The global Fiber To The x (FTTx) Market size is likely to be valued at USD 10.2 billion in 2023. The deployment of fiber to the x is accelerating given the rising demand for high-speed internet and soaring broadband subscriptions. As a result, the market revenue is anticipated to cross USD 17.3 billion by 2033, reflecting a CAGR of 5.4%.
FTTx is a topology that is used in numerous optical fiber communications and has become one of the essential technologies in the next-generation network. FTTx is deployed in the digital transformation of data and has better access to layer bandwidths.
Key Factors Shaping the Demand Outlook of the FTTx Industry
Key Dynamics Hindering the Growth of the Fiber to the X Industry
| Attributes | Details |
|---|---|
| Base Year Value (2022) | USD 9.7 billion |
| Current Year Value (2023) | USD 10.2 billion |
| Expected Forecast Value (2033) | USD 17.3 billion |
| Historical CAGR (2018 to 2022) | 6.2% |
| Projected CAGR (2023 to 2033) | 5.4% |
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The market revenue is projected to grow by USD 7.1 billion between 2023 and 2033, surpassing the growth of USD 2.1 billion observed between 2018 and 2022.
Between 2018 and 2022, the market grew significantly. The necessity to replace outdated copper-based infrastructure and the rising demand for high-speed internet services were the main factors driving the increase in this period.
Rising demand for fast application performance and increased data transfer capability are certain other key growth drivers. The expansion of the FTTx industry has also been spurred by the emergence of cloud computing and the expanding use of Internet of Things (IoT) devices.
The market is anticipated to experience strong growth opportunities between 2023 and 2033, where it is estimated to expand about 1.7X.
Short-term (2023 to 2026): Increased demand for high-speed broadband connectivity since the prevalence of remote work and online learning is rising. FTTx providers are well-positioned to meet this demand by providing fast and reliable internet connectivity.
Medium-term (2026 to 2029): The market is likely to be driven by the increasing adoption of smart homes and the Internet of Things (IoT) devices. These technologies require high-speed connectivity. FTTx providers are expected to play a critical role in meeting the growing demand for reliable and secure internet connectivity. This is essential for the successful deployment of IoT devices.
Long-term (2029 to 2033): Deployment of 5G networks is projected to drive demand for high-speed mobile connectivity. FTTx providers are likely to play a key role in enabling the deployment of 5G networks by providing the necessary fiber infrastructure. They are well-positioned to offer high-speed mobile connectivity services through their fiber networks, further driving growth in the long run.
The increasing prevalence of advanced multimedia services such as internet protocol television and video on demand is expected to positively impact the market. The rise of social media, streaming services, and other online platforms have contributed significantly to the popularity of advanced multimedia services.
The demand for FTTX is expected to rise as FTTH internet connections become widely used. People are relying on internet-enabled devices to perform several tasks, from communication to entertainment, education, and work.
The rollout of 5G technology is expected to open up new opportunities for FTTx providers. 5G technology requires high-speed fiber connections to support the increased data traffic. This trend is likely to drive demand for FTTX infrastructure in urban areas.
The growing trend toward smart city solutions is expected to drive demand for FTTX infrastructure in both urban and rural areas. These solutions use connected devices and sensors to improve city infrastructure and services. FTTx provides the high-speed and reliable connections needed to support these solutions and enable data collection and analysis.
The shift toward cloud computing is expected to drive demand for FTTX connections. The increasing deployment of Software as a Service (SaaS) and Platform as a Service (PaaS) is also surging the adoption of FTTx.
Leading economies are globally adopting advanced network technology. Governments and telecommunication companies are enormously investing in rural broadband to close the digital gap and expand internet connectivity in remote areas. Since FTTX can deliver high-speed connections over long distances, it is the perfect solution for rural locations.
