Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Fiber Optics Testing Market size was over USD 1.66 billion in 2024 and is projected to reach USD 7 billion by 2037, witnessing around 11.7% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of fiber optics testing is assessed at USD 1.99 billion.
The growth of the market can be attributed to the increasing demand for high-speed internet connectivity. The speed of fiber optic internet is approximately 20 times quicker than conventional cable internet and 80 times faster than DSL (digital subscriber line). According to Eurostat, in 2021, 70% of EU homes are going to have access to high-speed internet, up from 16% in 2013. Moreover, the European Commission set a 2030 aim of gigabit connection in all EU households and 5G coverage in all populated areas in 2021.
In addition to these, factors that are believed to fuel the fiber optics testing market growth of fiber optics testing include the rise in the growing adoption of smartphones. People are consuming more data than ever; the videos are also made in very refined quality. Owing to all these factors, the need for high-speed data and smooth transmission of data is also increasing, for that purpose, fiber optics are used, as they are capable of giving high data transmission at a very high speed. On the other hand, fiber optics testing has become imperative to detect the various issues that interfere with the bandwidth and impact the network performance and downtimes. Regular testing is also important for meeting the safety standards and regulatory compliance.
Fiber Optics Testing Sector: Growth Drivers and Challenges
Growth Drivers
- Growing Adoption of 5G Services– 5G uses radio waves to send and receive data, whereas fiber optic communication uses light to send and receive data via fiber optic cables. 5G subscriptions are predicted to be highest in North East Asia, South East Asia, India, Nepal, and Bhutan. Moreover, 5G subscribers are expected to skyrocket globally between 2019 and 2027, rising from over 12 million to more than 4 billion.
- Rising Demand for High-Quality Videos – Fiber optic communication is becoming increasingly crucial for transmitting high-quality live video, simplifying your critical surveillance applications. The penetration rate of OTT platforms is likely to be around 48% in 2023, and it is expected to rise to nearly 53% by 2027. Moreover, globally the number of users of the OTT platform is anticipated to reach around 4 billion users by 2027.
- Increasing Adoption of Mobile Phones–Mobiles phones have increased the demand for faster and secure networks. The number of mobile subscribers globally was around 7 billion in 2021, with estimates indicating that this figure will climb to more than 7 billion by 2022. The global mobile user base is expected to reach approximately 8 billion by 2025.
- Growing Demand for Cloud Services – Cloud computing is also a challenging technical concept in terms of data storage space, transmission speed, and adaptability. Fiber optic equipment is now used to do this. Approximately 70% of global cloud users intend to expand their cloud budgets in the future. Furthermore, by 2022, nearly 57% of organizations will have migrated their workloads to the cloud.
- Rising Prevalence of Digitization–With the growing digitization the data generation on the internet is increasing to pace up this process fiber optics are used as they aid the transmission of images, voice messages, and movies at a very high speed. Around 89% of all organizations in the world have already implemented or plan to implement a digital-first business strategy.
Challenges
- Lack of Skilled Workers – There is a lack of skilled workers in the industry that have the necessary expertise to install the fiber optics and do its maintenance. The shortage of workers is likely to bring challenges for the providers to scale their operations.
- There are a range of regulations that are hard to adhere
- Vulnerability to hacking and other security concerns
Fiber Optics Testing Market: Key Insights
| Report Attribute | Details |
|---|---|
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
11.7% |
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Base Year Market Size (2024) |
USD 1.66 billion |
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Forecast Year Market Size (2037) |
USD 7 billion |
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Regional Scope |
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Fiber Optics Testing Segmentation
Application (Telecommunication, Military & Aerospace, Energy & Power, Railway, Oil & Gas, Cable Television)
The global fiber optics testing market is segmented and analyzed for demand and supply by application into telecommunication, military & aerospace, energy & power, railway, oil & gas, cable television, and others. Out of the seven applications of fiber optics testing, the energy & power segment is estimated to gain the largest market share of about ~30% in the year 2037. The growth of the segment can be attributed to the rising demand for energy in the world. In 2050, the non-OECD portion of global energy demand will reach around 70%. Global energy consumption is continuing to move progressively towards emerging economies with greater population and economic growth than the global average. Moreover, developing countries account for more than 100% of the increase in global energy demand. In addition to this, between 2005 and 2030, energy demand is expected to increase by 55%, from around 11 billion tons of oil equivalent to nearly 18 billion. Furthermore, global energy consumption is anticipated to climb by 50% between 2005 and 2030.
