Fiber Optics Market Size, Share & Trends Analysis Report By Type (Single Mode, Multimode, Plastic Optical Fiber (POF)), By Application, By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The global fiber optics market size was valued at USD 5.41 billion in 2015 and is expected to gain traction over the forecast period. The global fiber optics market is majorly driven by the pursuit of high bandwidth communication and growing opportunities in the healthcare sector along with increasing government funding in the development of network infrastructure.

The fiber optics industry presents promising growth prospects throughout the forecast period in view of a combination of factors namely increasing investments and research undertaken by prominent fiber optic cable manufacturers in the industry to develop and upgrade the fiber optics technology application arena. In addition, the growing awareness of the benefits of adopting the technology is further propelling market growth.

Fiber optics technology has gained prominence over the past few years, owing to persistent research & development activities and the escalating demand for high bandwidth fiber optic cable for communication and data services. The global market for the overall fiber optics segment, which includes fiber optic connectors, fiber optic sensors, fiber optic broadband and fiber optic cables, is expected to grow exponentially over the forecast period.

The demand for bandwidth-intensive, high-speed, high-data rate applications has shifted the global fiber optics market, dramatically, across the globe. Deployments of optical fiber networks are drastically expected to drive the market for fiber optics over the forecast period. An optical fiber system, as a whole, is comprised of a variety of components such as optical cables, transmitters, receivers, and others. Installation of the entire system is a labor-intensive process, especially, the installation of the network, for underground and undersea connections, is one of costliest and tedious procedures.

The global fiber optics market is anticipated to witness a substantial growth over the forecast period. The high demand for optical communication and sensing applications for diverse purposes provides avenues for industry growth. Furthermore, the growing demand for cost-effective, power-efficient, and high-level integration of IT infrastructure is expected to impel market demand in the next few years.However, factors such as capital investment, used in the development of the new fabrication technologies, may pose a challenge to the market demand over the forecast period.

Type Insights

Based on fiber optic types, the market has been segmented into single mode, multimode, and Plastic Optical Fiber (POF). The multimode fiber optic segment dominated the market in terms of revenue in 2015 and was valued at USD 2.86 billion.

The multimode and single mode fiber type segments are expected to witness continuity in growth and dominate the market over the estimated period of time. However, factors such as capital investment made for the development of new fabrication technologies may pose a challenge to market demand over the forecast period.

The single-mode fiber optics segment is anticipated to have considerable growth over the projected period. Single mode fiber 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 rate over the forecast period. POF differs from its single and multimode counterparts on the basis of 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.

Application Insights

Based on applications, the market has been segmented into telecom, oil & gas, military & aerospace, BFSI, medical, railway, and other applications. The telecom application would be the largest segment in terms of revenue and is anticipated to dominate the fiber optic application arena in terms of size by 2025.

Medical and military & aerospace applications are poised to witness a significant growth rate which is attributed to the increasing adoption of optic technology devices across these segments. Stringent regulations and standards being imposed by the government regulating authorities and medical associations are further helping the fiber optics market to flourish in the medical sector, eventually driving the global fiber optics market to grow at a notable pace over the estimated time.

Currently, the growth prospects for fiber optics technology in the telecommunications segment appears to be promising due to the growing adoption of the technology in communication and data transmission services. Fiber optics enables high-speed data transfer services in both small and long-range communications. Furthermore, the increasing cloud-based applications, audio-video services, and Video-on-Demand (VoD) services further stimulate the demand for fiber optic installations.

The 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 provide an opportunity to experience enhanced track repairing with great ease, at a much cheaper price. The military and aerospace market have moderate penetration. However, it is expected to witness high growth in the future, with its market share rising over the forecast period.

The technology is under constant R&D to develop low-cost applications and technological solutions for the mass market. Fiber optics has enormous potential to be incorporated into a wide range of applications such as the healthcare, railway, aerospace & defense, and oil & gas sectors.

Regional Insights

In 2015, the North American region dominated the global fiber optics market with a market share of 31.1%. The Asia Pacific regional market is spearheading revenue growth owing to increased technological advancements due to their large-scale adoption in IT & telecommunication and administrative sector.

The growth in the region can be attributed to the increasing application areas in the fiber optics technology sector. The high penetration rate of the manufacturing sector and the expanding IT & telecommunication sector across the Asia Pacific region are strengthening the market’s hold in the region.

Moreover, the increasing application of fiber optics in the medical sector is also catapulting growth across countries such as China, Japan, and India, thus propelling the overall fiber optics market to grow at a significant rate.

Governments of developed countries, such as the U.S., the UK, Germany, China, Japan, and others, are heavily investing to enhance their security infrastructures on individual and country levels. Awareness regarding the benefits of the technology is growing rapidly in the developing economies, which is expected to strengthen their position globally.

Fiber Optic Market Share Insights

The key industry participants of the market include AFL (U.S.), Birla Furukawa Fiber Optics Private Limited (India), Finolex Cables Ltd. (India), Yangtze Optical Fiber, and Cable Joint Stock Limited Company (China). The widespread use of the internet, where fiber optics plays a significant role, has instigated an increased adoption of fiber optic cables and systems in the telecommunication and data communication segments.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the fiber optics market report based on type, application, and region:

• Type Outlook (Revenue, USD Million; 2014 - 2025)

  • Single Mode

  • Multimode

  • Plastic Optical Fiber (POF)

• Application Outlook (Revenue, USD Million; 2014 - 2025)

  • Telecom

  • Oil & Gas

    • Material Sensing

    • High Bandwidth Communications

    • Others

  • Military & Aerospace

    • Secure Communication

    • Weapon System

    • Surveillance System

    • Optical Computing

    • UAV

    • Military Vehicle Sensing

  • BFSI

  • Medical

  • Biomedical Sensing

  • Minimal Invasive Surgery

  • Imaging

    • Endoscopy

    • MRI

    • CT

    • PET

    • X-Ray

    • Others

  • Railway

    • Railway Maintenance

    • Speed Monitoring

    • Dynamic Load Calculation

  • Others

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • China

    • Japan

    • India

  • South America

    • Brazil

  • MEA