COVID-19 Creates Uncertainty in Resources and Capital for Construction of Optic Networks

The global fiber optic cable market is predicted to undergo a recession period, due to the coronavirus (COVID-19) outbreak. Increased number of morbidity and mortality rates have caused a slowdown in revenue generation activities and affected the construction of fiber optic cable networks. Due to the high prevalence of COVID-19 cases in Western Europe, the construction of Fiber to the home (FTTH) networks has been temporarily halted. On the other hand, companies in the U.S. fiber optic cable market are gaining momentum for the construction of 5G network across cities. Thus, the extent of economic slowdown and the demand for optical products is varying as per different countries.

Uncertain ramifications of coronavirus are anticipated to cause a global recession with the issue of short-term unavailability of resources and capital for the construction of optic networks.

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Demand for High-speed Connectivity Emerges as Key Driving Force for Market Growth

The need to stay connected via the Internet has become crucial for individuals as well as international companies. Hence, companies in the fiber optic cable market are focusing on the deployment of cloud based storage solutions. As such, there is a growing need for sending and retrieving data at high speeds, high quality, and consistency. This has triggered the growth of the fiber optic cable market.

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On the other hand, countries in Asia Pacific such as Singapore, South Korea, and Japan are at the forefront to provide high-speed connectivity. This explains why the revenue growth of Asia Pacific is anticipated to progress at an aggressive speed. Moreover, companies in the market for fiber optic cables are expanding their business in European countries including Latvia and Czech Republic due to high demands for faster Internet speed. Companies in the market for fiber optic cables are increasing their focus in developing economies, since governments are increasing efforts to fund projects of fiber optic networks in the transportation infrastructure.

Transportation of Large Digital Content through FEC Fuels Demand for Fiber Optic Cables

Advancements in technology are being observed in the fiber optic cable market in order to support the transport of huge volumes of digital content. The increasing use of direct detection techniques between transmitters and receivers is another key driver that is fueling market growth. As such, the fiber optic cable market is estimated to cross ~US$ 15 Bn by the end of 2030. Thus, coherent detection techniques such as forward error correction (FEC) are some of the game changers that are deploying high-speed data transfers.

The Google Fiber project is catching the attention of the U.S. companies in the market for fiber optic cables, where the project focuses on revamping the cities’ Internet network. The U.S. companies in the market for fiber optic cables are focusing on building state-of-the-art networks that are capable of transferring large gigabits of data within seconds.

High Capacity Base Transceiver Stations Hold Potentials to Solve Network Outage Issues

The fiber optic cable market is estimated to register a striking volume CAGR during the forecast period. Moreover, the telecommunication industry in developing countries such as Ghana is undergoing a significant change, which has triggered the demand for robust fiber optic cable networks. As such, the IT & telecommunication industry dictates the highest revenue among all industries in the market landscape. However, frequent network outages are some of the biggest challenges that operators need to address. Hence, establishing state-of-the-art optical plants, correct system configurations, and high capacity base transceiver stations are among few solutions that can solve the issue of network outages.

Companies in the fiber optic cable market are adhering to government regulations to bolster their credibility in the market. For instance, mobile network operators (MNOs) in Ghana opine that the National Communication Authority and Ghana Telecommunication Chambers should collaborate with the MNOs to build uninterrupted fiber optic networks.

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Analysts’ Viewpoint

Although there will be uncertainties in the availability of capital and resources for the construction of optical networks, bandwidth requirements will continue to increase during and post the COVID-19 lockdown period. As such, companies in the global fiber optic cable market are taking efforts to increase the number of cores within fibers in order to meet surging bandwidth demands.

The deployment of large-scale fiber optic projects in the U.S. is generating incremental opportunities for manufacturers. However, the issue of fiber cable cuts and managerial and regulatory challenges is anticipated to impede market growth. Hence, companies should collaborate with the regulatory authorities to streamline policy documents that govern fiber management and deployment.

