The global fiber optics market is estimated to reach USD 15.2 billion by 2030, at a CAGR of 7.1% from 2022 to 2030. It was USD 8.7 billion in 2022.
The growing demand for the Internet across the globe acts as one of the main factors pushing the demand of the fiber optics market. The upgrade in technology where electronic devices can communicate via the Internet and promote demand from the telecom initiative, electromagnetic interference, community access television (CATV), and military, utility, and interconnected devices accelerate the market growth. Adopting fiber optic cables to transmit signals with less loss and digital data transmission using optic fibers further impacts the market. Additionally, rapid urbanization and industrialization, the surge in investments, and the expansion of end-use industries and use in residential, commercial, and government positively affect the fiber optics market.
A fiber optic is an easygoing, transparent fiber created of extruded glass (silica) or plastic that can serve as a waveguide, or “light pipe,” to transfer light between the two ends of the fiber. A cylindrical dielectric waveguide sends light along its axis by total internal reflection. Fiber optics contain a transparent core covered by a transparent cladding material with a lower index of refraction, through which the light traverses by total internal reflection. This phenomenon drives the fiber to act as a waveguide.
The Internet is a global method of connected devices. Fiber optics serve as the backbone of the Internet; optical fiber cables are operated as the medium for transmitting data from one point to another. According to the International Telecommunication Union, 51.2% of the global population used the Internet in 2018. The growing prominence of cloud computing, data transfer and storage, and IoT is driving the use of the Internet.
IoT is an online integration of daily usage devices (mostly machine-to-machine). The increasing number of connected devices will result in a tremendous demand for higher bandwidth, which will, in turn, result in the growth of IoT. Datacenter colocation services that use fiber optics to transfer information will also help boost IoT’s growth. The demand for the Internet is also caused by several other elements, such as an upsurge in the number of interconnected devices in homes, growth in demand for OTT video content, and internet access. All these aspects have increased the number of internet users, which, in turn, has shown to the expanded use of optical fiber cables to transmit information over the Internet; this is pushing the fiber optics market.
Wireless communication systems convey information utilizing a microwave radio scope from one point to another. The information is beamed from one central location to the receiving dishes. Radiofrequency (RF) and fiber space optics (FSO) are the most commonly used techniques for wireless communication. The advantage of wireless communication over fiber optics is that it requires less capital for installation. Another major benefit of RF and FSO is their non-interference with each other. Therefore, we can use both systems to increase efficiency in any application. Hybrid systems are used in many application places, where both technologies compensate for the boundaries of weather conditions and distance. Therefore, wireless communication systems achieve momentum over fiber optics, especially in applications demanding a higher data transfer rate.
Fiber Optics Market Challenge the most fundamental challenge fiber-optic cable manufacturers face is introducing wireless technology to exploit the Internet. The improvement in technologies has optimized the speed and attributes of wireless technology. An effective market change is observable towards the wireless systems as wireless local area network (WLAN) has become the most challenging for accessing the Internet in domestic and commercial sectors.
Before the covid-19 period, fiber optics have catered to aggressive bandwidth demands over the last decade, mainly telecommunication companies, and have become the preferred transmission medium. Enhanced telecom and Broadband connectivity promoted tourism and employment generation in the Islands, giving an impetus to the economy and rising living standards before the pandemic.
During the covid-19 period, the pandemic has affected the global economy in three ways: directly impacting production and demand by completing supply chain and market disruption and its financial influence on firms and financial markets. The largest fiber optics supply chain concentration is Wuhan, home to Fiberhome, YOFC, and Accelink, among other companies, which comprise 25% of the global optical fiber production capacity. During the phase of the covid-19 pandemic, the demand was usually weak, but production usually continued at decreased levels.
