Fiber Optics Testing Market Analysis by Service Type (Testing, Inspection, and Certification); Fiber Mode (Single Mode, and Multimode); by Offering (In-House Services, and Outsourced Services); and by Application (Telecommunication, Military & Aerospace, Energy & Power, Railway, Oil & Gas, Cable Television, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4853 | Published Date: Apr 28, 2023
Fiber Optics Testing Market size is estimated to reach ~USD 5.07 Billion by the end of 2035 by growing at a CAGR of ~11.80% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of fiber optics testing was ~USD 1.33 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 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.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~11.8% |
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Base Year Market Size (2022) |
~ USD 1.33 Billion |
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Forecast Year Market Size (2035) |
~ USD 5.07 Billion |
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Regional Scope |
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Growth Drivers
Challenges
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 2035. 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.
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 2035. 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 fiber optics testing 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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Fiber optics testing market share in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about ~32% by the end of 2035. 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.
The North American fiber optics testing market is estimated to be the second largest, registering a share of about ~29% by the end of 2035. 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.
Further, the 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 2035. 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 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.
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
Ans: Increasing use of mobile phones, growing digitization, and rising incorporation of 5G services are the major factors driving the market growth.
Ans: The market size of fiber optics testing is anticipated to attain a CAGR of ~11.8% over the forecast period, i.e., 2023 – 2035.
Ans: Lack of skilled worker and risk of hacking are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are TE Connectivity, Corning Incorporated, Molex, Amphenol Corporation, Infinite Electronics International, Inc., Hitachi Information & Telecommunication Engineering, Ltd, Belden Inc., HIROSE ELECTRIC CO., LTD., Fujikura, Ltd, and EXFO Inc.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by service type, fiber mode, offering, application, and by region.
Ans: The multi-mode segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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