Global fiber optic components market to reach $32.5 billion by 2026

A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, today released its report titled “Fiber Optic Components – Global Market Trajectory & Analytics”. The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.

Global Fiber Optic Components Market to Reach $32.5 Billion by 2026
Fiber optic technology is embraced all over the world due to its innate advantages over the conventionally used copper. Glass optical fiber has high tensile strength as compared to all other mediums. The extremely high pull strength of 150-plus pounds for two-fiber cable is about 8 times the strength of Category 5 unshielded twisted-pair copper. Fiber is also comparatively smaller and lighter than copper, rendering it easier to handle and needing less space in floors, ceilings and narrow ducts. Field termination, splicing and testing of fiber-optic cables and connectors is easier, discarding the traditional installation of copper. Fiber optic technology has found application in telecommunications, computer links, video transmissions, defense, and select industrial, medical, and scientific areas. Fiber optic components essentially consist of active equipment that are used to install and operate the fiber optic networks and passive equipment which form a part of other standard equipment to be used in numerous applications. Amid the COVID-19 crisis, the global market for Fiber Optic Components estimated at US$19.8 Billion in the year 2020, is projected to reach a revised size of US$32.5 Billion by 2026, growing at a CAGR of 8.2% over the analysis period. Transmitters / Receivers, one of the segments analyzed in the report, is projected to grow at a 8.6% CAGR to reach US$15.5 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Connectors segment is readjusted to a revised 9% CAGR for the next 7-year period. This segment currently accounts for a 25.2% share of the global Fiber Optic Components market.

The U.S. Market is Estimated at $4.4 Billion in 2021, While China is Forecast to Reach $8.5 Billion by 2026
The Fiber Optic Components market in the U.S. is estimated at US$4.4 Billion in the year 2021. The country currently accounts for a 20.3% share in the global market. China, the world second largest economy, is forecast to reach an estimated market size of US$8.5 Billion in the year 2026 trailing a CAGR of 9.9% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 6.4% and 7.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6.9% CAGR while Rest of European market (as defined in the study) will reach US$9.2 Billion by the close of the analysis period.

The market is expected to witness strong growth in the coming years, driven by the continuous rise in demand for higher bandwidth and the ensuing need for fiber-based broadband, robust growth in mobile Internet, as well as the strengthening FTTx related deployments, specifically in developing Asian countries, among others. Investments in Fiber-to-the-Home/Building (FTTH/B) will continue to remain crucial to the market’s growth. Liberalization of regulatory regimes in several countries and support from government for deployment of FTTH/B bodes well for the market. Globally, the number of fiber-connected homes is expected to increase strongly, driven by significant FTTH deployments by leading operators in North America, Asia Pacific and the EMEA. The use of broadband connections to enable teleworking, telecommuting from home, home security, and home automation services is driving home developers to deploy fiber networks. The emergence of FTTH as the only solution to fulfill the current and future data demands of a wired home network is poised to indirectly benefit the market for fiber optic components. FTTB architecture is mostly deployed in regions such as South Korea, Hong Kong, and Taiwan with high population concentrations in urban areas dominated by apartment buildings. Also, consumers’ income level has a direct correlation to the type of optical access deployment. While demand for fiber optics is surging, the high costs associated with the cables is deterring widespread customer adoption. Also, the complexity involved in connecting various optic fibers, along with the difficulty associated with repeaters installation, is hindering market growth.

Amplifiers Segment to Reach $3.8 Billion by 2026
Fiber optic amplifiers are devices that are used to boost the power of optical signals, thereby extending the distance they can travel over the fiber before regeneration of the signal is required. Different types of amplifiers are used to suit different applications basing on the purpose and the network, viz., single mode fiber network, bi directional, dispersion shifted/non-dispersion shifted fiber optic networks. Types of amplifiers include, the Optical Line/Post Amplifier, the Bidirectional Optical Line Amplifier and built in amplifiers that are built inside transmitters. In the global Amplifiers segment, USA, Canada, Japan, China and Europe will drive the 6.8% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$1.8 Billion in the year 2020 will reach a projected size of US$2.9 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$666.1 Million by the year 2026, while Latin America will expand at a 7% CAGR through the analysis period. PR Newswire