Fiber Optic Market is forecast to reach $7.85 billion by 2025, growing at a CAGR 7.6% from 2020 to 2025. The technology is one of the latest technologies that has developed over time, owing to comprehensive studies performed through thorough research and development by researchers and scientists around the world. The technology has proven to be a blessing across a wide range of applications and over time has increased the number of advances. The worldwide demand for the internet, coupled with the growing need for FTTx, is the major factor driving the growth of the fiber optics sector. Increasing demand for communication at high bandwidth is boosting market growth. For example, these systems are used with ease to transmit data, speech, and images that range from a few meters to a few km. Telecommunications and IT have a wide variety of uses as primary industries. The development of fiber-rich networks has increased the market for these cables tremendously. Additionally, advances in technology in the telecoms sector have increased the deployment of broadband network architectures. Fiber to the Home (FTTH), Fiber to the Building (FTTB), Fiber to the Cabinet (FTTC), and Fiber to the Premise (FTTP) are some prominent broadband networking architectures that require large-scale fiber optic network deployment, driving fiber optic cable demand. Growing opportunities in the healthcare sector such as endoscopic imaging applications and applications for biomedical sensing are boosting the growth of fiber optics market.
The report: “Fiber Optic Market – Forecast (2020-2025)”, by IndustryARC covers an in-depth analysis of the following segments of Fiber Optic Market.
By Cable Type: Single-mode Cable, Multi-mode Cable
By Type: LC, SC, ST, FC/PC/APC, Special Designs and Others
By Fiber Type: Glass, Plastic
By End-User Industry: IT and Telecom, BFSI, Consumer Electronics, Computers and Peripherals, Enterprise, Transportation Defense and Aerospace, Healthcare, Manufacturing, Other End-user Verticals
By Geography: North America, South America, Europe, APAC, ROW
- Global internet demand, coupled with the growing need for FTTx, is the major factor driving the growth of the fiber optics market.
- Growing opportunities in the healthcare sector such as endoscopic imaging applications and applications for biomedical sensing are boosting the growth of fiber optics market.
- Based on the core materials used in POF cable construction, POF varies from its single- and multimode counterparts. Though single- and multimode fiber optics have a glass core, the polymer core of the POF cables. This offers a dynamic portfolio of applications, with cost savings.
- Given its scalability, safety and ability to handle the large volume of traffic in the backhaul, fiber optics cable is the preferred option for 5 G. That is expected to generate a huge market opportunity for IT and the fiber optic cable market in return.
- In the APAC region, the steady rise in the use of smartphones and Internet facilities leads to the adoption of optical fiber cables for telecommunication.
- The growing importance of cloud computing, data transfer and storage, and IoT drives internet usage and increasing internet use will drive the fiber optics market.
By Fiber Type- Segment Analysis
During the forecast period the Plastic segment is expected to grow at a CAGR of 8.2%. The plastic optic fiber market is expected to witness immense growth during the forecast period as the base material used for plastic optic fiber production differs from the base material used for multimode and single-mode optic fiber production. Based on the core materials used in POF cable construction POF differs from its single and multimode counterparts. While single- and multimode fiber optics have a core of glass, POF cables have a core of polymer. This offers a complex framework and permits cost savings. This is expected to boost the market growth of fiber type optic.
By End-User Industry - Segment Analysis
The IT & Telecom is expected to grow at a higher CAGR of 9.4% during the forecast period. Fiber optics is a significant building block for telecommunications networks. With the Internet, electronic commerce, computer networks, multimedia, voice, data, and video explosion of information traffic, the need for a transmission medium with bandwidth capabilities to handle such vast amounts of information is of paramount importance. Fiber optics, with a comparatively infinite bandwidth has proven to be the solution. In addition, 5 G, IoT, and Big Data rely heavily on the collection and transfer of data in real time. As fiber optics has unlimited potential for bandwidth, fiber optics cable is chosen to support these levels of bandwidth. Additionally, more small cells (or nodes) and mobile edge computing will be needed to eliminate network bottlenecks to achieve the expected performance levels for 5 G networks. Such small-cell deployments also make use of the millimeter wave spectrum by relying heavily on fiber cabled connections for the network's backhaul component. The 5 G rollout would directly add increased flexibility and reduced latency to networks. Fiber optics cable is the preferred option for 5 G due to its scalability, safety and ability to handle the large volume of traffic in the backhaul. In return, this is expected to create a huge market opportunity for IT and Telecom's fiber optic cable market.
