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2022

Fiber Optic Component Market

Fiber Optic Component Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type, by Data Rate, by Application : Global Opportunity Analysis and Industry Forecast, 2022-2031

SE : Electronic Systems and Devices

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Author's: Vaishnavi Shyamsundar Mate | Sonia Mutreja
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Fiber Optic Component Market Research, 2031

The global fiber optic component market size was valued at $23.6 billion in 2021, and is projected to reach $53.6 billion by 2031, growing at a CAGR of 8.8% from 2022 to 2031.

According to Vaishnavi Mate Lead Analyst, Semiconductor and Electronics, at Allied Market Research, the fiber optic component market growth is expected to showcase significant growth during the forecast period of 2022-2031. The report contains a thorough examination of the market size, fiber optic component market trends, key market players, sales analysis, major driving factors, and key investment pockets. The report on the global fiber optic component market outlook provides an overview of the market as well as market definition and scope.

Fiber optic hardware components are used for communications both within and between data centres. Owing to 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.

Fiber Optic Component Market

Fibre optic–based storing and telecommunication technologies were judged safer than copper wires retention and telecommunication systems. Factors such as growth in fiber optic active components such as 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. However, fragile nature of fiber optic components may hamper the growth of the market. Furthermore, increase in telecom infrastructure is expected to offer lucrative fiber optic component market opportunity for market expansion.

The fiber optic component market is segmented into Data Rate, Application and Type.

Fiber Optic Component Market by Type

On the basis of type, the market is classified into cables, amplifiers, active optical cables, splitters, connectors, transceivers and others. The cables segment dominated the Fiber Optic Component Market Share, in terms of revenue in 2021, and is expected to follow the same trend during the forecast period.

Fiber Optic Component Market by Data Rate

On the basis of data rate, it is categorized into 10 G, 40 G, 100 G and above 100 G. The 100 G segment dominated the fiber optic components industry, in terms of revenue in 2021, and is expected to follow the same trend during the fiber optic component market forecast.

Fiber Optic Component Market by Application

By application it is divided into communications, distributed sensing, analytical and medical equipment and lighting. The communications segment accounted for the highest market share in 2021, and the distributed sensing segment is expected to grow at a high CAGR from 2021 to 2031.

Fiber Optic Component Market by Region

By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA along with their prominent countries. Asia-Pacific was the highest revenue contributor to the market.

COMPETITION ANALYSIS

Competitive analysis and profiles of the major Furukawa Electric, Sumitomo Electric Industries, Lumentum Holdings Inc., Accelink Technologies Co., Ltd,II-VI Incorporated, Broadcom Inc., Acacia Communications, Inc.,Fujitsu Optical Components, EMCORE Corporation, and Tongding Interconnection Information Co Ltd. These key players adopt several strategies such as new product launch and development, acquisition, partnership and collaboration and business expansion to increase the fiber optic components market share during the forecast period.

COUNTRY ANALYSIS

Country-wise, the China acquired a prime share in the fiber optic components market in the Asia Pacific region and is expected to grow at a significant CAGR during the forecast period of 2019-2031.China holds major market share in terms of revenue generation from the sale of cables because of the higher presence of presence of the cable manufacturers.

In Europe, the UK, dominated the fiber optic components market, in terms of revenue, in 2021 and is expected to follow the same trend during the forecast period. However, Germany is expected to emerge as the fastest-growing country in Europe's fiber optic components with a notable CAGR, due to advancement in the communication which drives the usage of data centers in the country and thus creates lucrative growth opportunities for the fiber optic components market in Germany.

In North America, U.S. is expected to emerge as a significant market for the fiber optic components industry, owing to increase adoption of cloud computing and internet service are driving the demand for fiber optic components in North America.

By LAMEA region, the Latin America country garner significant market share in 2021 In Latin America, the Greenfield and modular data center development projects boost growth of the data center. High investments in data center are boosting the fiber connectivity, and reliability in power supply. In September 2021, AWS has announced the new data centers in New Zealand by 2024, these factors are expected to reshape the growth of fiber optic components market in the Middle East.

TOP IMPACTING FACTORS

The significant factors impacting the fiber optic component industry include rise in trend of data centers, surge in adoption of fiber based internet connection by businesses and increasing preference for smart city projects in developing economies is expected to create lucrative growth opportunities for the fiber optic components market in the near future. However, large capital expenditure restricts the market growth up to a certain level.

IMPACT OF COVID-19 OUTBREAK

The semiconductor industry globally has been impacted by the spread of Covid-19 and improvements are expected to be completed in the upcoming years with more efficiency in order to make up for lost opportunities during lockdowns.

