According to a report by Grand View Research, Inc., global fiber optics market is projected to be valued at USD 9.12 billion by 2025. Growing requirement for high-speed data services and flawless communication among consumers is anticipated to propel demand for fiber optics technology. This technology is likely to offer its users inherent security, protection against signal interference, and high bandwidth capabilities.
High demand for data security in military and aerospace sector can fuel growth of market in the coming years. Growing adoption of technology in medical services is anticipated to propel market growth. Increasing use of high bandwidth fiber optic cable for advanced communication and data services can influence growth of market in the next few years. High demand for optical communication and sensing applications is expected to spur growth of market in the coming years. Rising need for optic cables to fulfill high bandwidth requirements across enterprise networks and carriers can augment market growth during the forecast period (2016 to 2025).
High installation cost incurred during set-up of fiber optics network can hinder market growth. In addition, capital investment required for development of new fabrication technologies can obstruct growth of fiber optics market during the forecast period.
The fiber optics market can be segregated on the basis of product type, application, and region. Based on product type, the market can be classified into multimode, single mode, and plastic optical fiber (POF). In 2015, multimode fiber optic segment dominated the market and valued at USD 2.86 billion. On the contrary, single mode segment is anticipated to witness considerable growth owing to low power loss as compared to counterparts such as multimode and plastic optic. However, plastic optic fiber (POF) segment can display high growth rate during the forecast period owing to presence of cost-effective polymer core.
Based on application, the market can be segmented into oil & gas, military & aerospace, telecom, BFSI, railway, medical, and others. Telecom segment is anticipated to witness maximum market share during the forecast period. Growing adoption of technology in data transmission services and communication can stimulate growth of this segment. Fiber optics can enable high speed data transfer services in both small and long-range communications. Growing number of cloud-based applications such as audio-video-services and video-on-demand services and further influence demand for fiber optic installations. In addition, military & aerospace and medical segments are also estimated to witness significant growth in the coming years attributed to growing adoption of technology in such segments. Stringent regulations being imposed by medical associations and government regulating authorities can fuel demand for fiber optics in medical sector.
On the contrary, railway segment can invest slowly in this technology during initial years. However, easy repair of railway tracks using fiber optics can impel adoption of this technology and market growth in the coming years.
Regional segmentation includes Europe, North America, Asia Pacific, South America, and Middle East & Africa (MEA). In 2015, North America dominated the market and accounted for 31.1% market share.
In Asia Pacific, the market is expected to witness significant growth in the coming years owing to high demand for fiber optics from IT & telecommunication and administrative sector. In addition, growing adoption of fiber optics in medical applications in countries such as India, China, and Japan is likely to stimulate market growth in this region.
In Europe, the market can grow well in the next few years owing to development of security infrastructure in the region. In addition, growing awareness regarding benefits of fiber optics is likely to foster product demand in the coming years.
Some of the leading companies offering fiber optics are Optical Cable Corporation; Sterlite Technologies Limited; Corning, Inc.; Yangtze Optical Fiber; and Cable Joint Stock Limited Company. Most manufacturing companies are focusing on R&D investments to develop new and innovative products to match consumer demand. Production and installation of fiber optics is expected to be a tedious and costly event. Hence, companies are expected to offer cost-effective and reliable products in the coming years to curb alternatives to fiber optics.