According to Transparency Market Research, the global fiber optic connectivity market will reach a value of $4,194.6 Mn by 2026, owing to a rise in usage of optical components in energy efficient networks.
The research firm predicts a 10.5% increase in revenue generation within the market between 2028 and 2026.
The smart cities segment is expected to generate the highest revenue within the fiber optic market due to increasing developments and investments in smart city projects.
To date, Europe is leading other regions as EU countries account for 35% share of the globe’s optic fiber installations. The lead is mainly a result of strong penetration of fiber optic technology across various industries especially wind power, oil & gas, mining, as well as a number of smart city projects. In addition, the growth of the fiber optic connectivity market across the region is mainly supplemented by increasing demand for high data transmission across various industries.
The Asia Pacific is anticipated to experience healthy growth in adopting fiber optic networks followed by Middle East & Africa. Growth in the Asia Pacific will be driven by the Chinese market, which is transitioning from wireless to wired optical communication. The change in communication model is resulting from mass adoption of electronic gadgets and creation of a high volume of data traffic.
The low total cost of ownership and high return on investment associated with fiber optic networks will drive the global market.
According to Transparency, fiber optic networks save 45% of capital expenditure associated with installing a network and helps save 75% of cost associated with upgrading a network.
“In a fiber optic network, upgrades are much easier, as it uses the existing optical cable and only the electronics need to be replaced, rather than replacing the whole infrastructure…”
The hardware component of the market is anticipated to account for more than 75% of the global market by 2026. This is mainly due to the strong demand for components such as cable assemblies, connectors, switches, and others such as enclosures/ fiber boxes.