Global Fiber Optic Components Market Size, Share & Industry Trends Analysis Report By Component, By Application, By Communications Type, By Regional Outlook and Forecast, 2021 - 2027

Global Fiber Optic Components Market Size, Share & Industry Trends Analysis Report By Component, By Application, By Communications Type, By Regional Outlook and Forecast, 2021 - 2027

The Global Fiber Optic Components Market size is expected to reach $36.3 billion by 2027, rising at a market growth of 8.1% CAGR during the forecast period.

Fiber optic components are an integral part of fiber optic infrastructure used to meet the rising demand for fiber optic communication across various countries and continents. The fiber optic communication market is majorly divided into fiber optic components & fiber optic cables. The fiber optic cables use light as a medium of transferring information from one place to another. These are used in fiber optic communication to transmit these signals to long distances. These support higher bandwidth in comparison to copper cables. Due to this, they are the perfect choice for the new generation technologies like 4G & 5G.

According to the various studies conducted by scientists and researchers across the world, continuously developing technology is one of the innovations of the present day. Technology has been helpful for a large number of applications & advancements in technology are taking place continuously. Rising demand for high bandwidth communication is the main factor accelerating the market growth. IT and Telecommunication are the main sectors for a broad variety of applications. The advancements of fiber-rich infrastructure have appreciably increased the demand for these cables.

Fiber optic technology is being adopted by the whole world because of the inbuilt advantages of conventionally used copper. Glass optical fiber includes high flexible strength in comparison to other mediums. Also, the fiber is lighter & smaller as compared to the copper which makes it easier to handle along with less space requirements. Field termination, testing, and splicing of fiber optic cables & connectors is comparatively easier. Fiber optic technology is used in various applications including computer links, video transmissions, telecommunications, medical, scientific areas, select industrial and defense.

Impact of COVID 19

The widespread COVID-19 pandemic has affected the world’s economy brutally. Various restrictions were imposed by the governments of different countries such as restriction over the movement of goods & people, and complete lockdown implemented in order to curb the spread of disease. All these restrictions have led to a shortage of raw materials for many industries. Further, it also resulted in disruptions in supply chains.

The fiber optic components market has witnessed significant growth in the recent past. This is because of the increasing internet penetration & data traffic, rising installation of data centers along with the growing demand for reliability and bandwidth. The pandemic has negatively affected the fiber optic components market.

Market Growth Factors

Rising demand for internet

The internet plays a crucial role for connected devices. Fiber optic is considered as the backbone of the internet as the optical fiber cables are utilized as a medium to transmit the information from one point to another. As per the record of the International Telecommunication Union (ITU), in 2018, 51.2% of the total population in the world was using the internet and the growth rate in the same year was 45%. The increasing importance of cloud computing, data storage & transfer and the Internet of Things are surging the use of the internet.

The International Energy Agency (IEA) estimates that the number of people using the internet will reach up to 5.0 billion by 2025 from 3.6 billion in 2018. In addition, the number of IoT connections is likely to increase to 25.0 billion by 2025 from 7.5 billion in 2018. The rise in the number of connected devices would result in higher demand for higher bandwidth which further will result in the growth of IoT.

Developing telecom infrastructure

The development of telecommunication infrastructure in the emerging economies would have a positive impact on market growth. The demand for smart devices & other related applications has been increased due to the arrival of artificial intelligence, big data and the internet of things. The interconnected technologies play a crucial role in transferring, capturing, & translating data into meaningful information across the telecommunication sector that is important for reinforcing urban infrastructure. The high-speed fiber optic network is the backbone for such kind of infrastructural development that can transfer a large amount of data with a high speed from one point to another.

Wireless communication systems use microwave radio spectrum to transmit information from one end to another. Radio frequency & fiber space optics (FSO) are among the most commonly used techniques for wireless communication.

Market Restraining Factors

Threat to optical network security

ptical networks are at a high risk to various types of security attacks or breaches that are aimed to create disruptions in services and get unauthorized access to carried data that is also called eavesdropping. Fiber optic communication and storage systems are considered safer than conventional copper cable-based systems because hacking into data stored at a fiber optic based system needs highly advanced technology that is available only at the government agencies. But from the past few years inexpensive hardware & software are available in the market.

