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The Global Fiber Optic Components Market size is expected to reach $36.3 billion by 2027, rising at a market growth of 8.1% CAGR during the forecast period.
Fiber optic components are an integral part of fiber optic infrastructure used to meet the rising demand for fiber optic communication across various countries and continents. The fiber optic communication market is majorly divided into fiber optic components & fiber optic cables. The fiber optic cables use light as a medium of transferring information from one place to another. These are used in fiber optic communication to transmit these signals to long distances. These support higher bandwidth in comparison to copper cables. Due to this, they are the perfect choice for the new generation technologies like 4G & 5G.
According to the various studies conducted by scientists and researchers across the world, continuously developing technology is one of the innovations of the present day. Technology has been helpful for a large number of applications & advancements in technology are taking place continuously. Rising demand for high bandwidth communication is the main factor accelerating the market growth. IT and Telecommunication are the main sectors for a broad variety of applications. The advancements of fiber-rich infrastructure have appreciably increased the demand for these cables.
Fiber optic technology is being adopted by the whole world because of the inbuilt advantages of conventionally used copper. Glass optical fiber includes high flexible strength in comparison to other mediums. Also, the fiber is lighter & smaller as compared to the copper which makes it easier to handle along with less space requirements. Field termination, testing, and splicing of fiber optic cables & connectors is comparatively easier. Fiber optic technology is used in various applications including computer links, video transmissions, telecommunications, medical, scientific areas, select industrial and defense.
The widespread COVID-19 pandemic has affected the world’s economy brutally. Various restrictions were imposed by the governments of different countries such as restriction over the movement of goods & people, and complete lockdown implemented in order to curb the spread of disease. All these restrictions have led to a shortage of raw materials for many industries. Further, it also resulted in disruptions in supply chains.
The fiber optic components market has witnessed significant growth in the recent past. This is because of the increasing internet penetration & data traffic, rising installation of data centers along with the growing demand for reliability and bandwidth. The pandemic has negatively affected the fiber optic components market.
The internet plays a crucial role for connected devices. Fiber optic is considered as the backbone of the internet as the optical fiber cables are utilized as a medium to transmit the information from one point to another. As per the record of the International Telecommunication Union (ITU), in 2018, 51.2% of the total population in the world was using the internet and the growth rate in the same year was 45%. The increasing importance of cloud computing, data storage & transfer and the Internet of Things are surging the use of the internet.
The International Energy Agency (IEA) estimates that the number of people using the internet will reach up to 5.0 billion by 2025 from 3.6 billion in 2018. In addition, the number of IoT connections is likely to increase to 25.0 billion by 2025 from 7.5 billion in 2018. The rise in the number of connected devices would result in higher demand for higher bandwidth which further will result in the growth of IoT.
The development of telecommunication infrastructure in the emerging economies would have a positive impact on market growth. The demand for smart devices & other related applications has been increased due to the arrival of artificial intelligence, big data and the internet of things. The interconnected technologies play a crucial role in transferring, capturing, & translating data into meaningful information across the telecommunication sector that is important for reinforcing urban infrastructure. The high-speed fiber optic network is the backbone for such kind of infrastructural development that can transfer a large amount of data with a high speed from one point to another.
Wireless communication systems use microwave radio spectrum to transmit information from one end to another. Radio frequency & fiber space optics (FSO) are among the most commonly used techniques for wireless communication.
Optical networks are at a high risk to various types of security attacks or breaches that are aimed to create disruptions in services and get unauthorized access to carried data that is also called eavesdropping. Fiber optic communication and storage systems are considered safer than conventional copper cable-based systems because hacking into data stored at a fiber optic based system needs highly advanced technology that is available only at the government agencies. But from the past few years inexpensive hardware & software are available in the market.
Hardware devices like electrical/ optical converters transfer the converted through an Ethernet connection. Furthermore, hacking is also possible by the use of sniffer software. The security attacks may lead to the financial losses of the clients and can also cause network-wide disruption to services, which may result in the loss of a large amount of essential data.
Based on Component, the market is segmented into Transceivers, Cables, Active Optical Cables, Connectors, Amplifiers, Splitters & Circulators and Others. In 2020, the transceivers segment dominated the fiber optic component market by generating the highest revenue share. Rising adoption of smart devices like laptops, smartphones, IoT-based home security systems, gaming sensors, and home assistants along with the increasing data traffic are the major factors responsible for the growth of high speed, coherent optical transceiver modules. Also, the introduction of the 5G network & integration of IoT (Internet of Things), AI (artificial intelligence) has positively affected the market.
Based on Application, the market is segmented into Communications (Telecommunications, Data Centers and Enterprises), Distributed Sensing, Lighting and Analytical & Medical Equipment. The distributed sensing segment acquired a substantial revenue share in the fibre optic component market in 2020. Distributed sensing for temperature sensors is used in power cable & transmission line monitoring in plant & process engineering. The cost-effectiveness of cost distributed fibre optic sensors is driving the growth of this segment.
|Market size value in 2020
|USD 22.2 Billion
|Market size forecast in 2027
|USD 36.3 Billion
|2017 to 2019
|2021 to 2027
|Revenue Growth Rate
|CAGR of 8.1% from 2021 to 2027
|Number of Pages
|Number of Tables
|Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling
|Component, Application, Region
|US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2020, the Asia Pacific region garnered a promising revenue share in the fiber optic component market. Rising industrialization & enhancement in infrastructure in the region has increased the demand for the fiber optic components market to be used in a broad variety of applications across the Asia Pacific. Furthermore, the increasing use of fiber optics in the healthcare sector in Asian countries like India, Japan & China would support the market growth.
Free Valuable Insights: Global Fiber Optic Components Market size to reach USD 36.3 Billion by 2027
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Fujitsu Limited and Broadcom, Inc. are the forerunners in the Fiber Optic Components Market. Companies such as Amphenol Corporation, Lumentum Holdings, Inc., and TE Connectivity Ltd. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Sumitomo Electric Industries, Ltd., Furukawa Electric Co., Ltd., II-VI Incorporated, Amphenol Corporation, Fujitsu Limited (Fujitsu Optical Components Limited), Broadcom, Inc., Lumentum Holdings, Inc., TE Connectivity Ltd., EMCORE Corporation, and Accelink Technology Co. Ltd.
The fiber optic components market size is projected to reach USD 36.3 billion by 2027.
Rising demand for internet are driving the market in coming years, however, Inadequate necessary skills and strategic management limited the growth of the market.
Sumitomo Electric Industries, Ltd., Furukawa Electric Co., Ltd., II-VI Incorporated, Amphenol Corporation, Fujitsu Limited (Fujitsu Optical Components Limited), Broadcom, Inc., Lumentum Holdings, Inc., TE Connectivity Ltd., EMCORE Corporation, and Accelink Technology Co. Ltd.
The Communications segment acquired maximum revenue share in the Global Fiber Optic Components Market by Application in 2020, thereby, achieving a market value of $25.2 billion by 2027.
The North America is fastest growing region the Global Fiber Optic Components Market by Region in 2020, and would continue to be a dominant market till 2027.
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