Fiber Optic Components Market: Veins of the Digital World

The fiber optic transmits signals along the wire made up of glass or plastic. The core of an optical fiber is made of pure silicon dioxide (SiO2). The electromagnetic interferences do not impact the transmission of the fiber optics. In terms of the number of modes, optic fiber can be classified into single-mode fiber and multimode fiber. The application of fiber optic is expanding day by day, the future of digital traffic is more distributed with the the subsea cable construction binge in regions across the world. From the developed worlds of the U.S., parts of Europe, and Asia-Pacific the new subsea cable landings emerged from the growing economies of Africa, Latin America, the Middle East, and Southeast Asia. This shift in the center of digital world leadership from developed economies to increase in GDP per capita for expendable income, penetration of the internet, cheaper data, and usage of handheld devices.

The fixed-broadband traffic of Asia Pacific has expanded from 1,703 exabytes in 2020 to 2,074 exabytes in 2021, and 2,182 exabytes in 2022, according to ITU. Fixed broadband remains important for heavy Internet data usage. Since the COVID-19 pandemic heavy traffic rerouted through fixed networks using home Wi-Fi connections, in 2020 (the year of the pandemic), fixed broadband counted for 96.6% of all Internet traffic. In Africa, the fixed-broadband subscriptions per 100 people were 0.60 in 2021 to 0.80 in 2023, which is a significant growth rate.

Figure 1: Fixed-broadband Traffic, Asia Pacific, in Exabytes (Eb), 2020-2022

Source: ITU

The need for different fiber optic components will grow as the application for these will inflate in the world. The major types of components are cables, amplifiers, active optical cables, splitters, connectors, transceivers, and others. Fiber optic pigtails are a connector for one end, and un-terminated fiber on the other end, used to splice with the fiber so to connect to the patch panel or equipment. Joint enclosures are used to provide protection and sealing to the spliced fibers. Networking racks are used to hold and organize various computer networks and hardware devices. Adapters are to join two fiber optic cables together.

Different devices by application can be divided into distributed sensing, communications, analytical and medical equipment, and lighting. The governments of various countries are taking various initiatives to connect various towns, cities, and villages to fiber optics, pushing the demand for different components. In 2023, the Government of India announced all 44 and 43 cities in the State of Maharashtra and Madhya Pradesh are connected with optical fiber cables, showing their steadfast progress.

Additionally, the number of wireline broadband subscribers in India in million 40.06 (Million) in March 2024 from 33.49 (Million) in March 2023. Showing high growth owing to the multiple factors from government support to consumer demand for fast and cheaper data.

The demand from the business is driving the fiber optic components market-

The rise of the e-commerce business and online delivery. The orders for goods or services are placed via a website or app and delivered through the logistics services. The demand for e-commerce is on the rise as it is time-saving, has fewer taxes, easy to compare products and prices, and has more variety. For this growth, social media played an very important role. B2B e-commerce market is estimated to reach at USD$36 trillion by 2026, which was USD$24.5 trillion in 2023. According to a recent industry evaluation, India will rank at the top among 20 countries worldwide in retail e-commerce development between 2023 and 2027, with a compound annual growth rate of 14.1 percent.

Figure 1:     Percentage of Businesses by Size Making E‑commerce Sales, 2022, Large, Medium, and Small

Source: OECD

In OECD countries 27% of all businesses, 25 % of small businesses (10-49 persons employed), 34% of medium businesses, (50-249 persons employed), and 47% of large businesses (250 persons employed or more) have the sale of goods or services conducted through e-commerce in 2022. The reason for this is people look for the best deals online. Through the internet only people look for fashion, electronics, beauty, health & care, furniture, media, food and beverages. Website and apps also gave option for the multiple payment mode options, which is sometimes missing in the offline stores.

The percentage of individual users who have purchased online in the European Union on average is 75%, in France and the UK it is as high as 83% and 92% respectively, and in the USA 76%. As people are spending more time on the internet the amount of data generated would be high and so is the faster broadband connection for the consumer.

Fiber Optic Components Players And Products And Industry Updates:

The upcoming application of the fiber optic would be Fiber to the home (FTTH), which can deliver the internet over large distances. It is structured for the fiber optic running from the central office through FDH. It increases connection speeds with unlimited bandwidth capacity, it enables a much higher bandwidth, and upgrade network performance without replacing the fiber.

Furthermore, in March 2024 NEC and NTT conducted a long-distance transmission experiment over 7,000km using 12-core optical fiber. It is next-generation transmission infrastructure technology for large-capacity optical networks. Collaboration between Corning and SGD Pharma on June 2023 for the opening of new glass tubing facility and expanding access to India. Corning would contribute to the pharmaceutical industry and introducing Velocity Vials would contribute to the high-quality tubular glass packaging.

Further, 3M Twin Axial Cable Assemblies help to keep servers, switches, storage and other high-speed equipment for the speed upto 1.6T. There are 32 products with different varieties of twin axial cable assemblies. Leviton a prominent company offers products such as cassettes, fiber adapter plates, fiber enclosures, fiber panels, fiber pigtails and patch cords, fiber harnesses, cables, and fiber trunks among others

The major players involved in the business of fiber optic components are Lumentum Operations LLC, Coherent Corp. (II-VI Incorporated), Broadcom, Sumitomo Electric Industries, Ltd., TRUMPF, Accelink Technology Co. Ltd, Huihong Technologies Limited, Orbray Co., Ltd., Fujitsu Optical Components Limited, EMCORE Corporation, Corning, CommScope, 3M, Norden, ZTT Group, and Superior Technologies, among the others.

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