[Research Report] The fiber optic components market was valued US$ 16,546.7 million in 2019 and is expected to reach US$ 39,150.3 million by 2027; it is estimated to grow at a CAGR of 11.3% during 2020–2027.
The fiber optic components market is analyzed based on historical, current, and future trends across the region. The fiber optic components 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.
NEC Corporation is an optical fiber provider, which was chosen by the SJC2 Consortium as the provider for the advanced optical fiber submarine cable system. The cable can carry ~18Tbps of capacity per fiber pair. Hence, such major agreements in the region drive the demand for fiber optic components in APAC.
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 demand for fiber optics. 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 the Association of Southeast Asian Nations (ASEAN) region, Singapore launched a 5G trial service. Vietnam, the Philippines, Malaysia, and Thailand are also likely to launch 5G in the coming years. The mobile operators in the region have invested US$ 370 billion to build 5G networks as per Global System for Mobile Communications (GSMA). World’s first nationwide 5G networks went live in South Korea in 2019. It is projected that 5G would contribute ~US$ 900 billion to the region’s economy during the next 15 years. Thus, high emphasis on 5G networks demands fiber optic components.
In the SAM region, Brazil holds a significant market share. The increased investment in fiber optic components by the masses across the region has driven the market growth. However, the ongoing COVID-19 outbreak is anticipated to affect economic growth, and thus the number of business and financial transactions in this region. Hence, the y-o-y growth of the market will get affected in 2020 and 2021, owing to business shutdowns and trade disruptions.
Impact of COVID-19 Pandemic on Fiber Optic Components Market
According to the latest situation report from the 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 likely in 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.
Lucrative Regional Fiber Optic Components Market
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Market Insights–Fiber Optic Components Market
Rising Data Centers
The deployment of data center has witnessed a significant rise owing to the increasing adoption of digital technologies by organizations for various business operations across the world in recent years. The data centers act as a digital infrastructure to streamline and manage various digital operations, and act as a centralized platform to store and backup data. The data center requires various optical fibre components such as cables, amplifiers, splitters, connectors, circulators, and transceivers, which requires periodic retrofitting. Further, with the incremental improvements in edge computing and IoT backed by increasing investment for data centers and advanced technologies, and the proliferation of data by large organizations is projected to pave way for optic fiber component market. Meanwhile, the outbreak of COVID-19 has changed the operational way of organizations. Factor such as improved productivity of employees by working remotely and cost saving are expected to fuel the optic fiber component market.
Type-Based Insights
Based on type, the fiber optic components market is segmented into cables, active optical cables (AOC), amplifiers, splitters, connectors, circulators, transceivers, and others. The cables segment held the highest market share in 2019 owing to its growing demand in various applications. Optical fiber cables used for communication are mostly made from silica, which, in pure form, has a low loss in the infrared region of the optical spectrum.
Fiber Optic Components Market, by Type – 2019 and 2027
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Mode of Data Rate -Based Insights
Based on mode of data rate, the fiber optic components market is segmented into 10G, 40G, 100G, and above 100G. The 100G segment held the largest market share in 2019 since it improves optical channel capacity and support higher-rate client interfaces.
Application-Based Insights
Based on application, the fiber optic components market is segmented into communications, distributed sensing, analytical and medical equipment, and lighting. The communications segment held the largest market share in 2019. The principal driving force behind the extensive use of fiber optics communication is the increasing consumer and commercial market for internet services and telecommunication capacity.
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Fiber Optic Components Market: Strategic Insights
Market Size Value in US$ 16,546.7 Million in 2019 Market Size Value by US$ 39,150.3 Million by 2027 Growth rate CAGR of 11.3% from 2020-2027 Forecast Period 2020-2027 Base Year 2020
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Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Fiber Optic Components Market: Strategic Insights
| Market Size Value in | US$ 16,546.7 Million in 2019 |
| Market Size Value by | US$ 39,150.3 Million by 2027 |
| Growth rate | CAGR of 11.3% from 2020-2027 |
| Forecast Period | 2020-2027 |
| Base Year | 2020 |
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The market players focus on new product innovations and developments by integrating advanced technologies and features in their products to compete with the competitors.
- 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.
- In 2019, Lucent Technologies announced that it has completed the sale of its Atlanta-based Optical Fiber Solutions (OFS) business to Tokyo's Furukawa Electric Co. Ltd. Lucent will receive US$2.3 billion from Furukawa for the major portion of the business, US$225 million less than originally agreed.
Fiber Optic Components Market – By Type
- Cables
- Active Optical Cables
- Amplifiers
- Splitters
- Connectors
- Circulators
- Transceivers
- Others
Fiber Optic Components Market – By Data Rate
- 10G
- 40G
- 100G
- Above 100G
Fiber Optic Components Market – By Application
- Communications
- Distributed Sensing
- Analytical and Medical Equipment
- Lighting
Fiber Optic Components Market – Companies Profiles
- Accelink Technology Co. Ltd.
- Broadcom, Inc.
- EMCORE Corporation
- Fujitsu Limited
- Furukawa Electric Co. Ltd.
- II-VI Incorporated
- Lumentum Operations LLC
- O-Net Technologies (Group) Limited
- Reflex Photonics Inc.
- Sumitomo Electric Industries, Ltd.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type ; Data Rate ; Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
Optical fiber cables used for communication are mostly made from silica, which, in pure form, has a very low loss in the infrared region of the optical spectrum. An optical fiber is constructed with a higher index of refraction with a cylindrical core than the cladding material. This difference in the refraction index gives the fiber its light guiding properties. The index of refraction of either the core or the cladding is changed from pure silica values by incorporating small amounts of doping materials, such as phosphorus and germanium. In fiber-optic communications, single-mode and multimode fiber constructions are used depending on the application. In multimode fiber, light travels through the fiber following different light paths called modes. In a single-mode fiber, only one mode is propagated straight through the fiber.
The deployment of data center has witnessed a significant rise owing to the increasing adoption of digital technologies by organizations for various business operations across the globe in recent years. The data centers act as a digital infrastructure to streamlined, manage various the digital operations, and act as centralized platform to store and backup data. The data center requires various optical fibre components such as cables, amplifiers, splitters, connectors, circulators, transceivers etc., and which requires periodic retrofitting. Furthermore, with the incremental improvements in edge computing and IoT backed by increasing in investment for data centers and advanced technologies, and the proliferation of data by large organizations is projected to pave way for optic fiber component market. Meanwhile, the outbreak of COVID-19 has changed the way organizations are operating, factor such as improved productivity of employees by working remotely and cost saving are among other attributes which is expected to fuel the optic fiber component market.
The North America region led the cold chain market in 2019. . 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. The telecom infrastructure investment levels in the US are significantly higher than in other countries such as Japan and South Korea. Besides, investment per capita in the US has been growing at an impressive rate each year.
The List of Companies - Fiber Optic Components Market
- Accelink Technology Co. Ltd.
- Broadcom, Inc.
- EMCORE Corporation
- Fujitsu Limited
- Furukawa Electric Co. Ltd.
- II-VI Incorporated
- Lumentum Operations LLC
- O-Net Technologies (Group) Limited
- Reflex Photonics Inc.
- Sumitomo Electric Industries, Ltd.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
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Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
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We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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