The fiber optic connectivity market is capturing a valuation of USD 3.1 billion in 2023 and is predicted to reach USD 7.7 billion by 2033. The market is registering a CAGR of 9.5% during the forecast period.
The low cost associated with data transfer is a key factor that is anticipated to flourish the growth of the global market during the forecast period. Demand for fiber optic technology in various industrial, submarine, and aircraft sectors influences the market's growth.
| Attribute | Details |
|---|---|
| Market CAGR (2023 to 2033) | 9.5% |
| Market Valuation (2023) | USD 3.1 billion |
| Market Valuation (2033) | USD 7.7 billion |
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A few factors act as obstacles and hinder the market growth during the forecast period such as:
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Some of the key trends of the fiber optics connectivity market include the growing adoption of electronic gadgets and the formation of a high volume of data traffic by many customers. The increasing demand for the Internet and initiatives to improve connectivity in emerging countries are creating opportunities, fueling the demand for the fiber optics connectivity market during the forecast period.
The global demand for the Internet, coupled with the rising need for FTTx, is a significant factor driving the fiber optics industry growth. IoT is an online integration of daily use devices (mostly machine-to-machine).
The increasing number of connected devices is estimated to result in great demand for high bandwidth, which is estimated to result in the growth of IoT.
Data center colocation services that use fiber optics to transfer information are estimated to also help to boost the growth of IoT. Several other factors, such as an increase in the number of connected devices in homes, growth in demand for OTT video content, and an increase in internet access, drive the demand for the Internet.
All these factors have increased the number of Internet users, which, in turn, has led to the increased use of optical fiber cables to transfer information over the Internet, driving the fiber optics market.
The market was valued at USD 2.1 billion in 2018 and secured USD 2.8 billion in 2022. The market is anticipated to secure a CAGR of 7.4% between 2018 and 2022.
The market grew steadily by increasing demand for reliable, high-speed internet connections, cloud computing services, and Internet of Things devices. The growing investments in regions such as Asia Pacific, North America, and Europe fueled the global market between 2018 and 2022.
The demand for fiber optic connectivity is rising in developing industries such as telecommunication, enterprises, and data centers. The government also played an essential role in expanding the broadband infrastructure, with several implemented programs surging the demand for fiber optic connectivity.
The market has been highly competitive in the recent period by present players and new market entrants to offer a wide range of fiber optic connectivity solutions. The increasing adoption of 5G networks and high capability expands the global market.
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The global market can be segmented based on Component, Industry, and Region. Based on the Component, the market can be segmented into Hardware, Software, and Services.
According to the FMI, the market by Component for Hardware is projected to expand at a share of 61.3% in the global market during the forecast period.
Based on Industry, the market can be segmented into Mining, Oil & Gas, Wind Power, Electric Substation, and Smart Cities. Throughout the research, the Smart Cities segment is predicted to expand at a CAGR of 10.5% during the forecast period. The smart cities sector is anticipated to secure a share of 39.4% in the global market by 2033.s
| Countries | CAGR % 2033 to End of Forecast (2033) |
|---|---|
| The United States | 20.1% |
| Germany | 8.7% |
| Japan | 6.2% |
| Australia | 2.9% |
| China | 11.6% |
| India | 10.3% |
| The United Kingdom | 9.2% |
The global market is divided into North America, South America, Europe, Asia Pacific, the Middle East, and Africa based on geography. In 2022, the sales of fiber optic connectivity solutions in the United States were worth USD 414.2 million. The market in the United States is likely to reach a valuation of USD 1 billion by 2033 with a CAGR of 20.1%.
China is expected to reach a market size of USD 0.4 billion by 2033, representing a CAGR of 11.6% over the forecast period. Japan and the United Kingdom are expected to reach the same market size of USD 0.3 billion each by 2033, representing growth forecasts of 6.2% and 9.2%, respectively, throughout the forecast period.
North America region is expected to dominate the fiber optic connectivity market during the forecast period, attributed to the increase in web usage, online music, downloading files, watching videos on demand, etc., in the United States. Further, Europe and Asia Pacific are expected to generate maximum demand for fiber optic connectivity.
India is expected to reach a market size of USD 0.2 billion in 2033, representing a CAGR of 10.3% during the forecast period. India is the second leading telecom market in the world over a billion mobile subscribers. In India, high demand for next-gen services such as 5G, Internet of Things, and Artificial Intelligence is coming from both industry and government.
Adtell Integration, Adtran Inc., Broadcom, Cisco Systems Inc., Corning Incorporated, Fiber Optic Services (FOS), Finisar Corporation, Fujitsu Optical Components Ltd., Hamamatsu Photonics K.K., Huawei Technologies Co., HUBER+SUHNER AG, Infinera Corporation are the top companies in the global market.
With a sizable global market share, these main firms are concentrating on growing their consumer base in new countries. These businesses use strategic collaboration initiatives to grow their market share and profits.
Mid-size and small businesses, on the other hand, are expanding their market presence by gaining new contracts and entering new markets, thanks to technical developments and product innovations. The key companies that are adopting various marketing strategies to upsurge the global market include mergers, acquisitions, partnerships, agreements, and collaborations.
Recent Developments in the Global Market:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD billion for Value |
| Key Countries Covered | The United States, The United Kingdom, Japan, India, China, Australia, Germany |
| Key Segments Covered |
Component, Industry, Region |
| Key Companies Profiled |
Adtell Integration; Adtran Inc.; Broadcom; Cisco Systems Inc.; Corning Incorporated; Fiber Optic Services (FOS); Finisar Corporation; Fujitsu Optical Components Ltd.; Hamamatsu Photonics K.K.; Huawei Technologies Co.; HUBER+SUHNER AG; Infinera Corporation; OptiLayer GmbH; Optiwave Systems, Inc.; ZTE Corporation |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
Hardware segment holds high revenue potential.
The United States, China and India are estimated to dominate the global market.
The market is forecast to register a CAGR of 9.5% through 2033.
During 2018 to 2022, the market registered a CAGR of 7.4%.
The growing adoption of electronic gadgets are the current market trends.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component 5.1. Hardware 5.2. Software 5.3. Services 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Industry 6.1. Mining 6.2. Oil & Gas 6.3. Wind Power 6.4. Electric Substations 6.5. Smart Cities 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. South Asia 7.5. East Asia 7.6. Oceania 7.7. MEA 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Adtell Integration 17.2. Adtran Inc. 17.3. Broadcom 17.4. Cisco Systems Inc. 17.5. Corning Incorporated 17.6. Fiber Optic Services (FOS) 17.7. Finisar Corporation 17.8. Fujitsu Optical Components Ltd. 17.9. Hamamatsu Photonics K.K. 17.10. Huawei Technologies Co. 17.11. HUBER+SUHNER AG 17.12. Infinera Corporation 17.13. OptiLayer GmbH 17.14. Optiwave Systems, Inc. 17.15. ZTE Corporation 18. Assumptions & Acronyms Used 19. Research Methodology
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Fiber Optic Connectivity Market
