Fiber Optic Components Market is expected to grow from USD 24.5 billion in 2022 to USD 37.5 billion by 2027; it is expected to grow at a CAGR of 8.9% during 2022–2027. Key factors fueling this markets growth include increasing deployment of data centers; growing internet penetration and data traffic; and rising demand for bandwidth. Increase in adoption of fiber optic components in digital signage market; rise in demand for fiber optics due to reliability; and expansion of telecommunication infrastructure in developing economies create a strong demand for fiber optic components for efficient operations in the midst of COVID-19.
Some of the prominent key players are: II-VI Incorporated (US), Lumentum Holdings Inc. (US), Broadcom Inc. (US), Sumitomo Electric Industries (Japan), Accelink Technologies (China), Oclaro (US), Acacia Communications, Inc. (US), EMCORE Corporation (US), Fujitsu Optical Components (Japan), Furukawa Electric (Japan)
Many of these companies focus on adopting both organic and inorganic growth strategies, such as product launches and developments, expansions, acquisitions, alliances, and collaborations to strengthen their position in the market.
Market for transceivers to hold the largest share in 2021
The market for transceivers accounted for the largest size in 2021. The increasing adoption of smart devices (such as smartphones, laptops, home assistants, IoT-based home security systems, and gaming consoles) and the rising data traffic are the key drivers for developing and using high-speed, coherent optical transceiver modules. Furthermore, various governments are taking initiatives to develop modular optical transceivers. Moreover, the introduction of 5G network and integration of artificial intelligence (AI) and Internet of Things (IoT) transformed the optical transceiver market significantly.
Market for communications to hold the largest share in 2021
The market for communications is estimated to account for the largest share fiber optic components market, in 2021. The communications application is expected to lead the fiber optic components market by 2027. The deployment of high-speed communication networks and shift toward high-date rate and bandwidth-intensive networks such as 4G, LTE, and 5G create a requirement for optical communication and networking equipment to handle the growing burden of the telecom networks.
Market in North America to hold the largest share
In terms of value, North America led the fiber optic components market in 2021, accounting for the largest share of the overall fiber optic components market, by region. Factors such as the robust presence of major companies in the region; high demand for data communication; increased use of communication devices, such as smartphones, tablets, and VoIP equipment; as well as the growing market for wearable devices and increasing deployment of data centers drive the growth of the fiber optic components market in this region.