Overview:

The global fiber optic cables market is set to hit US$ 7.95 Bn by 2026, growing with a CAGR of 7.2% during the forecast period 2018 to 2026. The market is highly driven due to the demand for higher bandwidth and increasing internet traffic across the world. In 2016, the internet influenced sales of whopping US$ 2.1 Tn, due to incremental growth in the number of people using internet across sectors such as e-commerce, online payments and several others. As of March 2017, there are over 3.74 Bn internet users across the globe as compared to 3.26 Bn in 2016. Fiber optic technology has gained immense growth in the recent past due to increasing demand for high speed internet. With continually increasing penetration of internet services worldwide, fiber optics cables market is set to witness robust growth over the forecast period.

Another major factor driving the market growth is introduction of smartphones and other handheld devices such as tablets and laptops. Rapid proliferation of these devices along with improving internet infrastructure has exploded the internet usage across the world in recent years. Similarly, emergence of internet-based industries such as cloud services, e-commerce, social media and several others has uplifted the demand for high speed internet thereby driving the fiber optic cables market. Fiber optics solutions are being engineered for optimal deployment of data centers and enterprise networks, as they support network connections anywhere. In order to support the usage of highly complex applications including content delivery, e-commerce, cloud computing, and data backup, rising need for scalable infrastructure, higher bandwidth, power and cooling continues to grow, augmenting the demand for better and efficient connectivity solutions across various internet-based industries

Growing requirement of high speed internet connectivity continues to drive the fiber optic cables market. However, high costs and complex installation act as major restraining factors for fiber optic cables market. Despite the fact that fiber optic installation costs are dropping by 60% every year, installation of fiber optic cable is relatively expensive as compared to that of copper cables. Advancements in fiber optics technology and inclination of customers towards connected devices in homes, gives a potential opportunity for the market in coming years.

Multi-mode cables segment to retain its dominance over the forecast period followed by the Single Mode Cables segment

Amongst the cable type, the market is dominated by the multi-mode cable segment and is expected to continue its dominance over the forecast period. Multi-mode cables have larger diametric core that allow multiple modes of light (signals) to propagate. These cables are primarily used in metro regions for internet connection, resulting in higher density networks. Due to higher density of metro cables, multi-mode fiber cables witness higher demand as compared to single mode counterparts. Whereas, the diametric core of single-mode cable is small, which allowing only one optical signal to propagate. The single-mode cable is typically used to cover longer distances and offers low power loss as compared to that of multi-mode cable. The segment is expected to have a substantial growth during the forecast period due to growing number of upcoming projects for long-haul networks. However, it is expensive than multi-mode fiber optic cable, thereby limiting its use to long distance networks.

Telecom Sector to Continue Dominating the Market

Telecom is the largest consumer of fiber optic cables contributing to more than 40% of the total market value. The segment includes communication service providers and network infrastructure vendors. Fiber optic technology in data transmission and communication services enable high speed data transfer services both in small and in long range communications. Communication service providers are consistent in adoption of high-speed network infrastructure in order to offer enhanced internet services. Fiber optic cables are widely deployed for various applications ranging from backbone infrastructure of telecommunications to data networking, Ethernet systems and broadband distribution. Fiber optic networks allow telecom network links to be established over longer distances with minimal power loss. The telecom segment is anticipated to continue its dominance in the application arena during the forecast period.

Asia Pacific to be the Fastest Growing Market for Fiber Optic Cables followed by Middle East & Africa

Asia Pacific leads the overall fiber optic cables market worldwide. The market here is primarily backed by China, Japan, Korea, India and Indonesia having significant penetration of fiber optic cables. These countries are expected to increase the deployment of FTTH, due to consistent expenditure over communication infrastructure. China holds the largest market share of more than 1/3rd of the total regional market value. The country has high density of fiber optic networks and is aggressively investing in new fiber optic infrastructure. For instance, in July 2017, China completed laying fiber optic cable on its side for establishing internet connectivity for Nepal through Chinese optical fiber network. In addition, establishment of 5G network solution, will further enhance the demand for fiber optic cables in China.

Furthermore, presence of leading market players such as Fujikura, Furukawa Electric and several others in the region too forms a prominent factor supporting the market growth. Middle East & Africa is estimated to witness an impressive growth in the fiber optic cables market due to growth in the telecom industry and increased industrialization. For instance, the telecom sector in Saudi Arabia has been growing at a rapid pace as the internet penetration in the country increased to 74.9% in 2016. As of January 2017, United Arab Emirates (UAE) has the highest internet penetration in the world with over 99% of its citizens using the internet. In North America and Europe, the fiber optic market has a consolidated structure, whereas in Asia Pacific, the market is fragmented due to large number of regional players operating in the region.

Inorganic expansion to remain the key strategy

The market is highly fragmented in nature due to presence of large number of regional as well as international players. These players are adopting several strategies such as new product launches and mergers & acquisitions in order to sustain their presence in competitive environment. Amongst these, merger & acquisitions forms among the key strategies as it allows the companies to expand their product portfolio and geographic reach, thereby gaining exposure to larger consumer base. For instance, in 2017, Corning, Inc. announced the acquisition of 3M’s Communications Unit. The acquisition is completed to help Corning further expand its geographic reach and optical products offerings.

Some of the major players in the fiber optic cables market include Corning, Inc., Finisar Corporation, Prysmian Group, AFL, Sumitomo Electric Industries, Ltd., LS Cable & System Ltd., Leoni AG, Furukawa Electric Co., Ltd., Finolex Cables Ltd., General Cable Technologies Corporation, Yangtze Optical Fiber and Cable Joint Stock Ltd. Co., and Sterlite Technologies Ltd.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Fiber Optic Cables market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Fiber Optic Cables market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Fiber Optic Cables market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Fiber Optic Cables market?
• Which is the largest regional market for Fiber Optic Cables market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Fiber Optic Cables market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Fiber Optic Cables market worldwide?