In 2019, the fiber optic components market was valued at approximately US$16,546.7 million and is anticipated to grow to around US$39,150.3 million by 2027, reflecting a compound annual growth rate (CAGR) of 11.3% from 2020 to 2027.
Optical fiber communication technology stands as a cornerstone of the contemporary digital landscape. This technology facilitates data transmission through fiber cables utilizing light wave technology. The optical fiber communication system comprises a variety of components, including transceivers, optical amplifiers, couplers/splitters, WDM multiplexers and demultiplexers, filters, isolators, circulators, attenuators, optical switches, wavelength converters, and various functional modules essential for data transmission. Telecommunications organizations leverage optical fiber communication technology for numerous applications, including telephone services, internet connectivity, and various media and entertainment telecommunications. The growing demand for efficient communication infrastructure is expected to propel the growth of the optical fiber component market.
A significant factor contributing to the expansion of the global optical fiber component market is the increasing establishment of data centers worldwide. The widespread adoption of digital technologies for business operations has led companies to invest heavily in data centers to ensure a robust digital framework. Additionally, the shift towards remote working, accelerated by the COVID-19 pandemic, has further encouraged businesses to embrace data center solutions. The rising volume of data globally, driven by enhanced internet infrastructure, lower internet costs, and an increasing number of smartphones and connected devices, is another element positively influencing the growth of the optical fiber component market. However, challenges such as the risk of physical damage and potential data loss over long distances pose obstacles to market growth. As governments worldwide advocate for digitization, the optical fiber component market is expected to encounter numerous growth opportunities in the near future.
The global optical fiber component market is categorized based on type, data rate, and application. In terms of type, the market is divided into cables, active optical cables, amplifiers, splitters, connectors, circulators, transceivers, and other components. Regarding data rate, the market is segmented into 10G, 40G, 100G, and rates exceeding 100G. Furthermore, based on application, the market is classified into communications, distributed sensing, analytical and medical equipment, and lighting.
According to the latest report from the World Health Organization (WHO), countries such as the US, Spain, Italy, France, Germany, the UK, Russia, Turkey, Brazil, Iran, and China have been severely impacted by the COVID-19 pandemic. The outbreak, which originated in Wuhan, China, in December 2019, has rapidly spread across the globe. The COVID-19 crisis has disrupted industries worldwide, and the global economy is expected to suffer significantly in 2020 and 2021. The pandemic has caused considerable interruptions in the construction sector, with a sharp decline in international trade adversely affecting economic growth. Production halts, supply chain restrictions, challenges in procurement management, labor shortages, and border lockdowns aimed at controlling the outbreak have negatively impacted the construction industry. This slowdown in construction directly influences the adoption of various technologies, including fiber optic components, as telecommunications companies have curtailed their investments in technology solutions in response to the current situation.
The overall size of the fiber optic components market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aims to provide an overview and forecast for the fiber optic components market across all segments relevant to the region. Additionally, numerous primary interviews have been conducted with industry participants and commentators to validate the data and gain deeper analytical insights into the subject. Participants in this process typically include industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, along with external consultants like valuation experts, research analysts, and key opinion leaders specializing in the fiber optic components market. Major players in the global fiber optic components market include Accelink Technology Co. Ltd., Broadcom Inc., Emcore Corporation, Fujitsu Ltd., Furukawa Electric Co., Ltd., Lumentum Operations LLC, O-Net Technologies, Reflex Photonics Inc., and Sumitomo Electric Industries, Ltd.