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The fiber optics market size is estimated to grow at a CAGR of 7.03% between 2022 and 2027. The market size is forecast to increase by USD 3,594.94 million. The growth of the market depends on several factors, such as M&A strategies followed by market players, a rise in global Internet traffic, and rising smart city initiatives.
This report extensively covers market segmentation by application (telecom, datacom, and others), material (glass and plastic), and geography (North America, Europe, the Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
Fiber Optics Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Fiber optics is an essential aspect in the success and implementation of smart city initiatives. It serves as the core for the implementation of different smart city applications as several cities across the world are striving to become more. As smart city applications produce huge volumes of data such as information from IoT devices, sensors, cameras, and other connected infrastructure, these fiber optics essentially offer the high data transmission speeds needed to manage this data efficiently and allow real-time monitoring and analysis.
Furthermore, Fiber optics plays a major role in the implementation of smart transportation systems, including intelligent traffic management and connected autonomous vehicles. Additionally, there is an increasing adoption of fiber optics cables for various applications as these cables can serve as a foundation for offering high-speed public Wi-Fi hotspots in different areas of smart cities, enhancing connectivity, and enhancing digital access for residents and visitors.
The rising demand for faster, more reliable, and more expansive communication networks to support the growing data requirements of our increasingly connected world is fuelling the increasing demand for 5G infrastructure and fiber optics. In order for the smooth functioning of 5G networks, it requires a robust and high-speed backhaul to connect base stations (small cells) to the core network. Thus, there is increasing adoption of fiber optic cables as it offers the necessary bandwidth and low latency for seamless data transfer between base stations and data centers.
Furthermore, the implementation of a 5G network allows the connection of a vast number of devices simultaneously. The main advantage of the adoption of fiber optic cables is that they can manage the high data volumes generated by these devices, ensuring seamless communication and data exchange. Hence, such applications are expected to fuel the demand for fiber optic cables which in turn will drive the market growth during the forecast period.
There are stringent regulatory processes associated with necessary permissions and permits for laying fiber optic cables. As a result, it can lead to delays and increase the implementation costs for network providers. Additionally, the installation of fiber optic cables is a complex process that involves digging trenches and laying infrastructure in public and private properties. Thus, necessary permits and right-of-way approvals from local governments and property owners for such an installation process can be time-consuming and complicated.
As a result, it leads to delays in the implementation of communication cables. Additionally, market players have to adhere to several environmental regulations in order to ensure minimal disruption to ecosystems. Hence, it can increase the overall project's complexity and cost. Hence, such constraints are expected to negatively impact the market which in turn will hinder the market growth during the forecast period.
The telecom segment is estimated to witness significant growth during the forecast period. Some of the key factors which are significantly fuelling the growth of this segment include an increase in Internet traffic leading to an increase in bandwidth, growth of fiber to the X (FTTx), the rapid growth of 5G technology and its commercialization and the growth of data-heavy applications including video streaming, music streaming, and downloads. There is an increasing preference for fiber optics when compared to copper cables as it is a much more convenient cabling option, which will support these future requirements.
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The telecom segment was the largest segment and was valued at USD 4,809.87 million in 2017. One of the main factors which is significantly contributing to the growth of this segment is the growth of FTTx. FTTX refers to last-mile communication, such as homes and company premises. The main reason for the growth of the FTTx applications is that facilitates optical fiber connection for last-mile connections. Additionally, there is an increasing preference for optic cables due to the growing demand from customers for faster Internet at their homes. As a result, it will result in increased sales of the fiber optics required at company premises, homes, complexes such as shopping malls, and other buildings. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the global fiber optics market growth during the forecast period.
Based on the material, the segment is classified into glass and plastic. There is increasing adoption of glass fiber optics cables for telecommunication, networking, and data transmission systems due to their high bandwidth, low signal losses, and immunity to electromagnetic interference. The main feature of this segment is that it imparts very low signal attenuation, enabling light to travel long distances without significant losses. Additionally, this feature allows high-speed and long-range data transmission, making them the best option for telecommunication and Internet applications. Hence, such benefits are expected to fuel the growth of this segment which in turn will drive the global fiber optics market growth during the forecast period.
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APAC is estimated to contribute 50% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. One of the main factors which is significantly contributing to the growth of the global fiber optic market in APAC is the increasing number of telecom subscribers and the deployment of fiber optics in communications. There is an increasing focus on digitization by several countries in APAC such as India and China which fuels the demand for fiber optic technologies.
For instance, in December 2022, as per the Ministry of Communications of India, a total of 35.5 million kilometers of fiber optic cable (OFC) had already been deployed in the country as of September 30, 2022, which meets the rising demand for better bandwidth, resiliency, and high-volume connectivity. Additionally, there is great future potential for fiber optic technologies as it has a tremendous capacity to support 5G connectivity. Furthermore, there is increasing investment in fiber optic technologies which will force telecom providers to adopt such technologies in these regions. Hence, such factors are expected to drive market growth in the region during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global fiber optic market witnessed a significant slowdown due to the disruptions in supply chains and the operations of the industrial and telecommunication sectors as well as the temporary closure of the transportation, industrial, IT, construction, and other industries. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the resumption of operations in end-user industries of fiber optics, such as telecom and IT. Such factors are expected to drive the market during the forecast period.
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.
Belden Inc: The company offers fiber optics such as SMPTE cable.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
CommScope Holding Co. Inc., Corning Inc., FiberHome Telecommunication Technologies Co. Ltd., Finolex Cables Ltd., Fujikura Co. Ltd., Furukawa Electric Co. Ltd., Hengtong Group Co. Ltd., HFCL Ltd., Hitachi Ltd., II VI Inc., Jiangsu Zhongtian Technology Co Ltd, Leoni AG, LS Corp., Nexans SA, Optical Cable Corp., Prysmian Spa, Sterlite Technologies Ltd., Sumitomo Electric Industries Ltd., and Yangtze Optical Fibre and Cable Joint Stock Ltd. Co.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The fiber optics market 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.
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Fiber Optics Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.03% |
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Market growth 2023-2027 |
USD 3,594.94 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.55 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 50% |
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Key countries |
US, China, South Korea, India, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Belden Inc., CommScope Holding Co. Inc., Corning Inc., FiberHome Telecommunication Technologies Co. Ltd., Finolex Cables Ltd., Fujikura Co. Ltd., Furukawa Electric Co. Ltd., Hengtong Group Co. Ltd., HFCL Ltd., Hitachi Ltd., II VI Inc., Jiangsu Zhongtian Technology Co Ltd, Leoni AG, LS Corp., Nexans SA, Optical Cable Corp., Prysmian Spa, Sterlite Technologies Ltd., Sumitomo Electric Industries Ltd., and Yangtze Optical Fibre and Cable Joint Stock Ltd. Co. |
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Market dynamics |
Parent market analysis, 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. |
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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. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Material
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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