Hardware devices like electrical/ optical converters transfer the converted through an Ethernet connection. Furthermore, hacking is also possible by the use of sniffer software. The security attacks may lead to the financial losses of the clients and can also cause network-wide disruption to services, which may result in the loss of a large amount of essential data.

Component Outlook

Based on Component, the market is segmented into Transceivers, Cables, Active Optical Cables, Connectors, Amplifiers, Splitters & Circulators and Others. In 2020, the transceivers segment dominated the fiber optic component market by generating the highest revenue share. Rising adoption of smart devices like laptops, smartphones, IoT-based home security systems, gaming sensors, and home assistants along with the increasing data traffic are the major factors responsible for the growth of high speed, coherent optical transceiver modules. Also, the introduction of the 5G network & integration of IoT (Internet of Things), AI (artificial intelligence) has positively affected the market.

Application Outlook

Based on Application, the market is segmented into Communications (Telecommunications, Data Centers and Enterprises), Distributed Sensing, Lighting and Analytical & Medical Equipment. The distributed sensing segment acquired a substantial revenue share in the fibre optic component market in 2020. Distributed sensing for temperature sensors is used in power cable & transmission line monitoring in plant & process engineering. The cost-effectiveness of cost distributed fibre optic sensors is driving the growth of this segment.

Regional Outlook

Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2020, the Asia Pacific region garnered a promising revenue share in the fiber optic component market. Rising industrialization & enhancement in infrastructure in the region has increased the demand for the fiber optic components market to be used in a broad variety of applications across the Asia Pacific. Furthermore, the increasing use of fiber optics in the healthcare sector in Asian countries like India, Japan & China would support the market growth.

The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Fujitsu Limited and Broadcom, Inc. are the forerunners in the Fiber Optic Components Market. Companies such as Amphenol Corporation, Lumentum Holdings, Inc., and TE Connectivity Ltd. are some of the key innovators in the Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Sumitomo Electric Industries, Ltd., Furukawa Electric Co., Ltd., II-VI Incorporated, Amphenol Corporation, Fujitsu Limited (Fujitsu Optical Components Limited), Broadcom, Inc., Lumentum Holdings, Inc., TE Connectivity Ltd., EMCORE Corporation, and Accelink Technology Co. Ltd.

Recent Strategies Deployed in Fiber Optic Components Market

Partnerships, Collaborations and Agreements:

Jul-2021: Furukawa Electric teamed up with Fujitsu Optical Components Limited, the leading manufacturer of current-carrying wiring devices. Together, the companies aimed to bring optical device products for digital coherent systems to supply specialized transceiver solutions to customers in the Asia region, where such solutions are witnessing high demand.

Jul-2021: EMCORE Corporation entered into a contract with Raytheon Intelligence & Space, an aerospace and defense company. Under this contract, the companies would dispatch high-performance Fiber Optic Gyroscope for the usage of airborne optical targeting systems.

Jan-2021: Fujitsu Network Communications formed a partnership with HFR Networks. Under this partnership, the companies aimed to launch the industry’s first 25G Smart Tunable Optics as part of the proven flexiHaul portfolio of solutions. It offers flexible and impressive total cost of ownership benefits that operators demand as they continue to move towards open networks while simultaneously increasing network capacity across mixed generations of radio technologies and vendors.

Feb-2020: Lumentum Holdings joined hands with Infinera, a global supplier of innovative networking solutions. Together, the companies aimed to bring high-speed coherent components and pluggable modules to an innovative solution like XR optics to market. The XR optics concept would support the companies' core strategy that supplies scalable and flexible coherent optical network solutions that permit higher speeds for next-generation transport networks.

Product Launches and Product Expansions:

Sep-2021: TE Connectivity launched the NanoRF Edge Launch connector, a solution that integrates RF above an optical interconnect for military and radar RF embedded computing applications. This solution fulfills the need of VITA 67.3 to offer an easy and standardized interface with VPX plug-in computing modules that includes tuners, software-defined radios, RF switches, and other embedded computing systems.

