According to a new market report published by Transparency Market Research, the global fiber optic connectivity market is expected to reach a value of US$ 4,194.6 Mn 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.

Low total cost of ownership and high return on investment driving the global fiber optic connectivity market

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. 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.

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Fiber Optic Connectivity Market: Scope of the Report

The fiber optic connectivity market is segmented based on component, industry, and geography. According to the research study, 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.

Europe is leading the fiber optic connectivity market with more than 35% share globally. This is mainly due to strong penetration of fiber optic technology across various industries especially wind power, oil & gas, and mining as well as a number of smart city projects across European countries. 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. In terms of opportunities, Asia Pacific and Middle East & Africa (MEA) are expected to witness healthy growth during the forecast period. The China market is undergoing transition from wireless to wired optical communication. The mass adoption of electronic gadgets and creation of high volume of data traffic by a large number of customers further drives the end-users in China to switch to a wired optical medium from a wireless medium. Thus, Asia Pacific region is expected to witness the highest CAGR during the forecast period.