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Global Fiber Optics Market is Projected to Reach $9.1 Billion by 2025
April 23, 2019 | Business WireEstimated reading time: 2 minutes
The global fiber optics market size is expected to reach $9.1 billion by 2025, expanding at a CAGR of 4.6% over the forecast period. Rising government funding to develop secure infrastructures is anticipated to drive the adoption.
Rising terrorism is appealing government authorities and defense services of different countries to take initiatives and stringent steps to curb down such occurrences. This has led to the evolution and adoption of technologies such as body cams, wearables, and other responders that keep the security personnel connected, irrespective of user location and user fiber optics for communications. The concept of internet of everything (IoE) is attracting security sector owing to increasing awareness regarding effectiveness and efficiency of the technology that aids in curbing national issues, such as riots, massacres, killings, and other criminal offenses. Need for high-speed internet, which is capable of efficiently transmitting the data, is anticipated to grow with increasing demand for IoE.
Growth prospects for fiber optics technology in telecommunications sector appears to be promising due to its growing adoption in communication and data transmission services. Fiber optics enable high-speed data transfer services in both small and long-range communications. It also serves as a medium to cope with increasing bandwidth requirements associated with broadband services, network operators, and broadband connection providers. Rising implementation of fiber optic components in distribution cables, trunk cable forms, high density interconnect cables, and standard patch cords is expected to enhance the demand from telecom sector.
Furthermore, high initial acquisition and installation costs are hindering growth of the fiber optics market. An optical fiber system consists of a variety of components such as optical cables, transmitters, and receivers. Installation of the entire system is a labor-intensive process, especially installation of the network for underground and undersea connections is one of costliest and tedious procedures. Fiber optics, with their advancements, have overtaken the copper-cable transmission. However, installation process to deploy the optical networks, being an extremely high-cost part, is expected to hamper the market growth.
Further key findings from the study suggest:
- Governments of developed countries such as U.S, U.K, Germany, China, and Japan are heavily investing in security infrastructures at domestic levels. This is eventually necessitating funding for technologies, majorly across the fiber optics that would enhance the telecommunication sector infrastructure with better security measures. Therefore, the government funding in infrastructure is driving the market.
- Plastic optical fiber segment is projected to expand at a CAGR of 7.0% over the forecast period. POF differs from its single and multimode counterparts on the basis of the core materials used in POF cable construction. While single and multimode fiber optics have a glass core, POF cables have a polymer core. This offers a dynamic application portfolio, along with cost saving.
- Market participants are diversifying their product portfolio through their innovative offerings. In March 2018, Corning, Inc. launched a new product Corning TXF Optical Fiber that would enable high data-rate transmission over longer spans and extended reach for improved network flexibility and lower network cost.
- Corning Incorporated, Optical Cable Corporation (OCC), Sterlite Technologies Limited, OFS Fitel, LLC, Prysmian Group, AFL, Birla Furukawa Fiber Optics Limited, Finolex Cables Limited, and Yangtze Optical Fiber and Cable Co, Ltd. (YOFC) among others are the key players in the fiber optics market.
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