Principal Consultant
| Country | The United States |
|---|---|
| Historical CAGR (2018 to 2022) | 4.7% |
| Forecasted CAGR (2023 to 2033) | 4.3% |
| Projected Market Value (2033) | 5.4 billion |
| Country | The United Kingdom |
|---|---|
| Historical CAGR (2018 to 2022) | 5% |
| Forecasted CAGR (2023 to 2033) | 4.6% |
| Projected Market Value (2033) | 803.3 million |
| Country | China |
|---|---|
| Historical CAGR (2018 to 2022) | 7.6% |
| Forecasted CAGR (2023 to 2033) | 6.3% |
| Projected Market Value (2033) | 1.5 billion |
| Country | Japan |
|---|---|
| Historical CAGR (2018 to 2022) | 5.4% |
| Forecasted CAGR (2023 to 2033) | 4.8% |
| Projected Market Value (2033) | 1.3 billion |
| Country | South Korea |
|---|---|
| Historical CAGR (2018 to 2022) | 6.9% |
| Forecasted CAGR (2023 to 2033) | 5.8% |
| Projected Market Value (2033) | 698 million |
A large portion of the global market is anticipated to be led by the North America FTTx market. Prominent technological development and widespread FTTx deployment are the reasons behind this dominance. During the forecast period, the increasing demand for significant bandwidth and increasing use of optical fiber in mobile backhaul are likely to spur market expansion.
The United States fiber to the x market is the key market in North America since it has an increase in demand for passive optical networks. The first fiber network in Arizona is scheduled to be built in 2023, according to blueprints made official by the telecom company Corning. This network is expected to reach more than 100,000 homes. To develop its intercity infrastructure,
There were almost 311.3 million people in the United States who accessed the internet in January 2023, with an average penetration rate of 91.8% of the population as a whole. The nation is also expanding investments in the telecom industry to build out its internet infrastructure. For instance,
Numerous research and development facilities are present in nations like the United Kingdom. This is predicted to drive the Europe FTTx market during the forecast period. The United Kingdom fiber to the x market has seen significant growth in recent years. The market growth is primarily driven by increased demand for high-speed internet services, precisely in urban areas.
According to a report by the Office of Communications (Ofcom), at the end of Q3 2022, 19.4 million FTTx broadband connections (largely full fiber and fiber-to-the-cabinet connections) made up 69.9% of all lines.
A key trend driving the market growth is the government’s commitment to increasing full-fiber coverage across the country. By 2025, the government promised to roll out gigabit internet across the country. This investment is expected to boost FTTX deployment and drive further growth in the market.
A significant development in the improvement of the complete fiber broadband infrastructure in the United Kingdom was announced by Openreach in March 2023. Therefore, 10 million households, companies, and public agencies can use Openreach's leading full-fiber broadband network.
Asia Pacific FTTx market is likely to surpass North America during the forecast period since several developing countries are making huge investments in fiber broadband. The region is witnessing continuous infrastructural developments and technological advancements.
China built the leading mobile broadband and fiber optic network in 2018 with the unparalleled network quality. China fiber to the x market has been growing at a fast pace. The government's efforts to promote broadband internet services in the country are the key factors contributing to this enormous growth.
The establishment of FTTx networks is part of the government's "New Infrastructure" strategy, which was recently unveiled. By 2025, the goal is to have all domestic units connected to high-speed internet. The government has also allotted a sizeable sum of money to help remote areas develop FTTx infrastructure. China Telecom has also made significant investments in the growth of the FTTx infrastructure within the country.
Japan’s fiber to the x market held notable growth over the past few years. As of 2022, Japan had around 36.7 million fiber-to-the-home (FTTH) subscribers. To improve the digital infrastructure across Japan, the government has been strongly encouraging the deployment of FTTX technology.
The government aims to achieve 90% fiber-to-the-home coverage by 2025. Moreover, a prototype chip to speed up communication in data centers and through underwater fiber optic cables was announced in February 2023 by Japan telecom company NTT.
When it comes to the adoption of fiber connectivity, South Korea leads the world. KT Corporation revealed plans of investing USD 21.5 billion in 5G and fiber-optic infrastructure in June 2022. The government has been actively endorsing the development of FTTx infrastructure to uphold its competitive edge.
