Global Fiber Optics Market Size Was Valued at US$4.6 Billion in the Year 2020 and Is Projected to Reach US$8.6 Billion by 2027

September 16, 2021, New York, USA - Fiber Optics: Introduction

The long, thin strands of very pure glass are called fiber optics. Fiber optics is very thin strands of pure glass or plastic fibers, which is about the diameter of human hair. Fiber optics is also called optical fibers. These thin strands are arranged in bundles called optical cables. They are used to transmit light signals over a long distance. 

Fiber optics has higher bandwidth and transmit speeds, so they are used instead of copper cables. Fiber optics are widely used for telecommunication services such as the internet, television, and telephones.         

Advantages of Fiber Optics Network / Cables:

Better Bandwidth:

Fiber optic cables offer greater bandwidth than traditional metal cables.

Faster Speed:

Fiber optic cables are equipped with a core that transmits data by carrying light. Fiber optic cables are able to carry signals at a speed of up to 31% slower than the speed of the light and much faster than Cat5 or Cat6 copper cables.

Longer Transmission Distance:

Fiber optic cables can transmit signals far beyond the 328-foot limit for copper cables.

Better Reliability:

Fiber is resistant to extreme weather, temperature changes, and moisture. All of these factors can affect the connectivity of copper cables.

Thinner and Sturdier:

Fiber optic cables are lighter and thinner than copper cables. Fiber is more resilient to pull pressure than copper and less susceptible to damage and breakage.

Improved Latency:

Fiber optic networks reduce latency, especially when downloading or uploading video or high-definition content.

Stronger Security:

Fiber optic cable keeps data secure. It doesn't emit signals, so it is difficult to tap without your knowledge.

The Global Fiber Optics Market Overview and Analysis: 

Amid the COVID-19, the Global Fiber Optics Market was accounted for US$4.6 Billion in 2020, and it is estimated to reach US$8.6 Billion by 2027, growing at a CAGR of 9.3% from 2020 to 2027. The market's growth is primarily due to increased demand for FTTX, the telecommunications industry, and technological advances.

End-use applications are presenting challenges to optical fiber deployment, and the optical fibers themselves are becoming smaller. Telecom operators began looking for high-fiber count cables with smaller diameters. Cable manufacturers have been investing in inventing smaller fibers and cables. Prysmian had become the first company to launch the cables, which are made of optical fibers having a diameter of 180µm (micrometers), in April 2020. These cables will be used for FTTx and 5G networks.

Cloud and content providers have tried to attract more users over the years and offer reliable bandwidth-intensive services. This has led to a rise in popularity for submarine infrastructure. In 2019, the number of submarine cables will increase by 50% compared to 2018. The submarine cable will last approximately 25 years.

TeleGeography's submarine cables map also states that submarine cables are the backbone for the internet. Nearly 100 countries are connected by approximately 350 submarine cables that span 1.2 million km. The world of submarine cables has been transforming rapidly, and It is estimated that USD 8 billion to be invested from 2019 to 2021, reported by SubmarineNetworks.com.

The Key Market Segmentation of the Global Fiber Optics Market: 

Global Fiber Optics Market can be divided into Product Types, Material Types, Applications, and Geographical landscapes, etc. 

Global Fiber Optics Market Segmentation By Product Type:

Single-mode fiber optics

Multimode fiber optics

Global Fiber Optics Market Segmentation By Material Type:

Plastic optical fiber

Glass Optical Fiber

Global Fiber Optics Market Segmentation By Product Application:

Electronic and communication

Oil and Gas

Defense and Aerospace

Medical and healthcare

BFSI

Railway

Global Fiber Optics Market Segmentation By Geographical Landscape:

North America

Europe

Asia Pacific

Latin America

The Middle East and Africa

Major Key Players in the Global Fiber Optics Market Are:

Fujikura Ltd

Corning Inc

Finisar Corporation

Sumitomo Electric Industries Ltd

Nexans S.A.

Reflex Photonics

TATA Communications

Sterlite Technologies Ltd

Furukawa Electric Co. Ltd

The Prysmian Group

The Covid-19 Impact Analysis:

The global effects of the coronavirus 2020 (COVID-19), which began to affect the 5G Fiber Optic Cable industry in 2020, are already being felt since the December 2020 COVID-19 virus epidemic.

COVID-19 has three major effects on the global economy. It directly affects production and demand, creates supply chain disruption, and impacts financial markets and firms. Wuhan is home to Fiberhome and YOFC, as well as Accelink. Together, they account for 25% of global optical fiber production. The initial phase of COVID-19 was characterized by weak demand, but the production rate was higher than usual.

Additionally, the global amount of optical cables installed in 2018 was lower than the previous year, for the first time since 2002. In 2018, the quantity of optical cable installed was more than 500 million fiber-km. However, it dropped to below 480 million in 2019. The situation could get worse in certain applications due to the after-pandemic and pandemic situations.

The Global Fiber Optics Market Report Highlights:

The Submarine Optical Fibre Cable (OFC) connecting to Chennai and Port Blair inaugurated by Prime Minister Narendra Modi. In 2018, he laid the foundation stone for this project at Port Blair. The connectivity via submarine fiber cable will make it possible to deliver faster and better mobile and landline telecom services to Andaman and Nicobar Islands. 

Enhanced broadband and telecom connectivity will increase tourism and job creation in the Islands. This will give life and energy to the economy and help raise living standards. Due to the new network, Andaman and Nicobar will receive faster and better quality mobile and landline telecom services. This is on par with other parts.

Fiber optic cables are being selected for their flexibility, security, and bandwidth capacity to handle large amounts of backhaul traffic. They also support advanced technologies such as 5G, Big Data and IoT, which heavily rely on real-time data collection, transfer, and analysis. The launch of 5G will increase the capacity and reduce latency directly to networks.

The U.S. market value of Global Market Size is estimated to be over 13.9% in 2020, While China is projected to grow at a CAGR of 11.1% from 2020 to 2027.

In 2020, the market for Fiber Optics in the United States was expected to reach US$642.8 million. China currently holds 13.89% of the global market. China, second in the world's largest economy, is expected to have a market value of US$2.5 billion by 2027, a growth rate of 11.1% through 2027.

Japan and Canada are noteworthy geographic markets, among others noteworthy geographic markets. They both forecast growth of 6.9% and 7.6% over the 2020-2027 timeframes. Germany will grow at 7.8% CAGR in Europe, while the rest of the European market will reach US$2.5 billion by 2027.

China is dominant in the market of Asia Pacific. China has an extreme density of optical fiber networks across the country and is investing immensely in the optical fiber infrastructure.