Fusion Splicer Market - Forecast(2024 - 2030)

The global Fusion Splicer Market is projected to reach $902.3 million by 2026, growing at CAGR 5.4% during the forecast period 2021-2026. With the rise in adoption of cloud-based infrastructure, the demand for high speed data connection for telephone and video-conferencing process increases, resulting in demand for optical fibers which boost the growth of the Fusion splicer market during the forecast period. Fusion Splicer uses multiple cameras for fiber inspection to ensure minimum loss. Additionally paradigm shift towards fusion splicing from mechanical splicing is also set to be one of the major growth factors assisting the market growth over 2021-2026. Moreover, increase in government funding for fiber optic network also accelerate the market growth. However, high costs of fusion splicer impede the market growth.

The report based on: “Fusion Splicer Market Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Fusion Splicer Market Industry Outlook. 

By Type: Field Splicing, Factory Splicing, Laboratory Splicing.

By Offering: Hardware, Software & Services.

By Alignment: Core, Cladding.

By Application: Communication, Safety & Security, Surveillance, Others.

By Industry Vertical: Telecommunication, Residential, Healthacare, Aerospace and Defence, Automotive, Others.

By Geography: North America (U.S., Canada and Mexico); South America (Brazil, Argentina, Rest of Americas); Europe (U.K., Germany, Italy, France, Rest of Europe); APAC (China, Japan, South Korea, India, Rest of APAC); RoW (Middle East & Africa)

Based on alignment segmentation, Cladding Alignment held the highest Fusion Splicer Market share of around 66.8% in the global Fusion Splicer market in 2020, owing to its lower cost. Cladding alignment based fusion splicer has features such as Active V-groove splicing, user friendly, easy maintenance and faster alignment which has influenced to the market growth in long run. In June 2021, Sumitomo Electric Industries, Ltd. Announced to launch world's first AI programmed next generation active clad alignment fusion splicer, i.e. T-502S series. It is designed to offer improved performance, reliability, and user experience.

Based on industry vertical segmentation, Telecommunications held the highest Fusion Splicer Market share of around 28.5% in the global Fusion Splicer market in 2020, owing to installation of fiber-optic aerial cables. Owing to its benefits such as higher bandwidth and lower attenuation, Fiber optics is considered as major building block in IT& Telecommunication for gigabit transmission. Additionally, Telecommunication companies adopting various growth strategies such as partnership and investment for long haul single mode network, thus creating demand for fusion splicer. In June 2020, Sumitomo Electric Industries limited signed a long term fusion splicer supply agreement with TATA Communications Transformation Services Ltd (TCTS), an Indian based communication service company. Furthermore, investment in rolling out 5G network will create demand for optical fiber, which further influences the growth of Fusion Splicer market. In June 2021, Bharti Airtel and Tata Group collaborated to roll out 5G network in India by 2022. Such developments can influence the market growth of Fusion Splicer in the long run.

APAC held the highest Fusion Splicer Market share of around 34.2% in the global Fusion Splicer Market in 2020 and is further set to grow at a significant rate during the forecast period 2021-2026. The factors such as increasing cloud computing, growing internet penetration and rise in data centers have been contributing to the market growth across the region in long run. Moreover, investment in FTTH will create opportunities for the Fusion Splicer Market according to report by FTTH Council Europe 2019; Asian countries led the FTTH-FTTB with UAE on top with 95.7% highest fiber penetration. Moreover, market players in this region are frequently adopting various growth strategies such as investments, acquisitions, launching and partnerships to deploy fiber optic network infrastructure in region, thereby will boost the demand for fusion splicer in future. In February 2019, Furukawa Electrical Co Ltd announced the launch of FITEL S185 series of fusion splicer. This series is specially designed for combination of optical fiber used in optical sensor and fiber lasers.

Growing government investments for developing fiber optic network is set to be one of the factors that can drive the market forward during the forecast period 2021-2026. The governments have introduced various initiatives to access to broadband services across the country, especially in rural and remote areas. For instance in December 2019, Government of India launched National Broadband Mission to ensure broadband access in all villages by 2022 and allocated $94.5bn in coming years. The mission also involves setting up of incremental 30 lakh route km of Optical Fiber Cable, thus will create demand for Fusion Splicer. Moreover, market players are frequently adopting various growth strategies such as investments, acquisitions and partnerships to deploy fiber optic network infrastructure in region, thereby will boost the demand for fusion splicer in future. In February 2021, KKR, a leading investment firm, announced it has partnered with Telefónica, a global telecommunications company, to set up Chile’s first open access wholesale fiber optics firm to accelerate broadband access across Chile. Similarly, In September 2020, Bezeq Israel Telecom, an Israeli Company, announced to invest billions of shekels to increase the deployment of a fiber optics network across whole Israel, to ensure citizens access to ultra-fast broadband in future. Such developments can influence the market growth of Fusion Splicer in the long run.

Rise in number of Data Centers globally at 9.2% CAGR between 2021-2026 is set to be one of the factors that can drive the market forward. Data centers need reliable and high bandwidth parts that support to preserve the value of network’s physical infrastructure. Presently, data centers are switching to optical fiber-based networks for extending bandwidth, which accelerates the adoption of fusion splicer globally. The factors such as increasing cloud computing, growing internet penetration and rising investment by foreign players have contributed for the rising data centers in the world. With technological advancement, there is dramatic rise in amount of data which results in growth of data centers. To manage vast amount of data, optical fibers are being used by data centers which further drive the growth of Fusion Splicer Market. Moreover, investment in establishing data centers will create opportunities for the growth of the market. For instance in February 2021, Amazon India decided to invest $1.6 Billion in construction of two data centers in Hyderabad. Similarly In June 2020, Oracle Corporation planned an investment on construction of second data center in Hyderabad. Such investments can influence the market growth of Fusion Splicer in the long run.

Though Fusion Splicer offer huge advantages such light weight, compact and operate on a battery but high cost associated with fusion splicer is the major factor that can hinder the growth of the market. The start-up cost for fusion slicing is apparently high, so customers can’t afford the budget, thus resulting in demand for pre-terminated connectors. Even the cheapest slicer cost around $1900 approximately which is much more expensive than crimp kit. Fusion Splicer requires continuous power supply is the other factor that impedes the growth of the market. Owing to the above mentioned factors, adoption of fusion splicer will be significantly impacted, thus hampering its market growth.

Partnership, Product launches, Acquisitions, Collaboration, and R&D activities are key strategies adopted by players in the Fusion Splicer Market. The Fusion Splicer Market top 10 companies include: