Factors Causing Fiber Optic Components Market Growth
The worldwide fiber optic components market is anticipated to grow exponentially over the next five years. According to a MarketsandMarkets report, the market is expected to be worth over $37 billion by 2027. The components industry is currently worth approximately $24 billion. Several factors are expected to contribute to this value increase, including increased demand and the proliferation of internet access. Here is everything you need to know about the future valuation of the fiber optic components market.
What Are Fiber Optic Components?
Fiber optics is the technology that uses light pulses to send data along plastic or glass fibers. This technology is used in many telecommunications applications, including television, internet, and telephone services. An optical fiber is made of three main components: the core, cladding, and coating. The center transmits the light, the cladding contains the light and surrounds the core, and the coating safeguards the delicate fiber fibers housed in the core. These components are often used in conjunction with other mechanisms such as transceivers to perform vital functions.
What Is the Most Frequently Purchased Component?
Transceivers received the majority of the fiber optic components market revenue in 2021. Transceivers were frequently bought to be used in devices such as smartphones, laptops, home security systems, and home gaming systems. The increase in the demand for smart devices is driving the development of more efficient optical transceiver modules. Further, several initiatives such as the 5G network and the integration of artificial intelligence are also driving transceiver sales.
What Sector Accounts For the Most Sales?
The communications sector currently holds the most extensive fiber optic components market share. Applications such as internet and telephone services are expected to lead the component market by 2027. The creation of high-speed network services results in many customers abandoning traditional providers that offer slower, less efficient services. As a result of this increasing demand, the communications sector is expected to continue dominating the components market.
What Region Is Driving Growth?
Compared to other tech-dominant regions such as Asia and Europe, the North American fiber optics market was worth the most in 2021. Factors contributing to the region’s value include a significant presence of major communications companies, high proliferation of devices, and increasing deployment of data centers. North American customers also purchase more fiber optics technology than any other region.
What Factors Are Causing the Growth?
Many factors are driving the growth of the fiber optics component market. These factors include:
- Increasing internet usage
- Rising data traffic
- Expansion of fiber optic technology into emerging economies
- Creation of new technologies and devices
Key companies driving the growth of the components include Lumentum Holdings, Broadcom Inc., and Sumitomo Electric Industries. These companies are focusing on expanding their share of market growth by launching products and collaborating with new companies to increase the efficiency of their services.
Work With a Fiber Optics Expert
Are you interested in using fiber optic components to grow your business? Look no further. V1 Fiber provides specialized construction and engineering services to help with the deployment of fiber optic technology. Contact us today.