Fiber Optic Connectivity Market Segmentation By Component (Hardware, Software and Services); By Industry (Oil & Gas, Mining, Electric Substation and Wind Power) - Global Demand Analysis & Opportunity Outlook 2027
Buy Now Report ID: 1305 | Published Date: Feb 06, 2023
Increasing demand from various industrial sectors
The growing demand for fiber optics from various industrial sectors is expected to drive the overall fiber optic connectivity market during the forecast period. Additionally, the fiber optic technology is used in submarines and aircrafts. This is expected to drive the growth of fiber optic connectivity market during the forecast period. Moreover, the increasing demand from various industrial sectors is also supporting the fiber optic connectivity market over the forecast period.
Widespread Technological Advancement
The increasing technological development coupled with the rising number of data center is increasing the demand for optic connectivity fibers. This is expected to fuel the market growth of the fiber optic connectivity during the forecast period.
Restraints
Technical issues related to connectivity
The increasing technical issues related to fiber optic fiber optic connectivity market is expected to restrain the growth of market during the forecast period.
The market is witnessing vibrant growth on the account of growing demand for energy efficient solutions across the various industries coupled with low cost associated with the data transfer. This is expected to boost the growth of fiber optic connectivity market during the forecast period. The growing technological advancement in the field of communication technology is also major reason for the growth of fiber optic connectivity market.
Fiber optic connectivity market is anticipated to record a CAGR of 11% over the forecast period. The market is witnessing robust growth and it is expected to attain a total market size of USD 14 billion by 2027.The market can be segmented on the basis of component and industry. on the basis of component, it is sub-segmented into hardware, software and services.
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On the basis of services, it is sub-segmented into professional services and testing services. The hardware is expected to be the leading sub-segment during the forecast period. The high application of fiber optic in the hardware component such as connectors, cables and assemblies is expected to be the major factor driving the growth of the sub-segment during the forecast period. For instance according to International Telecommunication Union, the total number of fixed broadband subscriptions in 2017 was 1,005 million which increased to 1,075 million in 2018. The growing number of fixed broadband subscriptions is expected to increase the application of fiber optic cables which in turn is expected to propel the growth of overall market during the forecast period.
On the basis of industry, it is sub-segmented into oil & gas, mining, electric substation and wind power.
Our-in depth analysis of the global fiber optic connectivity market includes the following segments:
By Component
By Industry
By Region
On the basis of regional analysis, global fiber optic connectivity market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Europe is expected to be a leading region for the fiber optic connectivity market during the forecast period. The growth in the fiber optic connectivity market can be attributed to the increasing demand for high data transmission network coupled with high penetration of fiber optic technology in various industries in the region. North America is also expected to witness substantial growth during the forecast period. The growth in the region can be attributed to large number of data center in the region coupled with increasing application fiber optic connectivity in various industries.
Global fiber optic connectivity market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
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