Initiatives like the "Broadband Korea" plan and the "Smart City" project aim to provide high-speed internet access to all households in the country. The government already announced its strategy to gain control of the 6G industry in February 2023. Thus, South Korea’s fiber to the x market is projected to experience exponential growth by 2033.
| Segment | Application |
|---|---|
| Top Sub-segment | Residential |
| Historical CAGR (2018 to 2022) | 6.1% |
| Forecasted CAGR (2023 to 2033) | 5.3% |
| Segment | Type |
|---|---|
| Top Sub-segment | Fiber to the Home/Premises/Building (FTTH/P/B) |
| Historical CAGR (2018 to 2022) | 6.0% |
| Forecasted CAGR (2023 to 2033) | 5.2% |
The market is dominated by the residential segment because they represent the main consumer base with a high demand for fast internet speeds. Residential users of high-speed internet connections strongly esteem them for data-intensive activities like streaming video and online gaming. Service providers have to utilize fiber-optic technology to deliver extremely fast internet speeds to meet the demand.
Residential customers typically require an easy-to-use interface. FTTx service providers can easily provide it through wireless and fiber-optic connections. Moreover, residents of developing countries are demanding high-speed internet services.
The FTTH/P/B segment is dominant in the market given its ability to provide end users with high speeds, bandwidth, and a reliable internet connection. FTTH/P/B technology directly connects a fiber optic cable from the service provider to the user's premises. This eliminates signal interference and degradation that can occur with other fiber technologies like FTTN/C or FTTA.
FTTH/P/B offers symmetric speed which is crucial for applications that require uploading data. FTTH/P/B is also able to future-proof the network since it has the potential to support even high speeds and emerging technologies like 5G. This can save service providers the cost of upgrading their infrastructure in the future.
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Key market players are investing significantly in research and development to enhance the speed, quality, and reliability of fiber optic technology. They are expanding their fiber networks by deploying many cables and building new infrastructure to reach more customers.
To reduce costs and increase efficiency, companies are collaborating with other players to share resources and expertise. Additionally, certain companies are acquiring other companies to gain access to new technologies and markets. These activities are aimed at strengthening the position of key market players and improving their competitiveness.
Recent Developments
The market is expected to reach USD 10.2 billion in 2023.
The market is anticipated to expand at a CAGR of 5.4%.
Demand for high-speed internet and favorable government initiatives are yielding market growth.
High installation costs and limited presence of skilled workforce pull back the market expansion.
Emerging trend of smart city solutions and rollout of 5G technology are influencing the market growth.
1. Executive Summary | Fiber to the X Market 2. Market Overview 3. Market Background 4. Global Fiber To The X Analysis 2018 to 2023 and Forecast 2023 to 2033 5. Global Fiber To The X Analysis 2018 to 2023 and Forecast 2023 to 2033, By Types 5.1. Fiber To The Home/Premises/Building (FTTH/P/B) 5.2. Fiber To The Node/Curb (FTTN/C) 5.3. Fiber To The Antenna (FTTA) 6. Global Fiber To The X Analysis 2018 to 2023 and Forecast 2023 to 2033, By Applications 6.1. Industrial 6.2. Commercial 6.3. Residential 7. Global Fiber To The X Analysis 2018 to 2023 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. Asia Pacific 7.5. Middle East & Africa 8. North America Fiber To The X Analysis 2018 to 2023 and Forecast 2023 to 2033, By Country 9. Latin America Fiber To The X Analysis 2018 to 2023 and Forecast 2023 to 2033, By Country 10. Europe Fiber To The X Analysis 2018 to 2023 and Forecast 2023 to 2033, By Country 11. Asia Pacific Fiber To The X Analysis 2018 to 2023 and Forecast 2023 to 2033, By Country 12. Middle East & Africa Fiber To The X Analysis 2018 to 2023 and Forecast 2023 to 2033, By Country 13. Key Countries Fiber To The X Analysis 14. Market Structure Analysis 15. Competition Analysis 15.1. Allied Telesis 15.2. Commscope 15.3. AFL (Fujikura Company) 15.4. OFS (Furukawa Company) 15.5. Huawei 15.6. Shanghai Sun Telecommunication 15.7. ZTT 15.8. Fiber Optic Telecom 15.9. ZTE 15.10. Alfocom Technology 15.11. Verizon 15.12. Bharat Sanchar Nigam Limited (BSNL) 15.13. AT&T 16. Assumptions & Acronyms Used 17. Research Methodology
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