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The fiber optics market size is projected to reach $5.00 billion by 2021 at a CAGR of 9.8%. Telecom segment will have been the largest application in the fiber optics market. Middle East & Africa Will exhibit the fastest growth rate in the fiber optics market from 2016 to 2021.
The fiber optics market size is projected to reach USD 5.00 billion by 2021 at a CAGR of 9.8%. The fiber optics market is driven by the increasing demand for the Internet and growing FTTx networks. The Internet has gained importance with the rising demand for cloud computing, data transfer & storage, and the Internet of Things (IoT). Advances in technology to meet the growing demands from the Internet are expected to provide high growth opportunities to the fiber optics market. However, growth in the wireless communication systems market is expected to be a restraint, which could hinder the growth of the fiber optics market as these are considered alternatives to the use of fiber optics.
The fiber optics market is segmented by cable type, optical fiber type, application, and region. Cable type is further sub segmented into two types, namely, single mode and multi-mode. Optical fiber type is further sub segmented into two types, namely, glass optical fiber and plastic optics fiber.
The market for the single cable type is expected to grow at a high rate from 2016 to 2021. The next generation of high bandwidth applications, along with the proliferation of connected devices, is expected to require faster and higher bandwidth networks which will require the use of multi-mode cable for data transfer. This growth in the FTTx networks in turn is expected to drive the fiber optics market.
The market for glass optical fiber is expected to grow at a high rate from 2016 to 2021. Advantages such as greater bandwidth; immunity to interference from vibrations & electricity; and the light weight are expected to drive its market in applications such as telecom and CATV which require mechanical protection against stress.
The fiber optics market can be classified into application segments, such as telecom, premises, utility, cable antenna television (CATV), military, industrial, sensors, and fiber optic lighting, among others. The telecom segment is estimated to have been the largest application in the fiber optics market, in 2016. The mass utilization of digital technologies and applications by consumers, enterprises, and governments continues to drive the global telecom market. Positive trends in broadband and big data management are driving the growth of the telecom market. Factors such as increasing Internet user base, low-cost services offered by service providers, inexpensive communication devices; growing numbers of subscribers for various wireless as well as fixed-point communications are responsible for the growth of the fiber optics market.
Middle East & Africa are projected to exhibit the fastest growth rate in the fiber optics market from 2016 to 2021.The growth of the fiber optics market in this region is mainly attributed to its increasing applications such as telecom, industrial, CATV, and sensors. The UAE, Saudi Arabia, and Iran are the most preferred destinations for major infrastructure projects in the region. All these activities are expected to create opportunities in fiber optics-based communication networks. The large-scale investments in the region, the high standards of living, and increasing residential, healthcare hospitals, commercial, manufacturing, and transport infrastructure are expected to lead to an increase in the demand for fiber optics.
The major restraint in the fiber optics market is the growing use of wireless communications systems in remote areas. Mergers & acquisitions and new product launches are the most preferred strategies adopted by the key players to sustain in this highly competitive market. Major opportunities in the market are the advances in technologies leading to an increase in the data transmission rate and factors & trends defining the telecommunications industry in the Middle East & Africa. The fiber optics market is projected to growth at a high rate from 2016 to 2021. The companies profiled in this report include Corning Inc. (U.S.), Prysmian Group (Italy), AFL Global (U.S.), Finisar Corporation (U.S.), Leoni AG (Germany), Furukawa Electric Co., Ltd (Japan), LS Cable & System (South Korea), General Cable Corporation (U.S.), and Finolex Group (India), among others.