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The optical time domain reflectometer (OTDR) market size is forecast to increase by USD 76.43 million, growing at a CAGR of 5.51% between 2022 and 2027. The market size The growth of the market depends on several factors, including the increasing demand for tier-2 certification standards, growing investments in smart city projects, and IoT applications driving the growth of network infrastructure. An optical time domain reflectometer (OTDR) is an optical fiber testing equipment used to test the performance of new fiber-optic links and to detect the problems within the existing fiber links. The process of OTDR testing includes the injection of a series of high-power lasers or fiber-optic light source pulses into the fiber under test to extract the light back from the points along the fiber. Then it measures the strength of the return pulses by plotting a graph of optical power in decibels (dB) versus the length of the fiber.
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IoT applications driving the growth of network infrastructure are driving growth. The core network of networks for communication between organizations has evolved to include fiber optic cables. Several firms are choosing to move from copper cabling to fiber cabling because of its numerous benefits, such as low attenuation, high return on investment, and support for high bandwidth applications. The exponential growth in data traffic is fueling the demand for high network speeds and high bandwidths, which is resulting in the deployment of optical fiber cables.
While deploying optical fiber cabling, the testing and certification of the installation are required to ensure the reliability and value of the network. The optical fiber cable installation service providers are increasingly supplementing tier-1 testing with tier-2 testing to minimize optical fiber link loss and to ensure reliable network coverage and optimized workflow. Thus, the increasing demand for the tier-2 certification standard is expected to drive the growth of the global market during the forecast period.
The facilitation of 5G network through ROF is a primary trend in the market. Transmitting RF signals through optical fiber cables converts RF waves into light waves using Radiofrequency (RF) over fiber (ROF). This offers the advantage of low attenuation in transmission over long distances. Furthermore, this transmission is immune to electromagnetic interference (EMI) and radio-frequency interference (RFI) as the fiber is a non-conductive medium.
Moreover, the development of 5G technology has made it possible to transmit radio waves through optical fibers on a 5G network. The growth of 5G technology RF through cables is supported by increased investment and strategic alliances in the market. For example, Reliance Jio and Google Cloud announced a partnership for 5G solutions in August 2022. Such investments will accelerate the installation of optical fiber cables, which is expected to drive the demand for OTDRs by CSPs.
The growing market for rental test equipment is a major market restrain in the market. There is a need for substantial capital investment in high-performance OTDRs. The high average selling price (ASP) of application-specific high-end OTDRs has accelerated the demand for used and rental OTDRs for testing purposes. OTDRs, which are mainly used as part of the deployment of optical fiber networks, represent a significant upfront procurement cost. These devices have served no useful purpose for some time after they were deployed.
Hence, to achieve a better total cost of ownership (TCO), companies are shifting to the rental OTDR market, where they get access to these devices for a specific period, which will help them save costs. In fact, the market for renting OTDs is experiencing strong growth with a number of big suppliers having their own authorized rental partners. A number of suppliers in the market have established partnerships with different companies which provide test and measuring equipment for rent or on a lease basis. Even though this business model is generating revenues, it is adversely affecting the global OTDR market, which in turn can hamper the growth of the market during the forecast period.
The market share growth by the telecommunication segment will be significant during the forecast period. Telecommunications, also known as telecom, is the exchange of information over long distances. It's a broad term that deals with various sectors, yet every single sector involves the sender and receiver. It is used as a term for exchanging information by electronic means and can apply to all kinds of communication such as phone conversations, data transmission, or video transmissions. The telecommunication segment includes the installation of optical fiber networks for data transmission and interconnection purposes in data centers.
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The telecommunication segments show a gradual increase in the market share of USD 82.56 million in 2017 and continue to grow by 2021. The growth of the global market in the telecommunication segment is driven by the increasing deployment of optical fiber cables to connect cell sites and data centers. The increasing demand for high-speed broadband connectivity is driven by the increased demand for high-speed networks in urban and semi-rural areas. The growing use of FTTx applications has been a significant driving force in the telecommunications sector as it allows last-mile connections to be made with optical fiber. Copper cables are used in most cases for the connection. But with increasing demand from customers for faster Internet speeds in their homes, fiber optic cables are becoming a preferred choice.