HISTORICAL DATA & INFORMATION

The global fiber optic component industry is highly competitive, owing to the strong presence of existing vendors. Vendors of the fiber optic components market with extensive technical and financial resources are expected to gain a competitive advantage over their competitors because they can cater to market demands. The competitive environment in this market is expected to increase as advancement in communication application, product extensions, and different strategies adopted by key vendors increase.

KEY DEVELOPMENTS/ STRATEGIES

Furukawa Electric, Sumitomo Electric Industries, Lumentum Holdings Inc., II-VI Incorporated, Broadcom Inc., are the top 5 companies holding a prime share in the fiber optic components market. Top market players have adopted various strategies, such as product launches, contracts, and others to expand their foothold in the fiber optic components market.

  • In September 2022, Fujitsu developed an optical transmission technology capable of delivering up to 1.2 Tbps per optical wave, or the equivalent of six Blu-ray discs (25 GB) per second.
  • In August 2022, Broadcom Inc. and Tencent Holdings Ltd. made the partnership to accelerate the adoption of high bandwidth co-packaged optics (CPO) network switches for cloud infrastructure. Under this partnership, Broadcom provided the 25.6-Tbps Humboldt CPO switch device that features Broadcom's best-in-class StrataXGS Tomahawk 4 switch chips directly coupled and co-packaged with four 3.2-Tbps Silicon Photonics Chiplets in Package (SCIP) optical engines.

KEY BENEFITS FOR STAKEHOLDERS

  • This study comprises an analytical depiction of the market size along with the current trends and future estimations to depict the imminent investment pockets.
  • The overall Fiber Optic Component Market Analysis is determined to understand the profitable trends to gain a stronger foothold.
  • The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
  • The current global fiber optic components market forecast is quantitatively analyzed from 2021 to 2031 to benchmark financial competency.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the fiber optic components market.
  • The report includes the market share of key vendors and global fiber optic components market trends.

Fiber Optic Component Market Report Highlights

Aspects Details
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Market Size By 2031

USD 53.6 billion

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Growth Rate

CAGR of 8.8%

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Forecast period

2021 - 2031

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Report Pages

249

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By Data Rate
  • 10 G
  • 40 G
  • 100 G
  • Above 100 G
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By Application
  • Communications
  • Distributed Sensing
  • Analytical and Medical Equipment
  • Lighting
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By Type
  • Cables
  • Amplifiers
  • Active Optical Cables
  • Splitters
  • Connectors
  • Transceivers
  • Others
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (UK, Germany, France, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

Furukawa Electric Co., Ltd., Accelink Technologies Co., Ltd, II-VI Incorporated, Lumentum Holdings Inc., Acacia Communications, Inc., Fujitsu Optical Components, Broadcom Inc., Sumitomo Electric Industries, EMCORE Corporation, Tongding Interconnection Information Co Ltd

Analyst Review

The fiber optic components market possesses high potential for the telecom industry. In the current business scenario, the demand for fiber optic components, particularly in the developing regions, is witnessing a significant increase, owing to rise in trend of cables and increase in adoption of transceivers for advanced communication. Thus, companies operating in fiber optics industry adopt various innovative techniques to provide customers with advanced and innovative product offerings.

Technological advancements have augmented the overall industrial development within a wide range of industries. In April 2020, Sumitomo Electric Industries, Ltd. announced that it has acquired Thunderbolt 3 certification for its new active optical cables (AOCs) from Intel Corporation, the company that established the Thunderbolt 3 standard. Sumitomo Electric developed 40 Gbps Thunderbolt 3 AOCs for high-speed transmission to meet the needs for long-distance transmission. In the near future, adoption of transceivers and demand for larger bandwidth for faster network connectivity is expected to create lucrative opportunities for the key players operating in the fiber optic components market.

Asia-Pacific is projected to dominate the market during the forecast period due to development of several fiber optic components and increasing demand for larger bandwidth for faster network connectivity. China is a major hub for fiber optic components shipments across the globe, which boosts the growth of the fiber optic components market in the region.

Author Name(s) : Vaishnavi Shyamsundar Mate | Sonia Mutreja
Frequently Asked Questions?

Asia-Pacific is accounted for the largest market share in fiber optic component market.

The fiber optic components market size valued at at $23,644.0 million in 2021.

Communication segment is the leading application of fiber optic component market.

The key trends of fiber optic components market include rise in trend of data centers, surge in adoption of fiber based internet connection by businesses and increasing preference for smart city projects in developing economies is expected to create lucrative growth opportunities for the fiber optic components.

Furukawa Electric, Sumitomo Electric Industries, Lumentum Holdings Inc., II-VI Incorporated, Broadcom Inc are the top companies to hold the market share in fiber optic component.

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Fiber Optic Component Market

Global Opportunity Analysis and Industry Forecast, 2022-2031