After the covid-19 period, the demand for more data and better coverage worldwide is rising among consumers. The 5th generation wireless connection is anticipated to be the next leap in technology, as it can transfer more data while providing a more stable and reliable connection. The attributes of 5G, such as high data speeds and throughputs, are greatly influenced by these heavy-duty optical fiber networks that affect both the wireless side and wireline side of the infrastructure. Moreover, demanding network performance goals of 5G are heavily predicated on a massive availability of fiber connectivity. 5G is currently being tested in several markets and is expected to implement widespread after the pandemic.
Based on optical fiber type, the global fiber optics market is segmented into Glass and Plastics. Glass is the largest fiber optics due to its growing demand from different applications. The high implementation and effortless availability of glass fiber optics push the market. North America and Europe are mature markets. On the other hand, the markets in Asia-Pacific and, the Middle East & Africa are increasing because of the fast industrial growth in these regions.
Based on application, the global fiber optics market is segmented into Telecom, Premises, Utility, CATV, Military, Industrial, Sensors, Fiber Optic Lighting, Security and Metropolitan. The telecom (communication) segment is the largest global fiber optic market application. The rising number of internet users is a significant factor driving the growth of the fiber optics market in the communication segment. Moreover, the increase in telecom, premises, utility, and industrial sectors are propelling the growth of the fiber optic market.
Based on region, the global fiber optics market is segmented into North America, Europe, Asia-Pacific, South America and The Middle East & Africa. The Asia-Pacific fiber optics market is projected to be the largest during the forecast period. The growing industrialization and infrastructural development in the region have offered enormous opportunities for fiber optics across various applications in Asia-Pacific. Asia-Pacific major fiber optics markets are China, Japan, India, Australia, and South Korea. China is the central hub for manufacturing activities globally and is also one of the biggest internet users.
The companies include Corning incorporated, Prysmian Group, Finisar, AFL Global, Sumitomo Electric Industries, Ltd., LS Cable & System, Optical Cable Corporation, General Cable, Furukawa Electric Co. Ltd., Leoni AG and other prominent players in the global fiber optics market.
Key Stakeholders
| Report Attribute | Details |
|---|---|
| Revenue in 2021 | USD 4.9 billion |
| The revenue forecast in 2028 | USD 9.9 billion |
| Growth Rate | CAGR of 11.1 % from 2022 to 2028. |
| Historical data | 2017 – 2020 |
| Base Year | 2021 |
| Forecast period | 2022 – 2028 |
| Region covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Key companies Profiled | The companies include Corning incorporated, Prysmian Group, Finisar, AFL Global, Sumitomo Electric Industries, Ltd., LS Cable & System, Optical Cable Corporation, General Cable, Furukawa Electric Co. Ltd., Leoni AG are the key players. |
By Cable Type
By Optical Fiber Type
By Application
By Region
A fiber optic is an easygoing, transparent fiber created of extruded glass (silica) or plastic that can serve as a waveguide, or “light pipe,” to transfer light between the two ends of the fiber. A cylindrical dielectric waveguide sends light along its axis by total internal reflection.
The increasing number of connected devices will result in a tremendous demand for higher bandwidth, which will, in turn, result in the growth of IoT. Datacenter colocation services that use fiber optics to transfer information will also help boost IoT’s growth.
The largest fiber optics supply chain concentration is Wuhan, home to Fiberhome, YOFC, and Accelink, among other companies, which comprise 25% of the global optical fiber production capacity. During the phase of the covid-19 pandemic, the demand was usually weak, but production usually continued at decreased levels.
Fiber Optics Market Challenge the most fundamental challenge fiber-optic cable manufacturers face is introducing wireless technology to exploit the Internet. The improvement in technologies has optimized the speed and attributes of wireless technology. An effective market change is observable towards the wireless systems as wireless local area network (WLAN) has become the most challenging for accessing the Internet in domestic and commercial sectors.
The companies include Corning incorporated, Prysmian Group, Finisar, AFL Global, Sumitomo Electric Industries, Ltd., LS Cable & System, Optical Cable Corporation, General Cable, Furukawa Electric Co. Ltd., Leoni AG are the key players.
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