Fiber Optic Cable Market: Overview

  • According to Transparency Market Research’s latest research report on the global fiber optic cable market for the historical period of 2018–2019 and the forecast period of 2020–2030, the development of new technologies in the telecom industry is expected to boost the global market during the forecast period. Developments in the telecom industry, including introduction of 4G LTE, 5G, and FTTH, have changed the manner in which services are delivered in the fiber optic cable market.
  • In terms of revenue, the global fiber optic cable market is estimated to reach the value of ~US$ 15 Bn by 2030, expanding at a CAGR of ~7% during the forecast period

Rising Demand for High-speed Connectivity: A Key Driver

  • The global fiber optic cable market has witnessed significant growth over the last few years, due to the rising demand for high-speed connectivity, with the IT & telecommunication end-use industry segment holding a major market share. Industries such as energy & power, healthcare, and aerospace & defense are the leading verticals, in terms of adoption of the fiber optic technology.
  • Fiber optic cables have been witnessing high demand for a long time. While single-mode fibers had already witnessed high adoption among end-use industries and consumers, multi-mode fibers gained momentum recently. The deployment of multi-mode fibers in large-scale data centers and cloud services would continue to be high during the forecast period.
  • Applications in telecom and defense & aerospace industries, which require fiber optic cables, are anticipated to witness rise in demand during the second half of the forecast period. Improvements in the network technology in recent years have led to high-speed Internet connectivity and access to all applications requiring high-speed data such as videoconferencing, audio and video streaming, and cloud storage.
  • Fiber optic cable is the transmission method of choice when designing and implementing a reliable real-time video conferencing system without compromising on the quality of videos, audios, and data

Rising Demand and Technological Advancements in Telecom Industry: the Latest Market Trend

  • The global fiber optic cable market is currently being driven by the global paradigm shift toward information-centric communication. Key enablers of the fiber optic cable deployment include continuously increasing demand for data services; propagation of the next-generation broadband know-how, which includes FTTx, LTE, and HSPA; and availability of low-cost tablet PCs and smartphones.
  • Fiber optic cable systems are evolving from the point-to-point application to a more complicated architecture. Currently, point-to-point unrepeated and repeated links primarily use two fibers, one in each direction. Availability of low-loss, low-cost couplers or development of transmission/receiving devices makes it possible to transform point–to-point links into a single fiber.
  • Multiplexing of various electric signals and transmitting them over a pair of fibers is the next stage of development. Numerous manufacturers have introduced fiber optics multiplex equipment as a substitute for the existing parallel coaxial cable links.
  • As for installation in operational applications, use of wavelength division multiplexing (WDM) is currently being considered as an option. The military is also using WDM in several of its system applications.
  • As a result of these advantages, the demand for fiber optic cables in various end-use industries is increasing. This is expected to boost the global fiber optic cable market during the forecast period.

Lack of Industry Standards Hampering Demand for Fiber Optic Systems: a Major Challenge for Global Market

  • Availability of limited industry standards has delayed the development of specific optical fiber cables for use in component-intensive local areas and subscriber networks and also, in the industrial environment. Firms are unwilling to allocate sizeable portion of their capital budget to a system, which may be incompatible with the associated system, or outdated.

Fiber Optic Cable Market: Competition Landscape

  • Detailed profiles of providers of fiber optic cables have been provided in the report to evaluate their financials, key product offerings, recent developments, and strategies
  • Key players operating in the global fiber optic cable market are 
    • Corning Inc.
    • Prysmian Group
    • HTGD
    • Furukawa Electric Co., Ltd.
    • Yangtze Optical Fiber and Cable (YOFC)
    • Sumitomo Electric Lightwave Corp.
    • Tongding Interconnection Information Co. Ltd
    • CommScope
    • Sterlite Tech

