Fiber optics market size to reach $11.18 bn in 2030

The global fiber optics market size is expected to reach USD 11.18 Billion in 2030 and register a revenue CAGR of 9.3% over the forecast period, according to the latest report, according to Research and Markets.

The advent of fiber optics has disrupted the telecommunication industry, providing high-speed data transfer with low power consumption. The report further mentioned that the outbreak of COVID-19 has created an unprecedented demand for fiber optics in the healthcare sector for real-time patient monitoring and other applications, which is further expected to drive the growth of the market over the forecast period.

The rising demand for high-speed Internet and the increasing adoption of cloud services are some of the factors that are expected to drive the growth of the fiber optics market. The increasing investment by various government bodies in the deployment of fiber optics is another factor that is expected to drive the growth of the market. The rising demand for data centers and 5G is expected to create new opportunities for the fiber optics market over the forecast period.

Fiber optic cable consists of a core of glass or plastic, surrounded by one or more layers of cladding material. The cladding reflects light back into the core, keeping it from escaping. This makes it possible to send signals over long distances without losing the signal strength. Fiber optics enables video-on-demand, computer networking and the delivery of digital content at very high speeds over long distances. The technology is used in two ways: In telecommunications, fiber optics has largely replaced copper wire as the medium for carrying voice, data and video traffic over long distances. In cable television (CATV), fiber optics are used to deliver digital television and other services to homes and businesses.

Increasing deployment of fiber optics in telecommunication and data communications is fuelling the growth of the fiber optics market. Fiber optics are used for transmission of light signals over long distances and have low attenuation as compared to metal wires. The advantages of fiber optics over traditional copper wires include higher bandwidth, less weight, no leakage of electromagnetic energy, and resistance to environmental conditions such as humidity, heat, and corrosion.

Fiber optics are used in various applications such as telecommunication, data communication, cable television, medicine, sensing, and lighting. The telecommunication application segment is expected to grow at the highest CAGR of 9.6% between 2016 and 2022, due to increasing demand for high-speed broadband services such as 4G/LTE and 5G.The data communication application segment is projected to grow at the second-highest CAGR of 9.4% between 2016 and 2022, due to the increasing demand for higher data transfer rates in data centers and enterprise networks.

Key highlights

• On January 3, 2022, Cable One Inc. (NYSE: CABO) announced that it has acquired fiber- optic services provider Clearwave Communications for an undisclosed sum. The move will strengthen Cable One’s existing broadband footprint and help the company offer its customers even faster internet speeds.
• Based on type, the fiber optics market has been classified into single-mode and multi-mode. The single-mode segment is expected to grow at a steady pace during the forecast period due to its increasing adoption in long-distance applications such as data centers and enterprise networks.
• The healthcare industry is one of the major end-users of fiber optics, and the market for fiber optics in healthcare is expected to grow at a CAGR of 9.8% during the forecast period. The demand for fiber optics in healthcare has increased due to the need for real-time patient monitoring and data transmission. The increasing adoption of connected devices and the growing demand for remote patient monitoring are some of the factors that are expected to drive the growth of the fiber optics market in healthcare over the forecast period.
• The automotive industry is another major end-user of fiber optics, and the market for fiber optics in automotive is expected to grow at a CAGR of 8.9% during the forecast period. The demand for fiber optics in automotive has increased due to the need for high-speed data transmission and connectivity. The increasing adoption of connected and autonomous vehicles is one of the major factors that are expected to drive the growth of the fiber optics market in automotive over the forecast period.
• The Asia Pacific region is expected to be the largest market for fiber optics, with a market share of 39.0% in 2030. The region is expected to grow at a CAGR of 9.4% during the forecast period. The increasing investment by various government bodies in the deployment of fiber optics is one of the major factors that are expected to drive the growth of the market in the region. The rising demand for data centers and 5G is expected to create new opportunities for the fiber optics market over the forecast period.
• The North American region is expected to grow at a CAGR of 9.1% during the forecast period. The region is expected to be the second-largest market for fiber optics, with a market share of 38.4% in 2030. The increasing investment by various government bodies in the deployment of fiber optics is one of the major factors that are expected to drive the growth of the market in the region.

CT Bureau