Global Fiber Optic Cable Market Analyzed by Cable Type, Optical Fibre Type, End-user Industry, and Geography
The fiber optic cable market is expected to grow at CAGR of 12.26% during the forecast period (2019-2024).Outdoor optical fiber cable
With the increasing demand for IoT and more number of connected devices, data transmission has become vital for the users, hence the fiber optic cable market is seeing a huge opportunity during the forecast period.
Key Highlights
Further, technological advancements in the telecom sector have increased the deployment of broadband network architectures. Fiber to the Home (FTTH), Fiber to the Building (FTTB) is a few prominent broadband networking architectures that necessitate the large-scale deployment of fiber optic networks, driving demand for fiber optic cables.
The major benefit of fiber optic cable is the increased security option which cannot be tapped than the traditional copper cable is another major factor driving fiber optic cables market.
However, high costs and complex installation act as major restraining factors for fiber optic cables market.
Market Trends
IT & Telecom Sector Offers Potential Growth
Fiber optics is a major building block in the telecommunication infrastructure. With the explosion of information traffic due to the Internet, electronic commerce, computer networks, multimedia, voice, data, and video, the need for a transmission medium with the bandwidth capabilities for handling such vast amounts of information is paramount. Fiber optics, with its comparatively infinite bandwidth, has proven to be the solution.
Additionally, with the emergence of 5G, IoT and Big Data will rely heavily on real-time data collection and transfer. And because of fiber optics unlimited bandwidth potential, fiberoptics cable is chosen to support these bandwidth levels.
Further, to achieve expected performance levels for 5G networks, more small cells (or nodes) and mobile edge computing will be needed to eliminate network bottlenecks. These small-cell deployments often utilize the millimeter wave spectrum, relying heavily on fiber cabled connections for the backhaul portion of the network.
The launch of 5G will bring enhanced capacity and lower latency straight to networks. Fiber optics cable is the preferred option for 5G because of its scalability, security, and ability to handle the vast amount of backhaul traffic being generated. This in return will create a huge market opportunity for the fiber optic cable market in IT and Telecom.
Asia-Pacific to Witness a Significant CAGR
The Asia-Pacific region is dominated by two major economies of the world i.e. India and China. These regions are spearheading revenue growth owing to technological advancements and large-scale adoption of the technology in IT and telecommunication and administrative sector.
Additionally, increasing application of fiber optics in the medical sector is catapulting growth across countries, such as China, Japan, and India, thus propelling the overall demand at a significant rate.
Also, the consistent rise in the use of smartphones and internet facilities in the region contributes to the adoption of optical fiber cables, for telecommunication applications. 5G connections (excluding IoT) are anticipated to reach USD 670 million in Asia-Pacific, by 2025, accounting for approximately around 60% of the global 5G connections, according to GSMA.
Moreover, the governments of developed nations like China and Japan are heavily investing in security infrastructure at country levels. In return, all the above factors are expected to pave the way for new opportunities, in the fiber optic cable market.