Fiber Mode (Single Mode, Multimode)
The global fiber optics testing market is also segmented and analyzed for demand and supply by fiber mode into single mode, and multimode. Amongst these two segments, the multimode segment is expected to garner a significant share of ~60% in the year 2037. The growth of the segment is primarily attributed to the rising demand for high bandwidth. Multi-mode fiber optics are most suitable and provide more support to higher bandwidths than single-mode fiber optics. They are best suited for various applications, including high-performance computing, the transmission of multimedia, and data centers. On the other hand, multi-modal is less expensive than single-modal fiber optics as it can be easily integrated with the existing infrastructure of fiber optics. Therefore, the cost is significantly reduced and is more accessible for organizations with a limited budget.
Our in-depth analysis of the global market includes the following segments:
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By Service Type |
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By Fiber Mode |
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By Offering |
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By Application |
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Vishnu Nair
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Fiber Optics Testing Industry - Regional Synopsis
APAC Market Statistics
Asia Pacific industry is estimated to dominate majority revenue share of 32% by 2037. The growth of the market can be attributed majorly to the rising use of 5G services. Prime Minister Narendra Modi introduced 5G services in India for the first time on October 1, 2022. At the moment, only Bharti Airtel and Reliance Jio provide 5G network services in the country. In addition, Jio launched 5G services in Gwalior, Jabalpur, Ludhiana, and Siliguri, bringing the total number of Jio True 5G cities to 72. On the other hand, the rising viewership on OTT platforms and high video streaming is also expected to boost the market growth in the region. In 2020, there were around 29 million paying Indian users, with nearly 53 million video subscriptions. Moreover, Hotstar, Netflix, Amazon Prime Video, and Youtube are the major contributors.
North American Market Forecast
The North American fiber optics testing market is estimated to be the second largest, registering a share of about ~29% by the end of 2037. The growth of the market can be attributed majorly to the increased investment in broadband infrastructure, followed by rising demand for digital connectivity and high-speed internet. Moreover, many companies are upgrading their existing network to fiber optic infrastructure to keep up with the high demand for faster data transmission and higher bandwidth. Moreover, the government is also taking initiatives to promote digital connectivity and expand access to broadband. On the other hand, a rise in the number of data centers is also expected to boost the market growth. North America is a hub of some of the largest data centers, and fiber optics are helping in faster data transmission.
Europe Market Forecast
Further, the fiber optics testing market in the Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2037. The growth of the market can be attributed majorly to the rising adoption of fiber optics networks. Many organizations are using fiber optics for their operations, therefore the need for regular testing becomes imperative for proper maintenance and functionality of the operation. In addition to this, the rising widespread of the telecommunication industry is also expected to drive fiber optics testing market growth in the region. With the growing use of IoT-connected devices, mobile phones have increased the demand for fiber optics for better network performance and reliability.
Companies Dominating the Fiber Optics Testing Landscape
- TE Connectivity
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Corning Incorporated
- Molex
- Amphenol Corporation
- Infinite Electronics International, Inc.
- Hitachi Information & Telecommunication Engineering, Ltd
- Belden Inc.
- HIROSE ELECTRIC CO., LTD.
- Fujikura, Ltd.
- EXFO Inc.
Recent Developments
- Fujikura Ltd. Announced the opening new fiber optic cable facility in Swindon, Wiltshire, by AFL, a subsidiary of Fujikura Ltd, Japan. It is established to start the commercial production of FFujikura's Air Blown Wrapping Tube Cable (AB-WTC) in the United Kingdom using Spider Web Ribbon® (SWR®) fiber technology.
- EXFO announces to expand its range of electrical and optical test solutions by incorporating technology acquired from InOpticals Inc. into its test & measurement portfolio. It provides extensive, flexible test solutions.
Author Credits: Abhishek Verma
- Report ID: 4853
- Published Date: Dec 20, 2024
- Report Format: PDF, PPT
