Fiber Optic Cable Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Fiber Optic Cable Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Fiber Optic Cable Market is expected to register a CAGR of 14.5% during the forecast period.? Increasing demand in FTTX and the telecommunications industry and technological advancements are primarily responsible for the increased growth of the market. Key HighlightsFiber optic cables primarily contain strands of glass fibers inside an insulated casing. They are designed for long-distance, high-performance data networking, and telecommunications. Compared to wired cables, fiber optic cables provide higher bandwidth and can transmit data over longer distances. Fiber optic cables support the internet, cable television, and telephone systems.Bandwidth demand is likely to remain strong in the future, driven partly by the need for breakthrough applications such as better quality video, virtual reality, and others. And anticipate that this need will continue to fuel the demand for fiber-based optical spectrum. Fiber standards, such as G.652 and G.657, are critical for network builders in establishing minimum performance criteria, although they may eventually be insufficient to satisfy the needs of future networks.According to TeleGeography's submarine cable map, submarine cables act as the backbone of the internet. About 350 submarine cables span 1.2 million kilometers, connecting 100 countries. According to SubmarineNetworks.com, the world of submarine cables is transforming rapidly, with data compiled by Telegeography indicating USD 8 billion investments lined up in 2019-21.?Optical fibers have also been getting smaller owing to the deployment challenges being raised by various applications. As telecom operators have also been looking for high fiber count cables in reduced diameters, cable manufacturers are investing in R&D to realize smaller cables.COVID-19 has affected the global economy in multiple ways, that includes disruption in production and demand by creating supply chain issues and by its financial impact on firms and financial markets.? One of the significant concentrations of the fiber optics supply chain is in Wuhan, home to Fiberhome, YOFC, and Accelink, among other companies, that comprise a major portion of the global optical fiber production capacity. During the initial phase of the pandemic, the demand was usually weak. However, the production continued at reduced levels.Fiber Optic Cable Market TrendsIT and Telecom Sector is Expected to Witness Significant Growth Optical fiber cable (OFC) is a significant building block in the telecommunication infrastructure. Over the last decade, fiber optics cater to increasing bandwidth demands, especially telecommunication companies, and have become the preferred transmission medium. ? The explosion of data traffic from various sources, such as the internet, e-commerce, computer networks, and multimedia (voice, data, and video), has led to the need for a transmission medium capable of handling higher bandwidth for such vast amounts of information. Fiber optic cables, with comparatively infinite bandwidth, have proven to be the solution.? Optical fiber is a critical component of both mobile and fixed broadband networks. Faster fiber deployment is crucial to massive backhaul amounts of data at high speed, boosting dependability and lower latency. The region's telecommunications businesses are extending their offerings by introducing new spectrum installations. For example, according to Bharti Airtel, the Department of Telecom (DoT) would get Rs 8,312 crore in August 2022 for spectrum bought in the recently completed 5G auctions. Enhanced telecom and Broadband connectivity will boost tourism and employment generation in the Islands, further impen the economy and raise living standards. The new network will deliver faster and more reliable mobile and landline telecom services to the Andaman and Nicobar Islands, at par with other parts of the country. ? Moreover, owing to their security, scalability, and unlimited bandwidth potential to handle the vast amount of backhaul traffic being generated, fiber optic cables are also being chosen to support the bandwidth levels catering to advanced technologies like 5G, Big Data, and IoT that rely heavily on real-time data collection and transfer. The launch of 5G is expected to enhance the capacity and lower latency straight to networks.? Asia Pacific is Expected to Hold Major Market Share In the Asia Pacific, China dominates the regional market and the global fiber optic cable market. The country has a high density of optical fiber networks and is aggressively investing in new optical fiber infrastructure. The adoption of fiber optics cables to transmit signals with a minimum loss has been growing in India. The government is also investing more funds in developing telecommunication services. In the Union Budget 2021-22, the Indian government allocated INR 142 Billion (USD 1.9 billion) for telecom infrastructure, including the completion of an optical fiber cable-based network for Defense services, the rollout of broadband in 2.2 lakh panchayats, and the improvement of mobile services in the North East. ? Moreover, the increasing demand for OFC from the IT & telecom sector, rising number of mobile devices, increasing adoption of FTTH (Fiber to the Home) connectivity, and surging data centers are further anticipated to fuel the fiber optic cables market in India over the coming years.? For instance, Cloud Companies are partnering with telecom operators to create edge data centers. (E.g., Microsoft has tied up with Reliance Jio & Airtel has teamed up with Google Cloud in India.)? Over the past decade, intensive research has been conducted throughout the globe to boost data rates in optical transmission systems employing space-division multiplexing to fulfill the exponentially expanding demand for optical data transfer. Because of their compatibility with traditional cable infrastructure and concerns about the mechanical reliability of bigger fibers, fibers with the same 125 µm cladding diameter as regular single-mode threads have increasingly gained popularity. According to the National Institute of Information and Communications Technology, in June 2021, 319 Tb/s transmissions across 3,001 km using 4-core optical fiber. Less than 120 nm signal bandwidth encompassing 552 WDM channels and employing both-doped fiber and Raman amplification.Fiber Optic Cable Industry Overview The Fiber Optic Cable Market is highly fragmented globally, comprising market incumbents, such as Corning Inc., Leoni AG, Fujikura Ltd, and Hitachi Cable America Inc. (Hitachi Cable), accompanied by several regional firms. Since new players' entry barriers are moderate, regional companies are witnessing value in foraying, especially in the fiber optic cable industry. ? May 2022 - The energy and telecom cable systems business, Prysmian Group, has announced that it would collaborate with Telstra to create a new sophisticated inter-capital fiber network in Australia. The national fiber network project is a multi-year initiative in which Telstra will construct a new "state-of-the-art inter-city dual fiber path" that will add up to 20,000 route kilometers of new fiber optic terrestrial cable, increasing inter-capital capacity as well as capacity for regional regions. Additional Benefits: The market estimate (ME) sheet in Excel format 3 months of analyst support