The Global Fiber Optics Market size was valued at USD 5.2 billion in 2021 and is projected to reach USD 10.1 billion by 2028, growing at a CAGR of 11.02% during the forecast period.
Market Overview
Growing demand for internet services as a result of an increase in internet users, particularly in developing nations, has resulted in a demand for high bandwidth connectivity and data transmission services, which in turn has increased demand for fiber optics because it is essential for successfully transmitting data, voice messages, and images over long distances. As a result, one of the key reasons anticipated to propel the Fiber Optics Market is the desire for high-bandwidth communication. In addition, developments like the development of 5G and the increasing demand for FTTx are anticipated to open up the attractive potential for the Fiber Optics Market.
COVID-19 Impact Analysis
In the first half of 2020, the COVID-19 pandemic significantly affected the global supply chain for raw materials and components. The pandemic also forced the forced closure of fiber optics manufacturing facilities, which to some part slowed the market’s expansion. However, some market participants were able to run their manufacturing plants during COVID-19 with a limited capacity. In April 2020, for instance, Sterlite Technologies Limited (India) began manufacturing during the pandemic at 65% of its global operations. The company started operating its factories again in China, India, and Italy. COVID-19 has caused a rise in interest in work-from-home jobs and online learning programs. This sharp rise has accelerated internet communication and the rollout of 5G infrastructure across the globe. In order to address the growing demand for high bandwidth and reliability, telecom operators across the globe will begin making significant investments in the construction of 5G communication infrastructure in 2022. The foundation of the 5G communication infrastructure is fiber optics.
Market Segmentation:
The Global Fiber Optics Market is segmented on the basis of Fiber Type (Glass and Plastic), Cable Type (Single-mode and Multi-mode), Deployment (Underground, Underwater, and Aerial), and Application (Communication and Non-Communication).
By fiber type, the Glass segment is predicted to witness a fiber optics market during the forecast period
The glass segment is expected to hold the largest share in the fiber optics market during the forecast period. The numerical aperture of glass optical fibers is greater than that of plastic, allowing light to enter the system. They are capable of transmitting over a significantly wider range, from 200 to 2200 nm. The ability of glass fiber optics to transmit both visible and infrared light and their great performance in harsh settings with extreme temperatures and corrosive chemicals are key drivers for the growth of this market.
By application, the communication application segment holds the largest share
The communication application segment accounted for the largest share of the fiber optics market in 2021 and is also expected to continue its dominance during the forecast period. The significant market share is mostly attributed to the telecom sector’s expanding use of fiber optics. In the telecom sector, fiber optics are employed for a wide range of purposes, including point-to-point communication, point-to-point entertainment, content delivery networks, access to Internet-enabled services, crucial communication, and news and infotainment. Numerous variables, including an increase in Internet users, low-cost services offered by service providers, an increase in subscribers for various fixed-point and wireless communication devices, and the availability of affordable communication equipment, all contribute to its expansion.
Market Dynamics:
Drivers:
Growing Internet Penetration and Data Traffic
Globally, the number of internet users has been rising rapidly. Thanks to the increase in internet usage, social media services, online entertainment, Voice over IP (VoIP), and mobile payments have all become more popular. The amount of traffic for data services, video streaming, online gaming, and the internet has substantially expanded as a result of the widespread usage of tablets, laptops, smartphones, and other wireless devices. Wireless traffic utilizes a fiber optic wireline network to reach its destination. Therefore, the development of mobile communications can be largely attributed to landline networks like front haul and back haul. Globally, a large amount of data is generated and reproduced due to the increase in multimedia consumption. The market will expand as a result of the increased deployment of new fiber optic cables and subsystems due to the increasing amount of data being created.
Restraints: Increasing Adoption of Wireless Communication Systems Compared to Wired Systems
The growing preference for wireless communication options over cable-based ones is one of the major obstacles facing makers of fiber optics. A microwave radio spectrum is utilized in wireless communications systems to transmit data from one location to another. The receiving devices, antenna systems, and dishes all receive the data from one central location. Two key technologies for wireless communication are radio frequency (RF) and fiber space optics (FSO). Both RF and FSO technologies are less expensive to install and offer no interference with one another. These methods increase the effectiveness of communication applications relative to fiber optics technology.
Regional Analysis:
The Asia Pacific is expected to account for the largest market size during the forecast period
The Asia Pacific is expected to witness the largest share of the fiber optics market during the forecast period. The significant market share is attributed to the growing number of regional government efforts to boost fiber optic deployment. For instance, the Bharat Net internet network is predicted to be operational by 2025, according to a statement made by the Indian Finance Ministry in February 2022. The Bharat Net broadband network is the government’s ambitious plan to bring internet access to more than 361,000 villages in 16 states. According to this agreement, the optical cable will be laid through a public-private collaboration (PPP). The telecom industry is one of the major application segments for the Asia Pacific fiber optics market. According to this agreement, a public-private partnership will be used to lay the optical cable (PPP). One of the key application sectors for the Asia Pacific fiber optics market is telecom.
Key Market Players and Competitive Landscape
Key players in the fiber optics market are Corning Incorporated (US), Prysmian Group (Italy), Sumitomo Electric Industries, Ltd. (Japan), Yangtze Optical Fibre and Cable Joint Stock Limited Company (China), Fujikura Ltd. (Japan), LEONI (Germany), LS Cable & System Ltd. (South Korea), Hengtong Group Co., Ltd. (China), Furukawa Electric Co. Ltd. (Japan), Optical Cable Corporation (US), Hitachi Cable America Inc. (US), Finolex Cables Ltd. (India), Sterlite Technologies Ltd. (India), FiberHome Telecommunication Technologies Co. Ltd. (China), and among others.
This report categorizes the global fiber optics market as follows,
Based on Fiber Type:
Based on Cable Type:
Based on Deployment:
- Underground
- Underwater
- Aerial
Based on Application:
- Communication
- Telecom
- Premises
- Utility
- CATV
- Military
- Industrial
- Others
- Non-communication
- Sensors
- Fiber Optic Lighting