By Geography - Segment Analysis
APAC is expected to dominate the global Fiber Optic market with a share of more than 46.5%. Two of the world's major economies dominate the Asia-Pacific region, i.e. India and as well as China. These regions are at the forefront of revenue growth due to technological advances and the large-scale adoption of IT and Telecommunications technology as well as the administrative sector. The increasing use of fiber optics in the medical sector is also catapulting growth across countries such as China, Japan and India. This propels the overall demand at a sizeable rate. The steady rise in the use of smartphones and Internet facilities in the region contributes to the adoption of telecommunications optical fiber cables. In addition, developed-nation governments, like China and Japan, are investing heavily in country-level security infrastructure. All of the above factors, in return, are expected to pave the way for new opportunities on the fiber optic cable market.
Drivers – Fiber Optic Market
- Increasing demand for internet
The internet is a massive, linked computer network. Fiber optics act as the internet's backbone; fiber optic cables are used as a medium for transmitting information from one point to another. According to the International Telecommunication Union (ITU), in 2018 51.2% of the world's population used the Internet. The growth rate of Internet users in 2018 was approximately 45%. Internet demand is also influenced by many other factors such as rise in the number of connected devices in households, an increase in demand for OTT video content and an increase in access to internet. The growing importance of cloud computing, data transfer and storage, and IoT drives internet usage and increasing internet use will drive the fiber optics market.
- Growing need for FTTx
FTTx is any broadband network architecture that uses fiber optics as an optical medium for transmitting information in a local telecommunications loop. FTTx is composed of FTTH, FTTP, FTTB, FTTN, and FTTC. Because of its ability to accommodate higher bandwidth at greater speeds, Fiber has evolved as an essential component for network evolution. Communication applications are increasingly growing and each of them has features requiring higher bandwidth and speed. Video technology, OTT (over-the-top content), and IoT are some of those advanced applications. The increased use of these applications means that more network architectures such as FTTH and FTTB are needed. Along with the proliferation of connected devices, the next generation of high-bandwidth applications would need faster and higher bandwidth networks, such as FTTH, FTTN, and FTTC, which use optical fiber cable for data transmission. In turn, this growth in the FTTx market will drive the fiber optics market.
Challenges – Fiber Optic Market
- Wireless communication systems
Wireless communication networks relay information over a microwave radio spectrum from one point to another. The knowledge is beamed down to the receiving dishes from one central location. The most commonly used techniques are radio frequency (RF) and fiber space optics (FSO) for wireless communication. The advantage of wireless communication over fiber optics usage is that the installation requires less capital. Another significant advantage of RF and FSO is their non-interference with each other. Therefore the two systems can be used together in any application to improve performance. Hybrid systems are used in many application areas, where both technologies compensate for the limitations of weather conditions and distance. Wireless communication systems are thus gaining momentum over fiber optics, especially in applications that require a higher rate of data transfer and this is anticipated to hinder the market growth of Fiber Optic.
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in Fiber Optic Market. Fiber Optic Market is expected to be dominated by major companies such as Optical Cable Corporation, Sterlite Technologies, Fujikura Limited, Finolex Cable Limited, Ofs Fitel, Llc, Prysmian Spa, Infinera Corporation, Corning INC, Birla Furukawa Fibre Optics.
- In March 2018, Corning Inc launched its latest optical fiber cable product, Rocket Ribbon.
- In April 2020, Prysmian Group announces world’s first 180µm fibre cable for FTTx and 5G networks.