Fiber Optics Market Analysis By Type (Single Mode, Multimode, Plastic Optical Fiber), By Application (Telecom, Oil & Gas, Military & Aerospace, BFSI, Medical, Railway), By Region, And Segment Forecasts, 2014 – 2025
Source: Grand View Research
Industry Insights
The global fiber optics market size was valued at USD 5,411.0 million in 2015 and is expected to gain traction over the forecast period. The global market is majorly driven by the pursuit of high bandwidth communication and growing opportunities in the healthcare sector along with increasing government funding in the development of network infrastructure.
The industry presents promising growth prospects throughout the forecast period in view of a combination of factors namely increasing investments and research undertaken by prominent players in the industry to develop and upgrade the optical technology application arena. In addition, the growing awareness of the benefits of adopting the technology is further propelling market growth.
U.S. fiber optics market by type, 2014 – 2025 (USD Million)
Optical technology has gained prominence over the past few years, owing to persistent research & development activities and the escalating demand for high bandwidth communication and data services. The global market for the overall optical technology segment, including connectors, sensors, and fiber optic cables, is expected to grow sizably over the forecast period.
The optical arcade is anticipated to witness a substantial growth over the forecast period. The high demand for optical communication and sensing applications for diverse purposes provides avenues for industry growth. Furthermore, the growing demand for cost-effective, power-efficient, and high-level integration of IT infrastructure is expected to impel market demand in the next few years.
Type Insights
Based on type, the market has been segmented into single mode, multimode, and Plastic Optical Fiber (POF). The multimode segment dominated the market in terms of revenue in 2015 and was valued at USD 2,864.2 million.
The multimode and single mode segments are expected to witness continuity in growth and dominate the industry over the forecast period. However, factors such as capital investment made for the development of new fabrication technologies may pose a challenge to market demand over the forecast period.
The single-mode segment is anticipated to have considerable growth over the projected period. Single mode fiber is used for long distance installations ranging from 2 meters to 10,000 meters. It offers lower power loss in comparison to its multimode and plastic optic counterparts. However, it is costlier than multimode and plastic optical fibers.
Plastic Optic Fiber (POF) is anticipated to witness high growth rate over the forecast period. POF differs from its single and multimode counterparts on the basis of the core materials used in POF cable construction. While single and multimode fragments, have a glass core, POF cables have a polymer core. This offers a dynamic application portfolio along with cost saving.
Application Insights
Based on applications, the market has been segmented into telecom, oil & gas, military & aerospace, BFSI, medical, railway, and other applications. The telecom application would be the largest segment in terms of revenue and is anticipated to dominate the fiber optic application arena in terms of size by 2025.
Medical and military & aerospace applications are poised to witness a significant growth rate which is attributed to the increasing adoption of optic technology devices across these segments. Stringent regulations and standards being imposed by the government regulating authorities and medical associations are further helping the fiber optics market to flourish in the medical sector, eventually driving the industry to grow at a notable pace over the estimated time.
Currently, the growth prospects for optical technology in the telecommunications segment appears to be promising due to the growing adoption of the technology in communication and data transmission services. Fiber optics enable high-speed data transfer services in both small and long range communications. Furthermore, the increasing cloud-based applications, audio-video services, and Video-on-Demand (VoD) services further stimulate the demand for optical installations.
The technology is under constant R&D to develop low-cost applications and technological solutions for the mass market. Fiber optics has enormous potential to be incorporated into a wide range of applications such as the healthcare, railway, aerospace & defense, and oil & gas sectors.
Fiber optic market by application, 2015 (%)
Regional Insights
In 2015, the North American region dominated the global market with a market share of 31.1%. The Asia Pacific regional market is spearheading revenue growth owing to increased technological advancements due to their large-scale adoption in IT & telecommunication and administrative sector.
The growth in the region can be attributed to the increasing application areas in the technology sector. The high penetration rate of the manufacturing sector and the expanding IT & telecommunication sector across the Asia Pacific region are strengthening the marketplace’s hold in the region.
Moreover, the increasing application of fiber optics in the medical sector is also catapulting growth across countries such as China, Japan, and India, thus propelling the overall industry to grow at a significant rate.
Governments of developed countries, such as the U.S., the UK, Germany, China, Japan, and others, are heavily investing to enhance their security infrastructures on individual and country levels. Awareness regarding the benefits of the technology is growing rapidly in the developing economies, which is expected to strengthen their position globally.
Competitive Insights
The key industry participants include AFL (U.S.), Birla Furukawa Fiber Optics Private Limited (India), Finolex Cables Ltd. (India), Yangtze Optical Fiber, and Cable Joint Stock Limited Company (China). The widespread use of the high-speed internet connectivity plays a significant role, has instigated an increased adoption of fiber optic cables and systems in the telecommunication and data communication segments.