The report “Fiber Optics Market by Cable Type (Single mode, and Multi-mode), Optical Fiber Type (Glass and Plastics), Application (Telecom, Premises, Utility, CATV, Military, Industrial, Sensors, Fiber Optic Lighting, Security, Metropolitan) – Global Forecast to 2021″, The global fiber optics market was estimated to be valued at USD 3.13 Billion in 2016 and is projected to reach USD 5.00 Billion by 2021, at a CAGR of 9.8%.
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The global market for fiber optics is expected to witness healthy growth from 2016 to 2021. Factors contributing towards the growth of this market are the increasing demand for the Internet and its applications in the emerging economies of the Asia-Pacific; growing FTTx networks; and the growing telecommunications industry in the Middle East & Africa. Growing population and infrastructural developments in the Middle East & Africa have led to the increasing use of fiber optics for various applications. Economic growth, followed by heavy investments in applications such as telecom, premises, utility, CATV, industrial, military, sensors, and fiber optics lighting are expected to drive the fiber optics market in the region. Furthermore, the growing population along with industrial alliances is expected to support the growth of the fiber optics market significantly in the region.
The global fiber optics market has a large number of market players; however the market is led by some of the major players, such as Corning Incorporated (U.S.), Prysmian Group (Italy), AFL Global (U.S.), Finisar Corporation (U.S.), Leoni AG (Germany), YOFC (Shanghai) Co. Ltd. (China), Sumitomo Electric Industries Ltd. (Japan), Furukawa Electric Co., Ltd. (Japan), Optical Cable Corporation (U.S.), and Hitachi Cable, Ltd (Japan), among others.
Most of these companies are leaders in the manufacture of fiber optics and its equipment. These companies are focused on the new product launches and mergers & acquisitions strategies to achieve economies of scale, product innovations, and expansions in order to capture and strengthen their market shares.
Market players are concentrating on increasing their production capacities and developing cost effective technologies. The companies are investing in setting up new facilities mainly in emerging regions so as to increase their global reach. All these developments are due to the increasing demand for advanced fiber optics based products from applications such as telecom, premises, CATV, utility, military, sensors, and fiber optic lighting.
New product developments, expansions, and mergers & acquisitions are the key strategies that have been adopted by the major fiber optics manufacturers in the recent past. The top players in the fiber optics market are adopting these strategies for better penetration and expansions of their businesses into the untapped and emerging regions. These new ventures are expected to help the companies to satiate the growing demand for fiber optics in several applications. Corning Inc. (U.S.) and AFL Global (U.S.) are among the market players who adopted the new product launches strategy in order to acquire a greater market share by supplying products for various end-use applications.
Corning Inc. (U.S.) is amongst the leading suppliers of fiber optics equipment. The company adopted strategies such as new product launches and mergers & acquisitions to maintain its premium position in the market. For instance, it completed the acquisition of Samsung Electronics (South Korea) to expand its market in the Asia-Pacific, in November 2015.
Similarly AFL Global (U.S.), a subsidiary of Fujikura Global (Japan) is also amongst the leading players in the fiber optics market. It has sustained its market position by launching new and innovative fiber optics solutions across various locations. For instance, it launched a series of new fiber optics based products under the brand name, Micro-Tactical Cables which are designed to withstand high tensile loads, crushing forces, repeated impacts, and extreme temperatures.
The global fiber optics market was estimated to be valued at USD 3.13 billion in 2016 and is projected to reach USD 5.00 billion by 2021 at a CAGR of 9.8%. The market is expected to be mostly driven by the increasing Internet applications of fiber optics such as video streaming, Over-The-Top Content (OTT), and the Internet of Things (IoT). Rising quality standards in optical fiber cable manufacture and advances in technologies are also supporting the growth of the fiber optics market.
The fiber optics market has been classified into two key segments, namely, single mode and multi-mode, on the basis of cable type. The market for the single mode cable type is expected to account for the largest and fastest growing cable type from 2016 to 2021. The single mode cable has a higher transmission rate that can cover longer distances, due to which, it is used in applications such as CATV and telecom, which requires transmission over long distances along with high speed and a low attenuation rate.
On the basis of optical fiber type, the fiber optics market is segmented into two key segments, namely, glass optical fiber and plastic optical fiber. Glass optical fiber is projected to be the largest and the fastest growing optical fiber type from 2016 to 2021. Its unique properties, such as resistance to mechanical stress, high temperature, chemical substances, and noise & vibrations is driving its market in applications such as telecom, CATV, high-speed LANs, and sensors.
The telecom application is expected to account for the largest market share in the fiber optics market during the forecast period. It is used for various purposes such as point-to-point communication, entertainment, delivery, and access to Internet-enabled services, critical communication, and news & infotainment, among others. The telecommunications industry is witnessing rapid technological developments through advancements in consumer electronic devices such as smartphones, laptops, and tablets. Factors such as an increasing Internet user base, low-cost services offered by service providers, inexpensive communication devices, subscribers for various wireless as well as fixed-point communications are leading to the growth of the fiber optics market. The Asia-Pacific is estimated to have accounted for the largest share of the fiber optics market in the telecom application in 2016 and is expected to continue to lead during the forecast period. The massive population base of the Asia-Pacific countries such as China and India is one of the major drivers for growth in the telecom market in the region.
The Asia-Pacific region is projected to lead the fiber optics market by 2021 and is estimated to have accounted for the highest share of the total market in 2016. Market growth in the region is mostly attributed to China, as it is the largest fiber optics market globally. The large consumer markets and lower cost of production in India and China are driving the fiber optics market in the region. Moreover, rapid urbanization, demand for smart devices, and the reviving network industry in countries such as Malaysia, Thailand, and Indonesia are expected to support the growth of the fiber optics market in Southeast Asia during the forecast period.