PORTLAND, OR — Widespread adoption of 5G, increase in implementation of fiber-to-the-home (FTTH) connectivity, and advent of internet of things (IoT) are expected to propel the growth of the global optical fiber industry, according to a recently published report from Allied Market Research.
The report is titled, “Optical Fiber Market by Mode (Single Mode and Multi-Mode), Type (Glass Optical Fiber and Plastic Optical Fiber), and Industry Vertical (Telecom & IT, Public Sector, Healthcare, Energy & Utilities, Aerospace & Defense, Manufacturing, and Others): Global Opportunity Analysis and Industry Forecast, 2018-2025.” The report provides an extensive analysis of the changing industry dynamics, executive summary, insights on market competition, key segments, and recent developments. As per the report, the global optical fiber market garnered $3.4 billion in 2017 and is expected to reach $8.1 billion by 2025, registering a CAGR of 11.6 percent from 2018 to 2025.
Widespread adoption of 5G, rise in implementation of fiber-to-the-home (FTTH) connectivity, and advent of internet of things (IoT) drive the growth of the industry. However, high cost of installation and widespread presence of wireless communication systems would restrain the market growth. On the other hand, increase in investments in optical fiber cable (OFC) network infrastructure would create new pathways in the industry.
Single Mode Segment Reigns the Global Market in Terms of Revenue
The single mode segment accounted for nearly three-fourths of the total market share in 2017, owing to various associated benefits such as high attenuation & dispersion, huge data-transmission capabilities, and usability within high-speed networks. This segment is expected to remain its dominant position throughout the forecast period. However, in terms of growth rate, the multi-mode segment would supersede the single mode segment, registering the fastest CAGR of 13.1 percent from 2018 to 2025, owing to the feasibility of using such systems for short distances at a significantly lower cost than single-mode.
Healthcare Sector Would Go On To Be the Fastest
The healthcare sector would grow at the fastest CAGR of 16.8 percent from 2018 to 2025, owing to the adoption of advanced biomedical instrumentation for achieving enhanced efficiency in patient monitoring, diagnosis, and treatment. However, the telecom & IT segment contributed more than one-third of the total revenue in 2017, owing to the need for higher bandwidth and faster connections especially across emerging countries. The other segments analyzed in the study are public sector, energy & utilities, manufacturing, aerospace & defense among others.
North America Fastest, Asia-Pacific Dominating
Rise in investments in defense sector & security infrastructure along with increase in adoption of the technology in communication & data transmission services have enabled North America to grow at the fastest CAGR of 14.3% during the forecast period. However, Asia-Pacific region accounted for nearly two-thirds of the total market share in 2017, and will maintain its lead position by 2025, owing to technological advancements and rapid acceptance in the telecom & IT sectors.