Northbrook, IL 60062 -- (SBWIRE) -- 08/08/2023 -- The global fiber optics industry size was valued at USD 4.9 billion in 2022 and is projected to reach USD 8.2 billion by 2027, growing at a CAGR 10.9% from 2022 to 2027.
The growth of this market is driven by factors such as growing internet penetration and data traffic, rising number of data center facilities worldwide, and mounting demand for high bandwidth.
The world has been witnessing an exponential rise in the number of internet users. With the explosion of internet use, social media services, online entertainment, Voice over IP (VoIP), and mobile payments have become common. Therefore, traffic associated with data services, video streaming, online gaming, and the internet have grown tremendously with the proliferation of tablets, laptops, smartphones, and other wireless devices.
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Glass segment is expected to dominate fiber optics market during the forecast period
Glass segment is expected to dominate fiber optics market during the forecast period. The segment is also expected to grow at a higher rate during the forecast period. Glass optical fibers have a larger numerical aperture than plastic, allowing more light rays into the system.
They can transfer a much wider spectrum, ranging from 200–2200nm. The high performance of glass fiber optics in challenging environments with extreme temperatures and corrosive chemicals, and their ability to transmit both visible and infrared light are major factors for the growth of this segment.
Single-mode segment is expected to hold high market share from 2022 to 2027
Single-mode segment is expected to hold high market share during the forecast period. A single-mode fiber optic cable has a smaller core of about 9 µm in diameter compared to a multi-mode fiber optic cable with a core diameter of 50 µm or above.
Single-mode fiber optic cables can carry signals at a much greater speed and over longer distances compared to multi-mode fibers. The dominance of single-mode fiber optics cable is mainly due to their increased demand from long-distance transmission applications. Single-mode fibers are typically used by telecom companies for long-distance and high-bandwidth requirements. They are also used by Cable Antenna Television (CATV) companies, and colleges and universities.
Aerial segment will hold for majority of market share in fiber optics market during the forecast period
Aerial segment is expected to dominate deployment segment in fiber optics market during the forecast period. The rising penetration of Fiber to the Home (FTTH) services is expected to increase aerial fiber deployments.
Aerial deployment helps to achieve faster installations of fiber optics compared to underground deployment. It also requires low repair and maintenance costs, which will further support the segment growth. Telecom operators across the world are opting aerial fiber optic deployment due to advantages such as cost efficiency, high speed deployment rate, and flexibility. For instance, in January 2022, Orange S.A. (France), a French telecom operator, announced that it has deployed optical fiber to approximately 63% of the 29 million premises eligible for FTTH in France. This deployment, majorly aerial, accounted for a 20% increase in the number of premises in one year.
Market for communication application segment to hold largest share throughout the forecast period
The communication application segment held the largest share of the fiber optics market in 2021 and is also expected to hold the largest share during the forecast period. The high market share is majorly attributed to the increasing adoption of fiber optics from telecom sector.
In telecom sector, fiber optics is used for various purposes, such as point-to-point communication, entertainment, content delivery network, access to Internet-enabled services, critical communication, and news & infotainment. Factors such as increasing Internet user base, low-cost services offered by service providers, availability of inexpensive communication devices, and growing number of subscribers for various wireless as well as fixed-point communication devices are responsible for its growth.
Fiber optics market in Asia Pacific estimated to grow at the fastest rate during the forecast period
Asia Pacific is expected to hold the largest share of the fiber optics market during the forecast period. The high market share is credited to the increasing government initiatives to support fiber optics deployment across the region.
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North America's Booming Fiber Optics Industry: Driving Demand and Growth
North America's Fiber Optics Industry is one of the world's leading markets, due to growing demand for high-speed internet and data transmission. The United States is a largest customer of fibre optic technology, with many telecommunications and technology companies investing in fibre optic networks. The increasing adoption for fibre optics in various end-user industries such as healthcare, defence, and others is also propelling the region's industry forward. The rise of smart cities, in addition to the increasing adoption of IoT technology, is going to drive up demand for fibre optics in North America. Furthermore, government initiatives to improve telecommunications infrastructure, as well as rising demand for data centers computing, are spurring growth in the industry.