The global lit fiber market was valued at USD 4.20 billion in 2021 and is expected to reach USD 14.31 billion in 2030 expanding at a compound annual growth rate (CAGR) of 16.56% from 2022 to 2030. A fiber optic is a flexible and transparent fiber that may operate as a waveguide, often known as a "light pipe," to transfer light between the two ends of the fiber. This type of fiber is constructed of extruded glass (silica) or plastic. By use of a mechanism known as total internal reflection, this device is a cylinder-shaped dielectric waveguide that allows light to travel down its axis. The light is guided through fiber optics by total internal reflection, which occurs because the core of the fiber optic is transparent and is encased in a cladding material that is also transparent but has a lower index of refraction. Because of this phenomenon, the fiber behaves in the same way as a waveguide.
The most important driver that is driving the industry is the ever-increasing demand for internet services. The steadily increasing number of people who are able to use digital technologies has resulted in an increase in the need for high bandwidth communication and data transfer services. This, in turn, has contributed to the expansion of the telecommunications and information technology industries. As a direct result of this, there has been a growth in demand for fiber optics, which is essential for the efficient transmission of data, voice messages, and pictures over extremely long distances. In addition, technologies such as the 5G network, fiber to the home (FTTH), and fiber to the building (FTTB) have intensified the placement of broadband network systems. These systems give users high-speed data and related services.
In addition, because the fibers that makeup fiber optic internet are composed of glass rather than plastic and do not require electricity to work, this type of internet is said to be more dependable and less likely to fail during power outages. This technology finds wide application in the realm of imaging within the healthcare business. X-rays, surgical endoscopy and microscopy, ophthalmic lasers, and light treatment are some of the most important medical procedures that make use of fiber optics. Another important aspect that is boosting the demand for these products in this sector is the rising popularity of minimally invasive surgical procedures.
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Rise in Internet Usage to Boost Market Progress
The internet is a worldwide network of interconnected devices. Fiber optics serve as the internet's backbone, with optical fiber cables serving as the medium for transporting data from one location to another. In 2018, 51.2 percent of the world's population used the internet, according to the International Telecommunication Union (ITU). In 2018, the number of internet users increased by roughly 45 percent. The internet is being driven by the expanding significance of cloud computing, data transport and storage, and IoT.
The number of net users is predicted to rise from 3.6 billion in 2018 to 5.0 billion by 2025, according to the International Energy Agency. Furthermore, by 2025, the number of IoT connections is estimated to have risen from 7.5 billion in 2018 to over 25.0 billion.
The Internet of Things (IoT) is the internet integration of everyday gadgets (mostly machine-to-machine). As the number of linked devices grows, there will be a larger demand for increased bandwidth, resulting in the expansion of IoT. IoT development will also be aided by data center colocation services that employ fiber optics to move data. Other factors driving internet demand include an increase in the number of connected devices in households, an increase in demand for OTT video content, and an increase in internet access. All of these reasons have increased the number of internet users, which has resulted in a growth in the use of optical fiber cables to carry data over the Internet, which is propelling the fiber optics industry.
Because of the rising demand for mobile data and the debut of 5G services, telecom service providers are already buying up the existing lit fiber and are also focused on developing their own. This is in response to the fact that 5G services will soon be accessible. The ever-increasing bandwidth requirement of portable device user audience and the mandated conversion to HD video quality for cable providers are two other reasons that are likely to fuel the expansion of the dark fiber network market throughout the projected period.
The Demand for FTTx is Growing to Support Market Growth
In the context of broadband network architecture, the term "fiber-to-the-premises" refers to any design that implements the use of fiber optics as the optical medium for data transmission in a local loop intended for use in last-mile communications. The terms FTTH, FTTP, FTTB, FTTN, and FTTC are all included under the FTTx umbrella. Because of its capacity to provide more bandwidth at increased speeds, fiber has developed into a vital component for the development of modern networks. The number of apps that facilitate communication is continually expanding, and each of these applications has characteristics that call for greater bandwidth and better speed. Some of these cutting-edge uses include over-the-top (OTT) content, video technology, and the Internet of Things (IoT). As the use of these applications continues to rise, there will be greater demand for more network topologies such as FTTH and FTTB.
