Fiber to the X Market

Fiber to the X Market Outlook (2023 to 2033)

The global fiber to the x (FTTx) market size is likely to be valued at US$ 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 US$ 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

• The demand for high-speed internet connectivity is increasing significantly given the rise of remote work, e-learning, and online entertainment.
• The growing popularity of advanced technologies such as cloud computing, IoT, and big data analytics.
• As cloud computing continues to grow in popularity, businesses are seeking ways to optimize their data transmission and storage.
• Businesses are increasingly relying on high-speed internet connectivity to transfer large amounts of data quickly and efficiently.
• Many governments are promoting the deployment of fiber-to-the-home (FTTH) and fiber-to-the-x (FTTx) networks to improve internet connectivity and support the digital economy.
• The adoption of smart devices and connected homes is increasing notably.
• The demand for high-quality video streaming and online gaming services is increasing.

Key Dynamics Hindering the Growth of the Fiber to the X Industry

• High deployment and installation costs of FTTH/FTTx networks.
• Limited availability of skilled workforce for fiber to the x installation and maintenance.
• Slow adoption of FTTH/FTTx technology in certain locations given the lack of infrastructure or regulatory barriers.
• Certain areas have minimal demand for high-speed internet since they have low population density or limited internet usage.
• Alternative technologies such as wireless and cable internet can be key competitors to FTTH/FTTx networks.

2023 to 2033 Fiber to the X Market Outlook in Comparison to Sales Registered from 2018 to 2022

The market revenue is projected to grow by US$ 7.1 billion between 2023 and 2033, surpassing the growth of US$ 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 The necessity to replace outdated copper-based infrastructure and the rising demand for high-speed internet services were the main factors driving the increase in this period.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.

Fiber to the X Market Key Trends & Opportunities

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.

Sudip Saha

Principal Consultant

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Exploring the Regional Patterns of the Fiber to the X Market: An In-depth Examination at the Country Level

Digital Infrastructure in North America Gets a Boost from FTTx

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,

• Lumen Technologies installed SMF-28 Ultra fiber and SMF-28 ULL fiber from Corning in December 2022. Adtran introduced the SDX 6330 10 Gbit/s combination passive optical network fiber access product in January 2023. This makes it possible for service providers to efficiently and affordably connect households and businesses to fiber-based internet.

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,

• Verizon Communications introduced its Fios suite of TV and broadband services in Boston. This program was a part of the telco's US$ 300 million commitment to provide a competing broadband source to Comcast, the dominant cable MSO. These elements support the expansion of the domestic market.

Residences in Europe are Increasingly Adopting Fiber Optic Broadband Connections

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 Embraces FTTH Technology for Fast Internet Speeds

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 US$ 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.

Exploring the Fiber to the X Market: An In-depth Segment Analysis

Residential Application Takes over FTTx Industry with Dominating Growth

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.

FTTH/P/B Segment Captures Maximum Market Share in Fiber to the X Industry

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.

Fiber to the X Market: Analyzing Key Players, Strategies, and Market Share in the Global Landscape

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

• For its fiber-to-the-room (FTTR) solution, Huawei received the FTTx Innovation Award in March 2023. It is the first cutting-edge networking product in the market that addresses both residential and SME use cases.
• CommScope® confirmed in March 2023 that it is increasing the manufacture of fiber-optic cables. The aim is to accelerate the deployment of broadband across the United States and connect more towns and underserved areas.
• With Fujikura's new range of specialized fusion splicing accessories, AFL revolutionized fiber preparation and protection for fusion splicing in February 2023. This contains the CT-114, CT-115, and CT-116 Fiber Cleavers as well as the FSR-115, FSR-116, and FSR-117 Optical Fiber Recoaters.
• The AR4050S-5G Mobile Broadband UTM Firewall was introduced by Allied Telesis in August 2022. It is a comprehensive security platform that is perfect for contemporary scattered enterprises.
• In March 2022, OFS announced the showcase of its Ultra-low loss and trench-assisted fiber for high fiber count submarine cable systems at SubOptic 2023.

Key Players

• Allied Telesis
• CommScope®
• AFL (Fujikura Company)
• OFS (Furukawa Company)
• Huawei

How can FTTx Service Providers Grow Their Businesses?

• Increase coverage through infrastructure investment, partnerships, and government initiatives.
• Concentrate on delivering top-notch services and dependable fiber networks.
• Provide affordable price options, such as bundles of services and long-term settlements.
• Adopt innovative business formats, services, and technology to promote innovation.
• Form alliances with other FTTx providers, content suppliers, and tech firms to increase coverage.
• Offer customized solutions tailored to the specific needs of the customer.

Fiber to the X Industry by Category

By Type:

• Fiber to the Home/Premises/Building (FTTH/P/B)
• Fiber to the Node/Curb (FTTN/C)
• Fiber To The Antenna (FTTA)

By Application:

• Residential
• Commercial
• Industrial

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• The Middle East and Africa(MEA)