Fiber Optics Market Size, Share & Trends Analysis Report By Type (Single Mode, Multimode, Plastic Optical Fiber), By Application (Telecom, Military & Aerospace, Medical), And Segment Forecasts, 2019 - 2025

Industry Insights

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.

Fiber Optics Market Trends

Fiber optic systems are used to transmit data, voice, and images ranging from few meters to a number of kilometers, with ease. The telecommunication and IT sectors are the most important sectors holding major applications. The evolution of fiber-rich infrastructure has stupendously boosted the demand for fiber optic cables.

The telecommunication industry has been experiencing continuous advancements leading to a variety of upgradations and technological improvisations. Several innovations are being made across the telecom industry, paving way for a bandwidth-intensive communication. The growing demand for fiber optic cables can be accredited to the rising bandwidth needs across the carrier and enterprise networks.

As technologies are advancing across the telecom sector, the deployment of broadband network architectures is tremendously increasing. Along with the demand rising through the broadband network infrastructures, the demand for fiber optic cables is being driven by the growing demand for high-speed wired internet. The niche applications such as gaming, media, and video, which require a considerably high-speed internet connection for a smooth and satisfactory performance, consume more data. Consumers across the globe are attracted toward the devices that enable high data consumption, owing to the increasing interest in the entertainment and communication needs. This is favoring the overall fiber optics market to rapidly expand over the forecast period.

Additionally, the advantages of fiber optic cables, which are influencing the migration from copper cables to optical fibers, are low costs, high data carrying capacities at faster rates, suitability for digital data transmission, low-power requirements, flexibility, and durability. Moreover, the risk of signal degradation is extremely negligible in fiber optic cables, which is favoring the technology to be adopted at an extensive pace.

Optical fibers are flexible transparent fiber cables made up of high-quality glass, plastic, and silica that operate on the principle of total internal reflection of light. The intensive research and development across the fiber optics technology have led to several innovations, enabling a variety of applications of the optical fibers in the oil & gas, medical, utilities, and defense sectors. Fiber optics has exciting new applications across the medical industry and is mainly used for light conduction and illumination, flexible bundling, and laser delivery systems.

Product Type Insights

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.

Application Insights

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.

Regional Insights

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.

The awareness is growing amongst the rapidly developing economies that aim to strengthen their holds on the global level. This is eventually necessitating the increasing funding for technologies, prominently across the fiber optics that would enhance the telecommunication sector infrastructure with better security measures. Moreover, the demand for high-speed and high data transmission needs, arising from the military & defense sectors, oil & gas industries, and aerospace divisions, is helping the fiber optics market to gain the market share at a significant rate. This is further driving the overall global market by nourishing the technology over the estimated duration.

China is the largest consumer of fiber optic preform across the world. In July 2018, the government of China announced the extension of imposing anti-dumping fiber optic preform originating from the U.S. and Japan with an implementation period of 5 years. The movement encourages the local manufacturers to invest more into R&D and production of preform and protects the Chinese fiber optic preform companies. 

Fiber Optics Market Share Insights

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.

Report Scope

Segments Covered in the Report

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)

  • Single Mode

  • Multi-mode

  • 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

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • Japan

    • India

  • South America

    • Brazil

  • Middle East and Africa