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The Fiber Optic Cable Market size is forecast to increase by USD 8,335.11 million. The market is estimated to grow at a CAGR of 11.61% between 2022 and 2027. The growth of the market depends on several factors, including a rise in internet penetration and data traffic, increasing product development, and growing demand for high bandwidth. This cable is composed of layers of optic glass or plastic that transmit information as light signals. It is widely used for long-distance and high-performance data networking as it has higher bandwidth and transmit speeds. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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One of the key factors driving the market is the rise in Internet penetration and data traffic. The high rates of Internet penetration and smartphone adoption are some of the key factors that are significantly contributing to the market. Additionally, there is a rise in investments in healthcare and telecommunication which is attributed to strong distribution channels and logistic services, especially in developing countries.
As a result, there is an increasing need for global shipping and cross-border e-commerce. Additionally, M-commerce is gaining significant traction across developing countries as web-enabled mobile handsets are the main source of point-of-Internet access for many people in such countries. Moreover, the growing internet penetration in several countries such as India and China is expected to positively impact the optical fiber cable (OFC) market. Hence, such factors are expected to drive the market during the forecast period.
A key factor shaping the market is the proliferation of data centers. Data centers have become an essential part of all business enterprises across the world. The large volume of data generated has forced many companies to build data centers of their own or lease data center space. Additionally, the increasing focus on cloud computing will further fuel the demand for data centers.
Furthermore, there is an increase in investments by several companies to build data centers. For instance, in July 2023, Teraco, Africa's largest platform provider for company-neutral data centers and interconnection, announced the expansion of JB4 data center phase 2 construction in Johannesburg. Similarly, in April 2023, Colt DCS announced the construction of its fourth data center in Inzai, Japan. Hence, such factors are expected to positively impact the optical fiber cable market which in turn will drive the market during the forecast period.
The high cost of cable is one of the key challenges hindering market. One of the main advantages is that it offers companies the ability to monitor challenging working conditions and collect highly accurate real-time data. Some of the main benefits of this type of cable are enormous data transfer and high speed but it is relatively expensive when compared to its alternatives.
Moreover, the high cost can depend on several factors such as applications, the type of cable used, and the operating conditions. Hence, it is not affordable for many organizations which requires real-time monitoring and sensing. Additionally, the installation and maintenance of fiber optics can be a complex process depending on its operating conditions. Hence, such factors can pose a major threat which in turn can hinder the market during the forest period.
The telecommunication segment is estimated to witness significant growth during the forecast period. One of the main reasons for the significant growth of the telecommunication segment is due to its several advantages such as the ability to transmit data and offer high bandwidth. Some of the key application areas include computer networking, broadcasting, the Internet, and cable television as it offer better connections and performance. Additionally, it can be installed to support long-distance connections between computer networks in various locations which fuels the adoption.
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The telecommunication segment was the largest segment and was valued at USD 3,252.55 million in 2017. One of the main reasons for the rising adoption of these cables in the telecommunication segment is due to its several benefits such as its ability to support vast data, high speed and bandwidth, low attenuation, high reliability, immunity to electromagnetic interference, and can be easily maintained. There is an increasing demand for these cables across the world, especially in developing countries such as India and China, Brazil, and Malaysia due to the growing internet penetration in these countries which requires higher bandwidth. Thus, such factors are expected to fuel this segment which in turn will drive the market during the forecast period.
Low-cost and high production efficiency of the single-mode segment is expected to increase the fiber optics market. This segment of fiber cable provides a more direct route and facilitates the transmission of signals to longer distances. Some of the key application areas of single-mode fiber cable include data centers, military telecommunications and networking, factory automation, broadcasting, and industrial networking. This segment mainly uses a stronger, brighter light source with lesser attenuation. The main advantage of single-mode is that higher production efficiency and is cheaper when compared to multi-mode. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market during the forecast period.
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North America is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the main reasons for the significant growth of the global optical fiber cable (OFC) market in North America is due to the increasing need for intra and inter-data center communications in industries in this region.
Additionally, factors such as the rising need for high-speed Internet connectivity and expanding IT and telecommunications in countries such as US and Canada are significantly contributing to the growth of the market. Furthermore, there is wide adoption of these cables across industries such as food and beverage, energy and power, healthcare, and automotive manufacturing industries. Hence, such factors are expected to drive the global market in the region during the forecast period.
This market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their expansion strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AMETEK Inc: The company offers fiber optic cables such as telescopes, microscopes, beam delivery, and complex system.
Bhuwal Insulation Cable Pvt. Ltd: The company offers insulation cables, silicone rubber cables, PTFE cables and wires, and EPR rubber cables.
Claron Fibre Optics Pvt. Ltd: The company offers fiber optic cables such as fiber Optic Cable, ce approved Fibre Optic Cable, VDE-approved Fibre Optic Cable, and IS 9968 approved Fibre Optic Cable.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing rapid growth, driven by the demand for fifth-generation networks and the need for robust infrastructure to support digital transformation across various sectors. They offer enhanced security compared to traditional copper cables, transmitting data using light pulses rather than electronic signals, making them ideal for secure online transactions and virtual meetings.
The deployment of optic fiber cables is cost-effective and convenient, catering to industrial applications such as data transmission, surgeries, and mechanical inspections. Government programs, including initiatives by the European Commission, support 5G deployment through public-private partnerships and public funding, reducing installation costs and accelerating the adoption of this new technology. With their versatility and reliability, are indispensable in driving connectivity and powering the digital age.
This market growth analysis report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Fiber Optic Cable Market Scope |
|
Report Coverage |
Details |
Page number |
156 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.61% |
Market growth 2023-2027 |
USD 8,335.11 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
10.69 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 46% |
Key countries |
US, China, India, Germany, and the UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AMETEK Inc., Bhuwal Insulation Cable Pvt. Ltd., Clarion Fibre Optics Pvt. Ltd., Cross Co., Dron Edge India Pvt. Ltd., Fiberoptics Technology Inc., Finolex Cables Ltd., HUBER PLUS SUHNER AG, igus GmbH, Ningbo Cibo Communication Technology Co. Ltd., Orient Cables India Pvt. Ltd., Pratap Digital Communications Pvt. Ltd., Precision Fiber Products Inc., Prysmian Spa, Vindhya Telelinks Ltd., Yangtze Optical Fibre and Cable Joint Stock Ltd. Co., HFCL Ltd., Hunan GL Technology Co. Ltd., and Sterlite Technologies Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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