Fiber Optic Components Market Size

Fiber Optic Components Market Overview

Fiber Optic Components Market Size was valued at USD 24.1 Billion in 2022. According to projections, the Fiber Optic Components market business will expand from USD 26.3895 billion in 2023 to USD 54.543639 billion by 2032, growing at a compound annual growth rate (CAGR) of 9.50% over the forecast period (2023-2032). The telecommunications industry is experiencing a significant increase in demand, particularly in emerging markets. There is also a growing need to upgrade existing infrastructure with more advanced systems. Additionally, there has been a surge in the evolution of cellular network technology, and developing economies are seeing a rise in infrastructural development activities, which are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Fiber Optic Components Market Trends

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  Growing demand for high-speed Internet is driving the market growth

  
  

The Fiber Optic Components Market is the increasing demand for high-speed internet services. With the rising popularity of bandwidth-intensive applications like streaming, online gaming, cloud computing, and IoT devices, there is a substantial need for faster and more reliable internet connections. Fiber optic components, such as transceivers, connectors, and cables, enable the high-speed data transmission necessary to meet these demands. This trend is further accentuated by the global push for 5G networks, requiring robust fiber optic infrastructure for efficient data transfer. Fiber optic infrastructure not only provides faster and more reliable internet connections but also offers greater bandwidth capacity compared to traditional copper-based networks. Additionally, the low latency and immunity to electromagnetic interference make fiber optics an ideal choice for supporting the increasing number of connected devices in the era of IoT. This factor drives the market CAGR.

Additionally, the rapid expansion of data centers worldwide. Data centers form the backbone of digital services for many documents and provide a good online experience. Fiber optic components are important in these areas, connecting servers, storage systems, and networking products. The increasing popularity of cloud computing, big data analytics, and artificial intelligence technology has led to the construction of multiple data centers, increasing the need for fiber optic equipment that will provide high-speed, low-latency data transmission in these areas.

The deployment of 5G networks is a major trend shaping the fiber optic components market. 5G technology promises significantly faster data speeds, reduced latency, and increased connectivity. Fiber optic components play a vital role in 5G networks, providing the necessary infrastructure for connecting cell towers, data processing centers, and end-users. As 5G networks continue to roll out globally, the demand for fiber optic components, especially those capable of handling higher frequencies and data rates, is experiencing substantial growth.

For instance, in April 2020, Intel Corporation, the organization that created the Thunderbolt 3 standard, stated that Sumitomo Electric Industries, Ltd. had obtained Thunderbolt 3 certification for its new active optical cables (AOCs). To satisfy the demands of long-distance transmission, Sumitomo Electric created 40 Gbps Thunderbolt 3 AOCs for high-speed information. Thus, driving the Fiber Optic Components market revenue.

Fiber Optic Components Market Segment Insights

Fiber Optic Components Data Rate Insights

The Fiber Optic Components Market segmentation, based on data rate, includes 10 G, 40 G, 100 G, and Above 100 G. The dominant segment is above 100 G, holding approximately 50-55% of the market share. This category dominates due to the increasing demand for high-bandwidth applications such as 5G, cloud computing, and data center interconnects. The fastest-growing segment, however, is 100 G, constituting around 25-30% of the market. The 100 G category offers a balance between speed and cost-efficiency, making it widely adopted in various networking applications, including enterprise networks and metropolitan area networks. The demand for 100G components is rapidly increasing due to their capacity and ability to meet various high-speed connectivity needs.

Figure1: Fiber Optic Components Market, by Data Rate, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Fiber Optic Components Application Insights

The Fiber Optic Components Market segmentation, based on application, includes Communications, Distributed Sensing, Analytical and Medical Equipment, and Lighting. The dominant segment is communications, constituting approximately 60-65% of the market share. The primary reason for its dominance is the ever-increasing demand for high-speed and reliable data transmission in telecommunications networks, including Internet, voice, and video services. Furthermore, the fastest-growing segment, however, is Distributed Sensing, accounting for around 20-25% of the market. Distributed sensing applications, including environmental monitoring, oil and gas pipeline monitoring, and structural health monitoring, leverage fiber optic components for their precision, durability, and real-time data collection capabilities.

Fiber Optic Components Type Insights

The Fiber Optic Components Market segmentation, based on type, includes Cables, Amplifiers, Active Optical Cables, Splitters, Connectors, Transceivers, and Others. The dominant segment is connectors, constituting approximately 30-35% of the market share. Connectors are essential components in fiber optic networks, facilitating the seamless connection of optical fibers and ensuring efficient data transmission. The fastest-growing segment, however, is Transceivers, accounting for around 25-30% of the market. Rapidly increasing demand and reliable data transmission, especially in new technologies such as the Internet of Things and cloud computing, are increasing the speed of transceivers.

Fiber Optic Components Regional Insights

The study provides market information for North America, Europe, Asia Pacific, and Rest of the World by region. The North American Fiber Optic Components market area will dominate this market due to advanced telecommunications infrastructure with widespread fiber-optic network deployments, especially in urban centers. The region is a hub for technological innovation and houses many key players in the fiber optic industry, which will boost market growth in this region.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, and South Korea.

Figure: Fiber Optic Components Market Share by Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Fiber Optic Components market accounts for the second-largest market share due to the investments in digital infrastructure, including fiber-optic networks, driven by initiatives to achieve widespread broadband connectivity. Further, the German Fiber Optic Components market held the largest market share, and the UK Fiber Optic Components market was the fastest-growing market in the European region.