Fiber optic cables are increasingly being used in cable TV network deployment. Each site shall be connected to an isolated terminal through a dedicated optical fiber line on cable television networks. From the customer's point of contact to the remote terminal, channel selection signals will be sent over the fiber. A fiber optic cable can be used for long distances while maintaining sound and picture quality. Cable television is chosen because of its characteristics such as greater quality, the capacity for more programs to be transmitted at lower costs, and an excellent customer experience. Operators have a considerable information carry capacity for 4K and HD content that can be easily brought to them by the deployment of fiber cable in cable TV networks. Further, it helps network operators by giving them a return path, which they can use for telephone connections and the Internet, leading to an increase in revenue generation for service providers. The cable TV segment is expected to grow, which in turn will drive the growth of the global OTDR market during the forecast period.
Based on type, the market has been segmented into full-feature OTDR, hand-held OTDR, and fiber break locator. The full-feature OTDR is the largest segment in terms of market share by type in 2022 and is expected to grow significantly during the forecast period. These OTDRs are heavier and larger in size. They are, despite their large shape, considered to be the smallest in size and weight of older OTDRs. These OTDRs are made up of the main frame that can be fitted with standard module parts in order to run a variety of fiber estimation operations. A full-feature OTDR often has a greater measurement range than other OTDR-like devices. It is often used in laboratories and in the field to measure complex fibers. A network cable or USB cable may be used by the user to operate this instrument from a remote location. The rising telecommunication sectors drive the demand for these OTDRs owing to their high measurement range, which in turn will drive the growth of the global market during the forecast period.
The hand-held OTDR segment is expected to increase its market share due to its popularity during the forecast period. In outdoor areas with a lot of battery use, hand-held OTDRs are designed to fix optical fiber networks. The hand-held OTDR is cheaper, easier to use, and lighter than other OTDRs. They can often be used in conjunction with computer software for easy data acquisition with a hand-held OTDR and advanced data analysis using computer software. Handheld OTDRs are typically used to measure fiber fractures, high loss points, high reflectance values, end linkstoend losses, and optical recovery ORL; as well as detection of broken fibers. Technology-based firms are increasing, where these optoelectronic instruments are used to characterize an optical fiber. Hence, the portability of these OTDRs is expected to boost the growth of the global market during the forecast period.
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North America is estimated to contribute 30% 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. In 2022, North America dominated the global market in terms of revenue share, primarily due to the increasing deployment of optical fiber networks in the region. In the region, an infrastructure for data networks has been set up and a number of data centers are located in different countries. They are also looking to invest in a growing number of data center locations to increase their presence and solidify their OTDR market share. The increasing demand for cloud services is one of the factors driving the growth of the data center network infrastructure in the region, which in turn is acting as the market enabler for the regional market under focus. Such factors will increase the market growth in this region during the forecast period.
The 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 growth 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.
Anritsu Corp. - The company offers optical time domain reflectometers such as CMA5000a Optical Time Domain Reflectometer, CD OTDR Modules, Optical Spectrum Analysis Application, and Polarization Mode Dispersion Application CMA5000a PMD.
Briticom - The company offers an optical time domain reflectometer namely Briticom OTDR.
Connectix Ltd. - The company offers an optical time domain reflectometer namely FibreFox Quad OTDR for multimode and single-mode test requirements.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The Market experiences rapid growth driven by increased usage for fiber infrastructure maintenance, especially in emerging economies. The commercial and residential sectors witness rapid adoption, leveraging smart OTDR technology for performance optimization. Fiber-optic media, wireless connectivity, and IoT advancements drive demand, particularly in 5G networks and passive optical networks (PON). However, challenges such as raw material shortages, shipping delays, and economic slowdowns hinder advancements in the communications industry. Strategic market analysis highlights opportunities for geographic expansion and technological innovation, particularly in the Asia-Pacific region, to enhance productivity and infrastructure system efficiency for optical fiber links.
The 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.
Optical Time Domain Reflectometer (OTDR) Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.51% |
Market growth 2023-2027 |
USD 76.43 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.71 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 30% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aishwarya Technologies and Telecom Ltd., Anritsu Corp., Briticom, Circuit Globe, Connectix Ltd., Corning Inc., EXFO Inc., Fibertronics Inc., Fluke Corp., Fortive Corp., Fujikura Co. Ltd., GAO Tek Inc., INNO Instrument Inc., Multicom Inc., ShinewayTech, Teledyne Technologies Inc., Texas Instruments Inc., VeEX Inc., Viavi Solutions Inc., and Yokogawa Electric Corp. |
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 |
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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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