Free space optic communication market to hit $4.8 bn by 2031
The global free space optic communication industry generated $347.5 million in 2021, and is anticipated to generate $4.8 billion by 2031, witnessing a CAGR of 31.3% from 2022 to 2031, according to the report by Allied market Research.
Prime Determinants of Growth
The increase in demand for high-speed data transmission in military sector, increase in the development of private LTE networks, and the necessity for secured and high-speed optical communications drive the growth of the global free space optic communication market. Moreover, the widespread rise in adoption of 5G technology presents new opportunities in the coming years.
- The outbreak of the Covid-19 pandemic had a negative impact on the global free space optic communication market, especially in the initial period of lockdown.
- With governments of several nations imposing and extending lockdowns, production and manufacturing facilities across the globe had been shut down, leading to crisis and unavailability of workforce.
- Furthermore, the outbreak of the pandemic caused severe disruptions in the global supply chain, thereby creating a significant gap in the supply chain. The economic impact of the pandemic had been disruptive. Key players operating in the free space optic communication industry temporarily witnessed a slowdown, owing to lack of availability of raw materials.
- However, the market started recovering from 2021 and will remain in the growth stage during the forecast period.
The Ground Segment to Maintain its Leadership Status Throughout the Forecast Period
Based on platform, the ground segment held the highest market share in 2021, accounting for more than two-fifths of the global free space optic communication market, and is estimated to maintain its leadership status throughout the forecast period. Free space optic technology plays a vital role in establishing communication links between ground platforms, including buildings, towers, and other fixed structures. FSO communication provides high-speed, secure, and reliable communication links between different ground platforms, enabling data transmission, video streaming, and other applications. However, the space segment is projected to manifest the highest CAGR of 32.49% from 2022 to 2031. Free space optic communication can be used for communication links between space platforms, such as space stations, space habitats, and other space structures. In space communication, free space optic technology can provide an alternative to traditional radio frequency (RF) communication, which has limitations in terms of bandwidth, power consumption, and interference.
The Transceiver Segment to Maintain its Leadership Status Throughout the Forecast Period
Based on component, the transceiver segment held the highest market share in 2021, accounting for nearly half of the global free space optic communication market, and is estimated to maintain its leadership status throughout the forecast period. The performance of the transceiver is critical to the overall performance of the free space optic communication system. Thus, major players are investing heavily in developing advanced transceivers to gain a competitive advantage in the market. However, the receiver segment is projected to manifest the highest CAGR of 32.52% from 2022 to 2031. The receiver plays a significant role in free optic communication technology and the performance of the receiver is critical to the overall performance of the free space optic communication system.
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