The Asia-Pacific Fiber Optic Components Market is witnessed to grow at the fastest CAGR from 2023 to 2032. This is due to the region experiencing rapid economic growth and urbanization, leading to increased demand for high-speed Internet and digital services. Moreover, China’s Fiber Optic Components market held the largest market share, and the Indian Fiber Optic Components market was the fastest-growing market in the Asia-Pacific region.

Fiber Optic Components Key Market Players & Competitive Insights

Leading manufacturers have made sizable investments in R&D to broaden their product lines, which has fueled the expansion of fiber optic products. Market participants are also engaging in various strategic initiatives to extend their global presence. These important market developments include the introduction of new products, entering into contractual agreements, pursuing mergers and acquisitions, increasing investments, and establishing collaborations with other organizations. In order to thrive in an increasingly competitive and expanding market environment, the Fiber Optic Components industry must offer cost-efficient offerings.

Local manufacturing to reduce operating costs is one of the key business strategies adopted by Fiber Optic Components Market companies to benefit customers and business expansion. Some of the biggest benefits to medicine in recent years have come from the fiber optic component market. Market leaders for fiber optic components, including Tongding Interconnection Information Co. Ltd., Furukawa Electric Co., Ltd., EMCORE Corporation, Sumitomo Electric Industries, Accelink Technologies Co., Ltd, Broadcom Inc., Lumentum Holdings Inc., Acacia Communications, Inc., Fujitsu Optical Components, II-VI Incorporated.

Infinera Corporation is a global supplier of optical telecommunications equipment, offering solutions for long-haul, subsea, data center interconnect, and metro networking. Infinera is a manufacturer of optical transmission equipment with its headquarters in Sunnyvale, California, and was founded in 2000. It offers software-defined networking solutions, optical transport networking systems, and digital coherent optics technology. Infinera's technology aims to enable network operators to scale bandwidth while reducing costs.

The company is known for its innovative approach to optical networking, providing solutions for high-speed data transmission in various network environments. In February 2020, Infinera and Lumentum Holdings Inc. (Lumentum) unveiled a partnership aimed at introducing networking solutions based on XR optics. XR optics incorporates point-to-multipoint coherent optical aggregation technology, making it a groundbreaking development in optical networking that has the potential to revolutionize the economics of transport architectures.

The aerospace & defense, as well as broadband communications businesses, are served by EMCORE Corporation, a world pioneer in innovative mixed-signal solutions. For the aerospace and defense sectors, EMCORE offers a wide range of compound semiconductor-based solutions, as well as optical parts, subsystems, and systems for cable television (CATV) and fiber-to-the-premises (FTTP) networks. Additionally, EMCORE is renowned for its invention in photovoltaic and optoelectronic technology.

The company's commitment to research and development ensures it stays at the forefront of technological advancements. Additionally, EMCORE emphasizes stringent quality control measures to deliver high-quality, dependable products to its customers. In July 2021, EMCORE Corporation and Raytheon Intelligence & Space, an aerospace, and Defense Company, signed an agreement. This contract entails the supply of advanced Fiber Optic Gyroscopes for airborne optical targeting systems.

Key Companies in the Fiber Optic Components market include

• Tongding Interconnection Information Co Ltd


• Furukawa Electric Co., Ltd.


• EMCORE Corporation


• Sumitomo Electric Industries


• Accelink Technologies Co., Ltd


• Broadcom Inc.


• Lumentum Holdings Inc.


• Acacia Communications, Inc.


• Fujitsu Optical Components


• II-VI Incorporated

Fiber Optic Components Industry Developments

In June 2024, Integra Optics, a trademark of Infinite Electronics and a global supplier of high-quality fiber optic components for telecommunication carriers, has introduced its new XGSPON OLT transceiver. This transceiver, known as SFP+, operates at a speed of 10/2.5 Gbps and has a BiDi (Bidirectional) capability, allowing data transmission over a distance of 20 kilometers. This state-of-the-art optical transceiver module is specifically built for XG/XGS-PON 10/2.5 G applications. It provides exceptional performance over a single strand of fiber and can support links up to 20 kilometers in length.

The XGSPON OLT optical module has the capability to circumvent the need for external WDM equipment in the network architecture, resulting in a reduction of network construction and maintenance expenses. Additionally, it provides network operators with a smooth transition from GPON (which has lower data rates) to XGS-PON (which can reach speeds of up to 10 Gbps) without requiring any modifications to the existing infrastructure. This is a cost-effective method for adapting to increasing bandwidth requirements. This revolutionary product has several key benefits. It has a reach of 20 km over single-mode fiber and operates at outstanding data speeds of 10/2.5 Gbps. This allows network operators to extend their networks without compromising on speed or reliability.

Fiber Optic Components Market Segmentation

Fiber Optic Components Data Rate Outlook

• 10 G


• 40 G


• 100 G


• Above 100 G

Fiber Optic Components Application Outlook

• Communications


• Distributed Sensing


• Analytical and Medical Equipment


• Lighting

Fiber Optic Components Type Outlook

• Cables


• Amplifiers


• Active Optical Cables


• Splitters


• Connectors


• Transceivers


• Others

Fiber Optic Components Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America