Fiber Optics Business Outlook and Business Recovery


Fiber Optic Business Outlook

Fiber optics is defined as the technology to transmit the information as pulses of light over long distances from one point to another. The fiber consists of a few to hundred strands made up of glass or plastic which act as the medium for transmission. These optical fiber cables are transparent and flexible which operate on the scientific principle of total internal reflection. According to the market database, the telecommunications industry is the largest end-user of this technology as its acts as a crucial vehicle to transfer information at greater speeds along with higher bandwidth.

These cables offer several advantages as compared to traditional copper wire systems. Market research reports state that fiber cables are immune to electromagnetic fluctuations caused due to bad weather conditions. This immunity prevents any form of interruptions that can affect the transmission quality. As these cables are non-metallic, they do not carry any current and cannot generate a spark which proves to be much safer than other forms of transmission channels.

Cable Form & Fiber Type:

Based on the form of cable utilized the market is divided into single-mode fiber and multi-mode fiber. Both types are used for transmitting information from one point to another. The difference arises in terms of fiber core diameter, wavelength, light source, bandwidth, distance, color sheath, and cost. According to the market database, multi-mode-based fiber has experienced a greater share in the market as it is less costly and can achieve higher speeds. The single-mode fiber is utilized for distances ranging from 2 meters to 10,000 meters. Single-mode type fibers provide low power loss during the transmission but at the same time are most costly as compared to the multi-mode type of fibers.

Based on technology, glass and plastic are two types of materials to attain efficient flexibility. The glass fiber type has contributed significantly towards various industrial applications. According to market research tools, factors like the easier availability and high-performance factors of the glass type-based fibers are expected to propel growth.


End-User Analysis:

The market database indicates that communication and non-communication are the two sections for which these cables are utilized. Based on the communication vertical the section is further sub-divided into telecom, premises, utility, medical, CATV, military, and other types. The telecom module has dominated the use cases to provide fast transmission of information. The business outlook for this industry type is expected to stay positive. The medical and healthcare industry has also experimented with the use of fiber optics in critical scenarios. According to free-market data from market research tools, greater emphasis on R&D activities has led to applications in X-ray imaging, ophthalmic lasers, clinical diagnosis, light therapy, surgical endoscopy, and more.

Market intelligence tools state that platforms like factory automation, rail transportation, power generation, deep ocean networks, and others are expected to drive growth. The non-communication vertical has made use of fiber optics in form of sensors and fiber optic lighting.



Broadband Architecture (FTTx):

FTTx is defined as a broadband architecture that makes use of fiber optics as the optical medium to transmit information for the last-mile telecommunication module. The market penetration rate of this technology can be understood through Global Market Database. The market research tool studies the shift in line with changing market trends.

According to the market database, the FTTx has varied types which include Fiber to The Home (FTTH), Fiber to The Premises (FTTP), Fiber to The Building (FTTB), Fiber to The Curb (FTTC), and Fiber to The Neighborhood (FTTN). The advancement in the telecom module has allowed innovation in broadband architectures to cater to the demand for high-quality information at faster speeds. High-Definition (HD) video technology has utilized the maximum bandwidth at homes and business premises. The business outlook for this segment can be analyzed through market research tools.

Market research reports state that FTTH and FTTP are 100% fiber connection architectures. The fiber cable is directly connected to the terminal node in apartments and office spaces to provide a high-speed connection. FTTB, FTTC, and FTTN type of broadband architectures make use of copper wires as well to deliver the connection. The optic fiber cable is connected to the shared point of the neighborhood, office complex, or housing complex. The rest of the connection delivery to dedicated spaces is done by copper wires.


Growth Catalysts of Fiber Optics Market:

Numerous factors have contributed towards an optimistic business outlook for fiber optics. Globally, there is an increased demand for a high-speed internet connection to get access to a different form of information according to the market databaseMarket research tools state that the advancements in the telecom module have contributed significantly towards the growth of this market. It is also expected to drive the business recovery in the post-COVID scenario. According to the International Telecommunication Union (ITU) in 2018, 51.2% of the global population was using the internet.

Market database states that the emergence and adoption of transformative technologies such as cloud computing, artificial intelligence, IoT, and 5G have propelled the demand in the fiber optics market. As the world has started to get more connected, the need for data centers and network towers has increased, where optic fiber acts as the backbone for transmission. According to the International Energy Agency (IEA) in 2018, the number of IoT connections was reported to be 7.5 billion worldwide. The drivers for the increased application of fiber optics can be studied through Global Market Database. The cloud-based market analysis platform procures free market data across 600+ markets.

According to market research tools, further factors that have contributed towards the growth include the increased use of OTT platforms and HD videos. At home and office complexes, individuals make use of different gadgets to access the internet and require greater bandwidth. The super HD video content is reported to require four times the bandwidth than the standard definition video. Major entertainment provider companies have recommended a speed of 25Mb/s to access the super HD videos.


Engine for 5G:

Market research tools state that the next-generation wireless technology is expected to transform the communication sector. Higher bandwidth, lower latency, and ultra-fast download speeds are a few of the promises that 5G is reported to deliver. According to the market database, such high data speeds and throughputs are heavily dependent on heavy-duty optical fiber networks. To accommodate a billion to trillion devices on the network, a dense network of optical fiber infrastructure needs to be established. The market database suggests that this can affect the wireless as well as the wireline technology.

The mobile network providers make use of small cells which are strategically placed near the user clusters to accommodate a larger section of the population. These small cells or towers are required to be backhauled to the core network to provide the internet connection. This process is known as Mobile Backhauling (MBH). It can be achieved by making use of copper wires, fiber cables, and other types. Greater attention is now captured by the fiber cables as they are reliable, scalable, secure, and cost-efficient.

Market data suggests that the current network towers can sustain the demand for 4G connections. The tactical mapping for a geographic spread can also be obtained through free market research tools like Global Market Database. The cloud-based market research platform also provides customized market research reports according to a client’s requirements. Market analysis across the global market suggests that the 5G has started to roll out, copper backhauled network infrastructures cannot be scaled up to handle the 5G demand. The network architecture is now focused on fiber optics to deliver the capabilities that 5G has to offer.


Fiber Optic Market in APAC Region:

This region has contributed significantly to the fiber optics market. The business recovery is expected to be guided by China and India because of the population density. According to the market database, greater deployments in terms of fiber optic architecture are witnessed in these areas as a greater number of populations are now connected to the internet.

China has also acted as the manufacturing hub for the fiber optics market and provides large-scale network solutions at a low cost. The business outlook for this region is expected to stay buoyant. According to a major market research report, China had 100 million fiber subscribers in the year 2015.

North America & Europe Fiber Optic Market:

Market research reports suggest that both the regions are expected to be fast-growing as greater investments are witnessed to deploy the relevant infrastructure for 5G. Moreover, market research tools indicate that the increased use of internet-dependent devices has contributed to the market growth in both regions. A well-established telecom ecosystem and the need to replace copper backhauled network towers have boosted the use cases of fiber optics.

FTTH council reported 88.1 million high-speed fiber home connections in the year 2018. The number is expected to increase on the back of improved demand for high bandwidth services.