Jun-2021: Sumitomo Electric Industries introduced AirEB, a multi-fiber connector. This connector offers a multi-fiber connector with an expanded beam that has optical performance tolerant to the contamination on the connector mating faces that contributes to a reduction in cost for a huge number of fiber optic network operators. This product features convenience and high frequency of cleaning, ease in material management, and better mass production.

May-2021: Broadcom launched Emulex Gen 7 LPe36000-series Host Bus Adapters. The product is the first in the industry to offer a comprehensive product portfolio that allows an end-to-end 64G data path.

Dec-2020: Broadcom expanded its suite for data centers, Cloud, and AI networks. The suite includes a new family of 800G optical PHY devices, the BCM8780X, optimized for QSFP-DD800 and OSFP transceiver module applications, and an 800G 8:8 retimer PHY device, the BCM87360, developed for line card applications.

ct-2020: Fujitsu Optical Components Limited introduced its 400G ZR+ transceiver. It offers, coherent WDM transmission greater than 120km in the same form factor. It ensures interoperability with other manufacturers transceivers by utilizing the CFEC, which arranges the OIF Implementation Agreement 400ZR. It provides error-free transmission of data traffic demonstrated using FOC’s 400G ZR transceiver

Feb-2020: Fujitsu Optical Components Limited launched its compact and low power consumption 400Gbps ZR transceivers. It offers, the Optical Internetworking Forum Implementation Agreement 400ZR for cloud data centre interconnects of up to 120km transmission. In addition, these products are realized with the solid QSFP-DD and OSFP form factors and could be deployed directly on routers and switches. It enables high capacity 400Gbps coherent DWDM transmission for DCI.

Acquisitions and Mergers:

Dec-2021: Amphenol Corporation took over Halo Technology, the global leader in the fiber optics industry. This technology would support the companies prevailing high-speed and fiber optic interconnect solutions and offer a substantial long-term growth opportunity for Amphenol.

Nov-2021: Lumentum Holdings signed an agreement to acquire NeoPhotonics Corporation, a leading developer and manufacturer of ultra-pure light lasers and optoelectronic products. The company aimed to expand and utilized the opportunities in the fastest growing areas for optical components utilized in cloud and telecom network infrastructure.

Sep-2021: TE Connectivity completed the acquisition of ERNI Group, the world leader in connectivity and sensors. This acquisition aimed to support TE's wide connectivity product offering, especially in high-speed and fine-pitch connectors for factory automation, medical, automotive, and other industrial applications.

Mar-2021: Amphenol Corporation acquired EUROMICRON Werkzeuge, leading developers and manufacturers of high-precision connection technology for fiber-optic applications. The acquisition aimed to increased solution portfolio and an international expansion of business activities is planned.

Scope of the Study

Market Segments covered in the Report:

By Component

• Transceivers
• Cables
• Active Optical Cables
• Connectors
• Amplifiers
• Splitters & Circulators
• Others

By Application

• Communications

Telecommunications

Data Centers and

Enterprises

• Distributed Sensing
• Lighting
• Analytical & Medical Equipment

By Geography

• North America

US

Canada

Mexico

Rest of North America

• Europe

Germany

UK

France

Russia

Spain

Italy

Rest of Europe

• Asia Pacific

China

Japan

India

South Korea

Singapore

Malaysia

Rest of Asia Pacific

• LAMEA

Brazil

Argentina

UAE

Saudi Arabia

South Africa

Nigeria

Rest of LAMEA

Companies Profiled

• Sumitomo Electric Industries, Ltd.
• Furukawa Electric Co., Ltd.
• II-VI Incorporated
• Amphenol Corporation
• Fujitsu Limited (Fujitsu Optical Components Limited)
• Broadcom, Inc.
• Lumentum Holdings, Inc.
• TE Connectivity Ltd.
• EMCORE Corporation
• Accelink Technology Co. Ltd.

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