Fiber Optic Cable Market: Key Developments

  • Key providers of fiber optic cables, such as Furukawa Electric Co., Ltd. and CommScope Holding Co. Inc., are focusing on the development of innovative and reliable fiber optic cables. Some other key developments in the global fiber optic cable market are as follows:
    • In January 2018, CommScope Holding Co. Inc. announced to have formed a strategic agreement with OFS Fitel, LLC, a major subsidiary of Furukawa Company and a leading provider of fiber optic materials. Through this strategic agreement, the former would be receiving supply of optic fiber cables for use in the development of new fiber optic cable products.
    • In September 2017, Furukawa Electric Co., Ltd. announced its plans to increase its optical fiber manufacturing capacity by roughly two times by the end of 2019. This expansion cost was estimated at US$ 150 Mn approximately.
  • In the report on the global fiber optic cable market, we have discussed individual strategies, followed by company profiles of providers of fiber optic cables. The ‘Competition Landscape’ section has been included in the report to provide readers with a dashboard view and company market share analysis of key players operating in the global fiber optic cable market.

Fiber Optic Cable Market – Scope of the Report

A new study on the global fiber optic cable market is published by Transparency Market Research (TMR). It presents detailed information on key market dynamics, including drivers, trends, and challenges for the global fiber optic cable market as well as its structure. TMR’s study offers valuable information on the global fiber optic cable market in order to illustrate how the market is expected to expand during the forecast period i.e. 2020–2030.

Key indicators of market growth, which include value chain analysis and compounded annual growth rate (CAGR), are elucidated in TMR’s study in a comprehensive manner. This data can help readers interpret the quantitative growth aspects of the global fiber optic cable market.

An extensive analysis of business strategies adopted by leading market players is also featured in TMR’s study on the global fiber optic cable market. This can help readers understand key factors responsible for growth of the global fiber optic cable market. In this study, readers can also find specific data on avenues for qualitative and quantitative growth of the global fiber optic cable market. This data would guide market players in making apt decisions in the near future.

Key Questions Answered in TMR’s Study of Fiber Optic Cable Market

  • What would be the Y-o-Y growth trend of the global fiber optic cable market between 2020 and 2030?
  • What is the influence of the changing trend in fiber types on the global fiber optic cable market?
  • Would Europe continue to be the most dominant regional market for providers of fiber optic cables in the next few years?
  • Which factors would hinder the global fiber optic cable market during the forecast period?
  • Which are the leading companies operating in the global fiber optic cable market?

Research Methodology

A unique research methodology is utilized by TMR to conduct comprehensive research on the global fiber optic cable market and arrive at conclusions on future growth prospects for the market. This research methodology is a combination of primary and secondary research, which helps analysts warrant the accuracy and reliability of the conclusions drawn.

Secondary research sources referred to by analysts during production of the report on the global fiber optic cable market include statistics from company annual reports, SEC filings, company websites, World Bank database, investor presentations, regulatory databases, government publications, and market white papers. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, and market intelligence managers, who have contributed to production of TMR’s study on the global fiber optic cable market as a primary research source.

These primary and secondary sources provided exclusive information during interviews, which served as a validation from leading players operating in the global fiber optic cable market. Access to an extensive internal repository as well as external proprietary databases allowed this report to address specific details and questions about the global fiber optic cable market with accuracy. The study also uses a top-down approach to assess the numbers for each segment and a bottom-up approach to counter-validate them. This has helped in making TMR’s estimates on future prospects for the global fiber optic cable market more reliable and accurate.

Fiber Optic Cable Market – Segmentation

TMR’s study of the global fiber optic cable market segments the market based on fiber type, cable design, deployment, end-use industry, and region. Changing market trends and other crucial market dynamics associated with segments of the global fiber optic cable market have been discussed in detail in TMR’s study.

Fiber Type

Single-mode Fiber

Multi-mode Fiber

Others

Cable Design

Ribbon Tube

Loose Tube

Tight Buffered

Central Core

Others

Deployment

Underground

Underwater

Aerial

Others

End-use Industry

IT & Telecommunication

Energy & Power

Healthcare

Aerospace & Defense

Others

Region

North America

Europe

Asia Pacific

Middle East & Africa

South America

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Fiber Optic Cable Market

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