The bandwidth used by video technology is the greatest of any other type. The newly developed video format known as super high definition (HD) needs a bandwidth that is four times more than that of a normal definition video. Speeds of at least 25 Mb per second are required to see the video in ultra-high definition (super HD) on streaming services like those offered by firms in the United States such as Netflix and Amazon Prime. Fiber-to-the-home (FTTH) and fiber-to-the-business (FTTB) network architectures are required to provide internet access in order to meet the high bandwidth demands of video technology. This, in turn, will drive the fiber optic market, as fiber optics serve as the backbone for such network architectures. Growth potential exists for fiber optic players thanks to all of the recent technological breakthroughs that have improved video quality and streaming services.
Over-the-top (OTT) refers to the distribution of audio, video, and other forms of media material over the Internet. Users of OTT do not need to subscribe to traditional cable or satellite pay-TV services in order to access the content. Over-the-top (OTT) is exhibiting growth tendencies that are comparable to those of video technology. SlingTV and Hulu in the United States are two of the most prominent over-the-top (OTT) entertainment providers (US).
The Internet of Things (IoT) refers to the process of connecting computing equipment, such as printers and video projectors, to the internet in order to provide those devices with the ability to transmit and receive data. It is made up of interconnected devices that contain sensors, and it is controlled, directed, and gathers data with the help of intelligent programs running on each device. Door locks, thermostats, wall electrical outlets, light switches and bulbs, intercoms, security cameras, and integrated control systems are all examples of things that may be connected to the Internet of Things. Because these fibers serve as the optical channel for the flow of information in applications that require the Internet, the market for fiber optics will be driven forward by the demand for high-speed Internet services.
The next generation of applications that require high bandwidth will, along with the proliferation of connected devices, necessitate the need for faster and higher bandwidth networks. Examples of such networks include fiber-to-the-home (FTTH), fiber-to-the-node (FTTN), and fiber-to-the-curb (FTTC), all of which use optical fiber cable to transfer data. This expansion in the FTTx industry will, in turn, fuel growth in the market for fiber optics.
If bent beyond a certain degree, fiber optic cables are susceptible to damage, and they also run the risk of breaking. Because it requires the utilization of pricey splicing devices in addition to the expertise of trained professionals, the installation of fiber optic cable is an expensive endeavor. The expansion of the market would be hampered by these variables to some degree during the course of the upcoming time period.
The lit fiber market is segmented into the following: Product, Connectivity, Application and Region.
Based on Product the market is divided into Single Mode and Multi-Mode. In terms of revenue, the multi-mode category led the market in 2021, accounting for almost 62 percent of the entire market share. Over the projection period, it is also predicted to continue to lead the market. This method of transmission is ideal for short distances. It's mostly utilized in video surveillance and LAN (Local Area Network) networks. Single-mode fiber, on the other hand, is better for long-distance transmission. It is mostly employed in multi-channel television broadcasting systems and long-distance telephone communication. Over the forecasted period, the single-mode category is expected to develop significantly. Long-distance deployments ranging from 2 meters to 10,000 meters are covered by this product class. In comparison to multi-mode, it has a smaller power loss. It is, nevertheless, more expensive than multimode fibers.
Based on Connectivity the market is classified into On-net and Off-net.
The market is segmented into On-net and Off-net based on connectivity.
Based on Application the market is divided into Networking, Industrial, Aerospace & Défense.
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During the projection period, the APAC fiber optics market is expected to be the biggest. The region's industrialization and infrastructure development have opened up a plethora of prospects for the usage of fiber optics in a variety of applications. China, Japan, India, Australia, and South Korea are the largest fiber optics markets in APAC. China is the world's largest industrial hub and one of the most populous countries in terms of internet usage.
Furthermore, China is the world's most populated country, resulting in an increase in applications such as communication, residential, utilities, CATV, and industrial. Because of the expanding industrial operations in the area, nations such as India and South Korea are seeing considerable growth rates.