Northbrook, IL 60062 -- (SBWIRE) -- 07/12/2022 -- The fiber optics market is projected to grow from USD 4.9 billion in 2022 and is projected to reach USD 8.2 billion by 2027; it is expected to grow at a CAGR of 10.9% from 2022 to 2027.
The growth of this market is driven by factors such as growing internet penetration and data traffic, rising number of data center facilities worldwide, and mounting demand for high bandwidth.
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The growing adoption of 5G communication technology is revolutionizing the fiber optics industry. This technology is gaining more adoption across developing as well as developed economies such as Brazil, India, China, Japan, South Korea, US, Germany, France, the UK, among others. Implementation of 5G network requires high-bandwidth fiber optic cables for secure and reliable data transfers. Subsequently, the expansion of telecommunication infrastructure across developing as well as developed economies will drive the fiber optics market growth in the near future.
The market for aerial deployment segment is expected to grow at high rate during the forecast period. Aerial optical fibers are majorly insulated cables, which contain all fibers required for a telecommunication line. These cables are suspended between utility poles or electricity pylons and are majorly used for fiber to the home (FTTH) applications. These cable provides high flexibility, cost efficiency and provides high speed deployment rate, which increases its adoption among telecom operators. In April 2022, Openreach Limited (UK) announced that it has installed full-fiber broadband to more than 7 million homes and businesses across the UK. The company reported that it was installing about 800 meters of cable every minute and covering more than 50,000 new homes and businesses every week. The deployment was majorly aerial type in the UK. The company also aims to deploy optical fiber to approximately 25 million premises by 2026. The high-speed deployment rate provided by aerial segment will fuel new market opportunities.
The industrial application segment will grow at a faster rate in fiber optics market during forecast period. Favorable government investments to increase the development of smart factory infrastructure is expected to present growth opportunities to fiber optic vendors. In November 2020, the South Korean Government announced plans to build 1,000 new smart factories in the country by 2025. These smart factories are incorporated with automated assembly lines, sensors, conveyor systems, etc. that require continuous connectivity over fiber optics. This will foster the demand for fiber optics in the coming years across the industrial sector.
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In terms of geographic coverage, the fiber optics market has been segmented into four regions, namely, North America, Europe, Asia Pacific and Rest of the World (RoW). The market in Asia Pacific is expected to record the highest growth rate during the forecast period. The market growth is credited to the increasing number of infrastructure development and smart cities projects in China, South Korea and Japan. The proliferation of smart cities will further increase the penetration of smart transportation, smart utilities, smart buildings, and communication infrastructure, that requires fiber optics solutions. This is expected to fuel the fiber optics market growth in coming years.