Fiber Optic Cable Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Fiber Optic Cable Market Analysis

The Fiber Optic Cable Market is expected to register a CAGR of 14.5% during the forecast period.​ Increasing demand in FTTX and the telecommunications industry and technological advancements are primarily responsible for the increased growth of the market.

• Fiber optic cables primarily contain strands of glass fibers inside an insulated casing. They are designed for long-distance, high-performance data networking, and telecommunications. Compared to wired cables, fiber optic cables provide higher bandwidth and can transmit data over longer distances. Fiber optic cables support the internet, cable television, and telephone systems.
• Bandwidth demand is likely to remain strong in the future, driven partly by the need for breakthrough applications such as better quality video, virtual reality, and others. And anticipate that this need will continue to fuel the demand for fiber-based optical spectrum. Fiber standards, such as G.652 and G.657, are critical for network builders in establishing minimum performance criteria, although they may eventually be insufficient to satisfy the needs of future networks.
• According to TeleGeography's submarine cable map, submarine cables act as the backbone of the internet. About 350 submarine cables span 1.2 million kilometers, connecting 100 countries. According to SubmarineNetworks.com, the world of submarine cables is transforming rapidly, with data compiled by Telegeography indicating USD 8 billion investments lined up in 2019-21.​
• Optical fibers have also been getting smaller owing to the deployment challenges being raised by various applications. As telecom operators have also been looking for high fiber count cables in reduced diameters, cable manufacturers are investing in R&D to realize smaller cables.
• COVID-19 has affected the global economy in multiple ways, that includes disruption in production and demand by creating supply chain issues and by its financial impact on firms and financial markets.​ One of the significant concentrations of the fiber optics supply chain is in Wuhan, home to Fiberhome, YOFC, and Accelink, among other companies, that comprise a major portion of the global optical fiber production capacity. During the initial phase of the pandemic, the demand was usually weak. However, the production continued at reduced levels.

Fiber Optic Cable Industry Segments

Fiber optic technology utilizes highly flexible, transparent fiber comprised of extruded glass or plastic to transmit data. A fiber optic cable incorporates glass threads as thin as human hair, each of which can transmit messages modulated into light waves. Although these cables are made with glass, they are highly durable and malleable. The report encompasses the study of the use of fiber optic technology across the IT, telecom, and BFSI sectors for data storage, in the medical sector for medical imaging and laser guiding, in military and defense for networking for aircraft, submarines, and other vehicles, in broadcasting networking for wiring CATV, internet, video-on-demand, and industrial imaging for difficult areas, sensory, and measurement purposes. The report study also covers the market segmentation by material, cable type, and geography.​

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Fiber Optic Cable Market Trends

This section covers the major market trends shaping the Fiber Optic Cable Market according to our research experts:

IT and Telecom Sector is Expected to Witness Significant Growth

• Optical fiber cable (OFC) is a significant building block in the telecommunication infrastructure. Over the last decade, fiber optics cater to increasing bandwidth demands, especially telecommunication companies, and have become the preferred transmission medium. ​
• The explosion of data traffic from various sources, such as the internet, e-commerce, computer networks, and multimedia (voice, data, and video), has led to the need for a transmission medium capable of handling higher bandwidth for such vast amounts of information. Fiber optic cables, with comparatively infinite bandwidth, have proven to be the solution.​
• Optical fiber is a critical component of both mobile and fixed broadband networks. Faster fiber deployment is crucial to massive backhaul amounts of data at high speed, boosting dependability and lower latency. The region's telecommunications businesses are extending their offerings by introducing new spectrum installations. For example, according to Bharti Airtel, the Department of Telecom (DoT) would get Rs 8,312 crore in August 2022 for spectrum bought in the recently completed 5G auctions.
• Enhanced telecom and Broadband connectivity will boost tourism and employment generation in the Islands, further impen the economy and raise living standards. The new network will deliver faster and more reliable mobile and landline telecom services to the Andaman and Nicobar Islands, at par with other parts of the country. ​
• Moreover, owing to their security, scalability, and unlimited bandwidth potential to handle the vast amount of backhaul traffic being generated, fiber optic cables are also being chosen to support the bandwidth levels catering to advanced technologies like 5G, Big Data, and IoT that rely heavily on real-time data collection and transfer. The launch of 5G is expected to enhance the capacity and lower latency straight to networks.​

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