Fiber Optic Cable Market Growth and Forecast
The Fiber Optic Cable
Market is expected to register a CAGR of over
12.26%, during the forecast period of 2018-2023. With growth in the telecom
industry and favorable government initiatives aimed at developing network
infrastructure across regions, the demand for fiber optics cable is expected to
rise, over the forecast period. According to GSMA, China and India are poised
to account for approximately half of all the new mobile subscriber additions by
the end of 2020, with the emergence of 5G. Government across Asia-Pacific
countries, like China and India, are investing significantly in the upcoming 5G
technology, which relies heavily on fiber optic cables. The UK government, in
its `Future Telecoms Infrastructure Review (FTIR)` announced its plans for an
`industry-led switchover` from copper to full fiber. Therefore, favorable
investments in 5G wireless technology are expected to drive the growth of the
fiber optic cable market, over the forecast period. The developing data center
market also drives the growth of the fiber optic cable market. In the recent
years, as optics has been a base on which medical equipment are being built,
the demand for fiber optic cable exists across the healthcare industry.
Growth of Data Centers Expected To Drive the Market
By offering benefits in terms of cost
savings and high-speed data transmission benefits, compared to copper cables,
the usage of fiber optic cables is becoming evident across data centers. The
increasing consumption of social networking sites, videos, and other consumer
apps, signifies the considerable demand for data. The forecasts regarding the
number of connected devices by Cisco also provides insights on the potential
data demand. Owing to the data demands across consumers and enterprises, the
average number of data centers is estimated to be 10.3 per organization, in
three years from 2017, up from 8.1 per organization, according to the Data
Center World Global Conference. The rising data center growth considering the
connected devices and data storage, the need for high-speed data transfer
augments the adoption of the fiber optic cables.
Asia-Pacific Expected to Grow At a Substantial Rate
With increasing activity in data centers,
due to the potential growth of the end-user industries and enterprises slowly
shifting toward SaaS applications, the use of fiber optic cables is expected to
increase in the region, over the forecast period. The forecasted data center
loads and cloud computing instances provided by Cisco, in its Global Cloud
Index, indicate the scope for the adoption of fiber optics, across data centers
in the region. Also, the consistent rise in the use of smartphones and internet
facilities in the region contributes to the adoption of optical fiber cables,
for telecommunication applications. 5G connections (excluding IoT) are
anticipated to reach USD 670 million in Asia-Pacific, by 2025, accounting for
approximately around 60% of the global 5G connections, according to GSMA.
Investments in 5G mobile technologies in Asian markets, such as China, Japan,
and South Korea, are driving the development of 5G mobile technologies, which
are expected to pave the way for new opportunities, in the fiber optic cable
market.
2019 03/26