July 1, 2018
According to a new market report published by Transparency Market Research (TMR), the global fiber optic connectivity market is expected to reach a value of US$4.19 billion by 2026, owing to the increasing usage of optical components in energy efficient networks.
The market is projected to expand at a CAGR of 10.5% during the forecast period from 2018 to 2026. Asia Pacific is anticipated to experience healthy growth followed by Middle East & Africa during the forecast period. Smart cities segment holds the dominant share in the global fiber optic connectivity market, due to increasing developments and investments in smart city projects across the globe.
“Optical components help in saving the total cost of ownership by a huge margin, as the cost of installation of fiber optic equipment and components is low,” TMR said in a release.
“In a fiber optic network, the closet and switches can be mounted on the smallest of spaces available, in turn saving 45% of the capital expenditure. 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, which helps to save 75% of the cost. In addition, the highly-efficient equipment promises high return on investment.
This low cost of ownership is achieved with fiber optic components by using a highly-centralized distribution network, which is passive in nature. With savings in both capital and operating expenditure, fiber optics leads to considerable savings in the total cost of ownership. Additionally, increasing deployment of fiber optic networks across multiple industries is expected to supplement the growth of the fiber optic connectivity market during the forecast period.
Findings indicate that the hardware component of the fiber optic connectivity market is anticipated to experience flourishing growth during the forecast period.
“This is mainly due to the strong demand for fiber optic components such as cable assemblies, connectors, switches, and others such as enclosures/ fiber boxes. By 2026, the hardware component of fiber optic connectivity is projected to cover more than 75% of the global market. In terms of industry segment, smart cities segment is projected to dominate the global fiber optic connectivity market. Smart cities mainly include building automation and street furniture.”
Additional information on the study is available at www.transparencymarketresearch.com.