Fiber optic test equipment market to be worth $923 million in 2023

The fiber optic test equipment market is to be worth US$ 923 million in 2023 and is expected to reach US$ 1,779.9 million by 2033, with a 6.8% CAGR between 2023 and 2033.

According to market research experts at FMI, the size of the fiber optic tools market accounted for US$ 702.2 million in 2018 to US$ 865.1 million in 2022.

The adoption of fiber optics is expanding as wireless technology is increasingly adopted in many end-user sectors. One of the key industry trends gaining pace in the fiber optic test equipment market over the next few years is going to involve the expanded adoption of fiber optic test equipment as a result of the increasing acceptance of wireless technologies.

The growth in fiber cable networks and fiber optic cable types may augment the fiber optic test equipment demand in the market. To provide services efficiently, the increased need for real-time operations necessitates continual testing of insertion loss and bandwidth.

Increasing need opens up significant opportunities for the fiber optic test equipment industry.

• In 2022, fiber optic test equipment sales were worth US$ 865.1 million.
• Given the strong demand for tier-2 certification criteria and rising investment in 4G/5G rollout, optical time domain reflectometers (OTDR tester) may continue to be favored equipment.
• The key factors driving the fiber optic test equipment demand are increasing data usage rates and network bandwidth expansion.
• Telecommunications service providers may continue to be the principal end-user until 2030.
• Throughout the forecast timeframe, the East Asia fiber optic test equipment industry may outperform North America.

The advent of 5G technology may speed up development, which could lead to an increase in demand for fibre optic test equipment in the upcoming years. Because of the ongoing construction of the infrastructure necessary to support 5G technology, governments in developing nations like China and India are supporting testing operations in telecom base stations.

The growing need for fibre optic test equipment from network service providers for the 5G technology to function properly has propelled the growth of the market for fibre optic testing equipment in recent years. Network test equipment vendors now have more opportunities thanks to the rising demand for fibre optic test equipment.

High-speed Data Transfer Demand May Drive Market Expansion

The importance of fibre optic tools for various network mediums has grown as the telecommunications industry around the world accelerates its shift to fibre optic cables to achieve high-speed data transfer. These tools are used for inspection, on-site troubleshooting of network systems, as well as research and development stages across the industrial sector.

The pandemic has allowed end users to discover and rediscover the benefits of the digital ecosystem. End users must install resilient cabling and network equipment if they want to fully benefit from this connectivity.

To maintain link quality as connectivity speeds rise, cable performance becomes increasingly crucial, opening the door for a variety of fibre optic cable types.

Numerous fibre optic tool companies will probably look into cutting-edge fibre optic solutions over the coming years, including potential applications in the maritime and healthcare sectors.

Governments all around the world are currently undertaking initiatives like fiber-optic networked smart city projects to ensure the proper operation of Internet of Things (IoT) technologies.

• According to the United Nations (UN), more than 68% of the global population is predicted to live in cities by 2050, fuelling additional ‘smart city’ schemes around the world.

As long as the present trends that are fueling the current boom in fibre optics persist, the global market for fibre optic test equipment is expected to grow significantly over the next years, offering several lucrative prospects.

Advancements in Connectivity and Telecom Industry Accelerate the Market Growth

The expansion of fixed broadband subscriptions and Long-Term Evolution (LTE) network penetration has lately picked up speed, and market trends for fibe optic tools are anticipated to remain strong over the course of the projected period.

Due to COVID-19, customers’ lifestyles have undergone a significant change that has made them increasingly reliant on connectivity for ICT (information and communication technology).

• According to FMI, mobile operators spend roughly US$ 160 billion in 2020 to reach their 5G networks. Moreover, till 2024, fixed broadband connection growth is likely to increase by 3% annually.

Fibre optics have made it possible to deploy and develop 5G wireless connectivity. Heavyweights in the telecom sector rely on the countless kilometers of state-of-the-art fibre optic cables that link 5G devices around the globe.

CT Bureau