According to the latest market study released by Technavio, the global fibre optic components market is projected to grow at a CAGR of more than 10% over the forecast period – from 2016 through to 2021.
Global Fibre Optic Components Market 2017-2021 provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.
The report states, “Many firms are choosing to move from copper cabling to fibre optic cabling because of its diverse benefits such as lower attenuation, high return on investment, and support for high bandwidth applications. Thus, the demand for fibre optic components will increase as they allow the efficient deployment and functioning of fibre optic cables.”
Based on the end-users, the report categorises the global fibre optic components market into the following segments: data communication, telecommunications and enterprise networks.
“The data communication segment of the fibre optic components market occupies a majority 43% of the overall shares and will continue to grow swiftly over the forecast period. Data communication is the process of transferring information from a sender to a receiver through a medium,” says Raghu Raj Singh, a lead analyst at Technavio for lighting research.
The segment includes sales of fibre optic components to major firms that are focusing on deploying fibre optic networks for data transmission and interconnection purposes at data centres. Increasing investments in data centre construction and the need for secure data transmission are the major reasons for the growth of the segment.
In 2016, the global fibre optic components market by telecommunication was valued at $6.16 billion. The segment includes the sales of fibre optic components to firms, such as networking equipment and telecommunication equipment manufacturers, ISP, wireless operators, that purchase these components for the deployment of fibre optics.
The major reasons for the growth of the segment include the increase in Internet traffic that leads to large bandwidth requirements for streaming media, video conferencing, Malware, and growth of Wi-Fi. The growth of FTTx will also impact the fibre optic components market due to its wide array of applications in the telecommunication sector.
“The enterprise segment comprises of companies that employ stand-alone enterprise servers for their Internet requirements. The scope of this segment excludes telecom firms and data centre providers who have adopted fibre optic connections to support the high bandwidth demand,” commented Raghu.
The growth of big data and data analytics by enterprises that create enormous amounts of data daily is an important factor impacting the growth of the market segment.
Firms use big data to identify repeating patterns take decisions based on that. The increasing need for high Internet speed by enterprises to provide high-speed connections to their employees for running daily business operations is another important driver.
The top vendors highlighted by Technavio’s research analysts in this report include: Amphenol, Corning, Finisar, Fujikura, Furukawa Electric and Sumitomo Electric Industries.