Fiber Optic Component Market Size

Fiber Optic Component Market Analysis

The Fiber Optic Component Market is expected to grow at a CAGR of 10.7% over the forecast period 2021 to 2026. This market's growth is propelled by the increasing deployment of data centers, growing internet penetration and data traffic, rising demand for bandwidth and reliability, and developments in the fiber optic components ecosystem.

• With the growing requirement for IoT and more connected devices, data transmission has become essential. According to Forbes, the total installed base of the Internet of Things (IoT) connected devices is projected to amount to 75.44 billion worldwide by 2025, a fivefold increase in ten years. Consequently, the fiber optic component market is observing a significant opportunity for growth during the forecast period.
• Further, technological advancements in the telecom sector have increased the deployment of broadband network architectures. Fiber to the Home (FTTH) and Fiber to the Building (FTTB) are the few prominent broadband networking architectures that necessitate the large-scale deployment of fiber optic networks, hence fiber optic components, thus, driving the fiber optic component market growth.
• Among all the types in the fiber optic components, the market for the transceiver is expected to hold the largest share. Major factors driving the fiber optic components market for transceivers include the higher interconnect capability and high-speed data transmission. For instance, as per Cisco Systems, the average mobile connection speed stood at an estimated 17.7 Mbps worldwide in 2020 against 6.8 Mbps in 2016 and is expected to reach 20.4 Mbps in 2021 globally.
• Moreover, the introduction and adoption of new applications such as wearable devices, IoT, and cloud computing address the change in the needs of consumers. According to the Cisco Visual Networking Index, the number of connected wearable devices worldwide has more than doubled in three years, increasing from 325 million in 2016 to 722 million in 2019. The number of devices is forecast to reach more than one billion by 2022. Hence, the fiber optic component market has been witnessing a considerable opportunity for growth during the forecast period.
• The increasing internet penetration and data traffic are leading to the rapid growth of data centers and the need for high-speed transmission networks, thus fueling the Fiber Optic Component Market. For instance, Cisco Systems forecast that by 2021, there will be 7.2 million data centers in the world, which has generated an ever-greater amount of data and it is projected that by 2021, around 1,327 EB data would be stored in data centers - almost an 8-fold increase from 2015, thus boosting the demand for fibre optic components.
• Among various applications, the communications application accounted for the most significant share of the overall fiber optic components market. The growth of this market can be attributed to the mass utilization of digital technologies and applications in telecommunications, data centers, and enterprises.
• With all this development in the communications application, the demand for fiber optic components would also rise. However, difficulty in managing the failure of passive optical networks (PON) and less range of network devices connection are restraining the growth of this market.