Tuesday, 19 July 2016

Need for High Bandwidth and Transmission of High Data Volumes Makes Fiber Optic Connectors Preferable over Copper Cables

Fiber optic connectors comprise a major part of the global telecommunication market. Optical fibers are connected using fiber optic connectors, which permits the transmission of light between two consecutive optical fibers. Fiber optic connectors are extremely useful when it comes to transferring high-volume data fast and over large areas. A fiber optics network is helpful in this case as it has a greater bandwidth of 10 Gbps and even more.

According to Transparency Market Research, the global fiber optic connectors market is expected to grow at a CAGR of 7.4% in the period of 2015-2021. The valuation of the market is expected to rise to US$4.4 bn over the same period, rising from a 2014 valuation of US$2.7 bn.

What drives the demand for fiber optic connectors in the global market?

As fiber optic connectors are made of very light materials, the conduction of high-volume data and high-speed transfer over greater distances is carried out in a much more convenient fashion than with conventional copper cables. Unlike copper wires, optic fibers do not have a distance limitation, and are shielded. With the recent growth of the telecom industry, the demand for high-bandwidth connections is also increasing, thus making fiber optic connectors a very lucrative market. The use of fiber optic connectors in the medical sector is also increasing due to their compatibility with fiber cables and the high speed they provide, which, in turn, is leading to emerging markets becoming major regional segments of the fiber optic connectors market.

How is wireless networking affecting the fiber optic connectors market’s growth?

In July 2016, the Telephone Regulations Authority of India commenced inspection of the growth of Internet services through Wi-Fi networks. TRAI states that Wi-Fi networks are cheap, versatile and scalable, and thus can help in the spread of the Internet in rural and urban areas equally. This consulting paper was titled “Proliferation of Broadband through Public Wi-Fi network” and was issued by the TRAI on July 13, 2016. The Indian government’s support to wireless connectivity could be a major restraint on the fiber optic connectors market, as the unmet connectivity needs in India represent a significant opportunity for the telecom market in the coming years.

Which is the most dominant regional segment of the global fiber optics market?

The global market for fiber optic connectors is broadly segmented into five geographical segments, namely North America, Latin America, Asia Pacific, Europe, and the Middle East and Africa. According to the type of fiber optics, the market for global fiber optic connectors is divided into straight tips, lucent connectors, multiple fiber push-on/pull-off, standard connectors, and other ferrule and jack connectors. The lucent connectors segment dominated the market in 2014 and is set to rule the market through 2021. 

According to TMR, in terms of revenue generated, the fiber optics connectors market was dominated by North America in 2014. The North America fiber optic connectors market held a share of 38.20% in the global market in 2014. The data centers in this region are driven primarily by the infiltration of high-density multi-fiber connectors, which is expected to fuel the fiber optics connectors market in this region. Asia Pacific stood second with a 30.60% share in 2014. The market for fiber optic connectors in Asia Pacific will primarily be boosted during the forecast period of 2015-2021 due to the advancements in cable technology.

The rising awareness regarding the benefits of fiber optic connectors over copper cables will play a key role in the growth of the fiber optics connectors market in the dominant regions of North America and Asia Pacific. The major companies that occupy a large share in the fiber optics market are Hitachi Ltd (Japan), Sumitomo Electric Industries (Japan), Amphenol Corporation (U.S.), Diamond SA (Switzerland), 3M (U.S.), TE Connectivity Ltd. (Switzerland), Avago Technologies (Singapore), Arris Group Inc. (U.S.), and Furukawa Electric Co. Ltd. (Japan).

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