The global fiber optics market size was valued at USD 6.5 billion in 2018 and is projected to exhibit a CAGR of 4.6% from 2019 to 2025. The technology is one of the modern-day innovations, which has evolved with time, owing to rigorous studies carried out by researchers and scientists across the globe through extensive research and development. The technology has proved to be a boon across a wide range of applications and has increased the number of advancements over time.
Growing demand for high bandwidth communication is boosting the growth of the market. For instance, these systems are used to transmit data, voice, and images ranging from a few meters to several kilometers with ease. Telecommunication and IT are the key sectors with a wide range of applications. The evolution of fiber-rich infrastructure has stupendously boosted the demand for these cables. Additionally, technological advancements in the telecom sector have increased the deployment of broadband network architectures. Fiber to the Home (FTTH), Fiber to the Building (FTTB), Fiber to the Cabinet (FTTC), and Fiber to the Premise (FTTP) are a few prominent broadband networking architectures that necessitate the large-scale deployment of fiber optic networks, driving demand for fiber optic cables.
The market is anticipated to present promising growth prospects throughout the forecast period given a combination of factors, such as increasing investments and research undertaken by prominent manufacturers to develop and upgrade the technology application arena. Also, growing awareness regarding the benefits of this technology is further propelling the market growth.
Optical fibers are flexible transparent cables made up of high-quality glass, plastic, and silica that operate on the principle of total internal reflection of light. Intensive R&D fiber optics technology has led to several innovations, enabling a variety of applications in the oil and gas, medical, utilities, and defense sectors. Fiber optics have a wide variety of new applications in the medical industry and is mainly used for light conduction and illumination, flexible bundling, and laser delivery systems.
Few major applications across the healthcare and medical industry include X-ray imaging, ophthalmic lasers, laboratory, and clinical diagnostics, surgical instrumentation, surgical endoscopy and microscopy, and light therapy. Rising demand from the medical industry can be attributed to a growing preference for minimally invasive surgeries. Along with technological advancements and advanced medical treatment methods, patients also demand the latest and advanced medical treatments, paving the way for advanced and skilled medical practices. Therefore, this technology is proving to be a boon for the healthcare sector.
In 2018, the multimode segment led the fiber optics market in terms of revenue and was valued at USD 3.4 billion. The multimode and single product type segments are expected to witness continuity in growth and lead the market over the forecast period.
The single-mode segment is anticipated to witness considerable growth over the projected period. This product type is used for long-distance installations ranging from 2 meters to 10,000 meters. It offers lower power loss in comparison to its multimode and plastic optic counterparts. However, it is costlier than multimode and plastic optical fibers.
Plastic Optic Fiber (POF) is anticipated to witness high growth over the forecast period. POF differs from its single and multimode counterparts based on the core materials used in POF cable construction. While single and multimode fiber optics have a glass core, POF cables have a polymer core. This offers a dynamic application portfolio, along with cost-saving.
In 2018, telecom accounted for the largest market share in terms of revenue and is anticipated to continue its dominance in terms of size by 2025. Telecommunication is anticipated to present promising growth prospects due to the growing adoption of technology in communication and data transmission services. Fiber optics enable high-speed data transfer services in both small and long-range communications. Furthermore, increasing cloud-based applications, audio-video services, and Video-on-Demand (VoD) services stimulate demand.
Medical and military and aerospace application segments are poised to witness significant growth, attributed to increasing adoption of optic technology devices. Stringent regulations and standards imposed by the regulatory authorities and medical associations are further helping the market to flourish in the medical sector, eventually driving the growth.
Railway segment would be initially hesitant to make huge investments in fiber optic application installations but is predicted to witness immense growth prospects during the forecast period. The railway track maintenance achieved by fiber optics provides an opportunity to experience enhanced track repair with great ease at a cheaper price. Military and aerospace sector has moderate penetration. However, it is expected to witness high growth soon in terms of market share.
In 2018, North America led with a 29.7% market share in terms of revenue. Asia Pacific is spearheading revenue growth owing to technological advancements and large-scale adoption of the technology in IT and telecommunication and administrative sector. The regional growth can be attributed to increasing application areas. High penetration of the technology in the manufacturing sector and expanding the IT and telecom sectors across the Asia Pacific are strengthening the regional market hold. Moreover, increasing the application of fiber optics in the medical sector is catapulting growth across countries, such as China, Japan, and India, thus propelling the overall demand at a significant rate.
Governments of developed countries such as the U.S., U.K., Germany, China, and Japan are heavily investing in security infrastructure at country levels. Awareness is growing among the rapidly developing economies that aim to strengthen their hold at the global level. This is eventually necessitating the funding for technologies, majorly across the fiber optics that would enhance the telecommunication sector infrastructure with better security measures.
Key market players include Corning Incorporated, Optical Cable Corporation (OCC), Sterlite Technologies Limited, OFS Fitel, LLC, Prysmian Group, AFL, Birla Furukawa Fiber Optics Limited, Finolex Cables Limited, and Yangtze Optical Fiber and Cable Co., Ltd. (YOFC).
Manufacturers are introducing new products and expanding their manufacturing facilities across the globe. For instance, in January 2018, Corning, Inc. opened a new manufacturing facility for fiber optic cable in Newton, North Carolina. The newly opened manufacturing facility would help meet the on-going demand for optical fiber and cable across the globe. In March that year, the company launched a new product Corning TXF Optical Fiber that would enable high data-rate transmission over longer spans and extended reach for improved network flexibility and lower network cost.
The base year for estimation
Actual estimates/Historical data
2014 - 2017
2019 - 2025
Revenue in USD Million & CAGR from 2019 to 2025
North America, Europe, Asia-Pacific, South America, and MEA
U.S., Canada, Mexico, U.K., Germany, France, China, Japan, India, and Brazil
Revenue forecast, company share, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global fiber optics market report based on type, application, and region:
Type Outlook (Revenue, USD Million, 2014 - 2025)
Plastic Optical Fiber (POF)
Application Outlook (Revenue, USD Million, 2014 - 2025)
Oil & Gas
High Bandwidth Communications
Military & Aerospace
Military Vehicle Sensing
Minimal Invasive Surgery
Dynamic Load Calculation
Regional Outlook (Revenue, USD Million, 2014 - 2025)
Middle East and Africa
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The exponential spread of COVID-19 worldwide has had an adverse impact on the semiconductor industry with manufacturing facilities temporarily shut, leading to a significant slowdown in the production. The outbreak could result in disruption across the ecosystem with several supply chain participants shifting their production facilities outside China, thereby reducing their over-reliance on China. Lockdowns imposed by the governments in the wake of the Covid-19 outbreak has not only affected manufacturing but also hauled consumer demand for semiconductor devices. Our analysts predict a decline in semiconductor revenue by over 1% in 2020 as compared to that in 2019. The report will account for Covid19 as a key market contributor.