Report : Fiber Optic Components Market Forecast to 2027 - COVID-19 Impact and Global Analysis by Type (Cables, Active Optical Cables (AOC), Amplifiers, Splitters, Connectors, Circulators, Transceivers, and Others); Data Rate (10G, 40G, 100G, and above 100G); Application (Communications, Distributed Sensing, Analytical and Medical Equipment, and Lighting) and Geography
According to our latest market study on “Fiber Optic Components Market to 2027 – COVID-19 Impact, and Global Analysis and Forecast – by Type (Cables, Active Optical Cables (AOC), Amplifiers, Splitters, Connectors, Circulators, Transceivers, Others); Data Rate (10G, 40G, 100G, above 100G); Application (Communications, Distributed Sensing, Analytical and Medical Equipment, Lighting and Geography,” the market was valued at US$ 16,546.7 million in 2019 and is projected to reach US$ 39,150.3 million by 2027; it is expected to grow at a CAGR of 11.27% from 2020 to 2027.
Asia Pacific dominated the fiber optic components Market in 2019 with a share of 35.8% followed by North America. The fiber optic components market in APAC is analyzed based on historical, current, and future trends across the region. The fiber optic components market in APAC is further segmented into China, India, Japan, South Korea, Australia, and the Rest of APAC. The adoption of fiber optics is high in this region owing to development in the communications applications; thus, the fiber connectivity in this region is likely to surge. In March 2018, the consortium of APAC network operators signed a contract with NEC Corporation, a Japan-based company to design a submarine cable (SJC2), which connects Japan, Thailand, Singapore, Hong Kong, Cambodia, Vietnam, Taiwan, China, and Korea. Several companies contributed to the SJC2 cable, such as Chuan Wei, China Mobile International, Chunghwa Telecom, Singtel, KDDI, SK Broadband, VNPT, and Facebook. In this region, 5G technology is likely to have a positive impact on the fiber optic industry for 5G network infrastructure. The upcoming 5G network installations would offer new market opportunities for fiber optic cables and other high-speed connectivity products. The fiber optic cables connect micro base stations and edge nodes in the 5G network infrastructure; this would be an important factor driving the growth of fiber optic demand. The 5G high reliability and low latency application need edge computing solutions, which are anticipated to surge the demand for fiber optic cables. APAC has arisen as the largest consumer market of the fiber optic cable industry owing to major investments by the government to deploy fiber optic cable.
In 2019, North America stood second in the Fiber Optic Components market with a decent market share, and it is anticipated to witness a steady CAGR from 2020 to 2027. North American region comprises significant countries, such as the US, Canada, and Mexico. Technological advancements have led to highly competitive markets across North America, with the US being a developed country in terms of acceptance of modern technology electronic components. The region hosts several technological giants that invest significant amounts in the development of robust technologies. With the growing demand for better quality and efficiency of electronic devices among North Americans, the OEMs focus on the development of advanced technological components. The fiber optic components market is anticipated to grow further in the region owing to growing industrialization and infrastructural development. The government focuses on investing in telecommunication infrastructure since it spurs economic growth and creates employment.
Companies adopt inorganic market strategies to expand their footprints across the world and meet the growing demand. The fiber optic components market players mainly focus on the acquisition strategy to expand their business and maintain their brand name globally. For instance, in 2020, Fujitsu Optical Components Limited (FOC) introduced compact and low power consumption 400Gbps ZR transceivers. These transceivers are compliant to the Optical Internetworking Forum (OIF) Implementation Agreement 400ZR for cloud data center interconnects (DCI) of up to 120km transmission.
Impact of COVID-19 on Fiber Optic Components market
According to the latest situation report from World Health Organization (WHO), the US, Spain, Italy, France, Germany, the UK, Russia, Turkey, Brazil, Iran, and China are among the worst affected countries due to COVID-19 outbreak. The outbreak first began in Wuhan (China) during December 2019, and since then, it has spread at a fast pace across the world. The COVID-19 crisis is affecting the industries worldwide, and the global economy is anticipated to take the worst hit in 2020 and 2021. The outbreak has created significant disruptions in the construction sector. The sharp decline in the international trade is negatively impacting the growth of the global economy. The production shutdowns, restrictions on supply chain, procurement management, labor scarcity, and border lockdowns to combat and contain the outbreak have adversely affected the construction sector. The production slowdown in the construction industry is directly affecting the adoption of various ad-hoc technologies and solutions such as fiber optic components, as the telecommunication companies have reduced their spending on adopting several technology solutions to deal with the current scenario.
The report segments the global Fiber Optic Components market as follows:
By Data Rate