber-optics for uninterrupted internet access.
Fiber Optics Market Trends
Streaming entertainment services are trending, and the zest for media firms is now to reach out to their customers directly rather than a third party. Fiber optics plays an important role in streaming services and the $85 billion mega-acquisition of Time Warner by AT&T after two-year long legal battle is a clear indication of how major fiber optics companies foreseeing the future. AT&T’s satellites, wireless network, and web of fiber optic cable will now be delivering entertainment from Time Warner assets including Turner television channels, HBO, and Warner Bros production studios.
Fiber Optics Market Challenges
TFiber Optics Market Challengeshe most basic challenge faced by the fiber-optic cable manufacturers is the introduction of wireless technology to exploit the internet. The advancement in technologies has optimized the speed and features in the wireless technology. A significant market shift is visible towards the wireless systems as wireless local area network (WLAN) has become the most favorable choice of accessing the Internet in domestic as well as commercial sectors.
Key Players in the Fiber Optics Market
One of the leading players, Fujikura Ltd., surpassed the market revenue of $6 billion in FY2018, resonating the prosperity of the key market players. The Japanese company collected 37% of the sales at home, 24% in other Asian countries, and 19% in the US. Some of the other key player dominating the market are Finisar Corporation, Optical Cable Corporation, Ofs Fitel, Llc , Infinera Corporation, Corning INC, Molex Incorporated, TE Connectivity, Pepperl+Fuchs, and Sumitomo Electric Industries, Ltd.
Fiber-Optics Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the fiber optics market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of fiber optics market, and their specific applications in different types of vehicles.
Fiber Optics Market Report: Industry Coverage
The fiber-optics market report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:
- North America: The U.S., Canada, Mexico
- South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
- Europe: The U.K., Germany, Italy, France, The Netherlands, Belgium, Spain, Denmark
- APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
- Midadle East and Africa: Israel, South Africa, Saudi Arabia