The global industrial fiber optic market size is expected to rise at a CAGR of 11% in the forecast period. The global market size is anticipated to grow by USD 8.15 billion by 2025. High adoption of fiber optic cables for data transmission over the globe is likely to encourage a significant market demand in the due course of time.
The growing inclination towards fiber-communications for wired networks is trending and extensive research and development is conducted to understand its effect over a wide range of applications. Technological advancements have opened new avenues across the global markets to explore full potential of the fiber optics technology. For instance, data can be transmitted efficiently using fiber optic technology ranging from a few meters to several kilometers.
The growing demand for high bandwidth communication supplements the market growth in the forecast period. The growing need for better communication channels for voice, data and video transmission is expected to encourage market development in the following years. In addition, the rise in technological advancements in the telecommunication sector has been pivotal all these years. Moreover, the rise in deployment of broadband network models have necessitated the large-scale deployments of fiber optic networks.
Widespread implementation of 5G technology and increase in demand for fiber to home connectivity and growing importance of Internet of Things (IoT) are acting as major drivers for the market growth.
Factors such as high costs of installation and lack of technical competency to sustain growing demand is likely to restrain the market development in the coming years. The cost of investment is huge and therefore, a device failure can incur significant loss. Therefore, the need for high technical competency and use of durable hardware device largely exists.
The industrial fiber optic market is likely to witness lucrative opportunities such as emergence of advanced communication technologies, and increase in adoption of fiber to home connectivity. Increase in investments for optical fiber cable network infrastructure is expected to play a pivotal in generation of opportunities in the forecast period. China
The global industrial fiber optic market is segmented on the basis of mode, transaction, and industry vertical.
Multi-Mode to Dominate the Market
The mode segment comprises single mode and multi-mode. Multi-mode is expected to dominate the market growth attributing to the rise in demand from commercial domain. It is also anticipated that the demand for bandwidth and internet speed is likely to grow thrice in coming years therein creating a huge demand for advanced hardware devices. The demand for single mode is also expected to grow by leap and bounds owing to its benefits and data transmitting capabilities.
Plastic Optical Fiber to Retain a Significant Market Growth
The transaction segment comprises glass optical and plastic optical fiber. Plastic optical fiber is expected to grab a huge market share in the coming years. Recyclable initiatives are some of the major growth highlights.
Telecom & IT to Hold a Dominant Position
The industry vertical segment comprises public sector, telecom & IT, energy & utilities, manufacturing, aerospace and defense. Telecommunications and IT is a dominant sector for industrial fiber optics since it offers promising growth based on high adoption of fiber optics services for data transfer services.
Based on regional segmentation, the industrial fiber optic market comprises North America, South America, Europe, Asia Pacific, Middle-East, and Africa.
Asia Pacific to Leap Higher in the Global Market Space
In terms of revenue, Asia Pacific has scored high in the past few years attributing to the advanced generation of fiber optics and telecom revolution across various countries. Adoption of advanced communication technologies and emergence of startups with greater demand for internet bandwidth is expected to have a significant impact on the development of regional market.
North America and Europe are giant markets for telecommunication services and have a witnessed a steadfast growth in the past few years. The revenue share is expected to rise significantly owing to Government initiatives and investment in security infrastructure. Consumer awareness is expected to play a significant role in creating sustainable market development that would empower fiber optics within telecommunications sectors in these markets.
The key players profiled in the industrial fiber optic market report comprises Corning Inc, Sumitomo Electric Industries Ltd, The Prysmian Group, Sterlite Technologies Ltd, Nexans S.A., Reflex Photonics Inc., Tata Communications Ltd, and Furukawa Electric Co Ltd. Major players are adopting mergers, acquisitions, collaborations, and strategic partnerships to strengthen their market presence in geographical markets. In addition, the key players are focusing more on opening manufacturing facility to meet global demand for optical fiber cable across the globe.