Global Development Status
——The global optical cable market is worth $9.24 billion in 2020
The global fiber optic market revenue has increased significantly owing to the increase in internet usage across the globe. Moreover, the transmission of digital data over fiber optic has become faster than copper cable due to its better reliability, speed, reliability, and transmission capabilities, leading to an increase in usage in the telecommunications sector. According to PR Newswire data, in 2020, the global fiber optic market is worth $4.54 billion.
Growing demand from FTTx and telecommunication industries along with technological advancements are the major reasons for the growth of the optical cable market. According to Mordor Intelligence data, in 2020, the global optical cable market is worth $9.24 billion.
——The Asia-Pacific region is the main market for fiber optic and optical cable
According to Markets and Markets, in 2020, the largest regions in the global optical cable market will be Asia Pacific, North America and Europe, accounting for 53%, 19% and 14% respectively. Among them, the major fiber optic markets in the Asia-Pacific region are China, Japan, India, Australia, and South Korea, and the growing industrialization and infrastructure development in the region provides huge opportunities for the use of fiber optic in various applications in the Asia-Pacific region. The North American region also accounts for a larger share of the global optical cable market due to the presence of key players such as Corning, Prysmian Group, AFL Telecom, Fitel, and LS Cables & Systems. Meanwhile, rising telecom initiatives in the Middle East and Africa will drive the fiber optic cable market.
——Industry development history: the fiber optic industry is in a stage of rapid development
Since China developed the first short-wavelength, step-type fiber optic with self-made equipment in 1977, the development of China's fiber optic and optical cable industry has officially begun. With the deployment of China's telecom network after the 1990s, the demand for fiber optic and optical cable has expanded significantly. In order to get rid of the market control of foreign enterprises' fiber optic and optical cable products, the road of self-development of China's optical cable technology has also begun. So far, the development of China's fiber optic and optical cable industry has gone through four stages: the initial stage, the spreading stage, the high-speed development stage, and the FTTH stage.
——The length of the optical cable is constantly increasing
With the increase of social demand, the scale of fiber optic cable network continues to expand. From 2014 to 2021, the length of China's fiber optic cable will continue to increase, from 20.46 million kilometers in 2014 to 54.88 million kilometers in 2021, an increase of more than 1.6 times. In 2021, the length of new fiber optic cable lines in China will be 3.19 million kilometers, and the total number of mobile communication base stations across the country will reach 9.96 million, a net increase of 650,000 throughout the year.
——The optical cable development pain points
Although the future demand for fiber optic and optical cable is still high, the market competition is fierce, policies and technologies are facing uncertainties, and there are certain risks in the development process. At the same time, fiber optic and optical cable products have a limited service life and are difficult to maintain, which is an unavoidable pain point in the development of the industry. In addition, there are also challenges for enterprises in the industry in terms of supply and demand and selling price.
The Optical Cable Industry Development Prospect Forecast
——Optical Cable Global Market
Driven by increasing demand for Internet of Things (IoT) and cloud services and higher utilization of fiber-based internet connections, businesses are transitioning from traditional wired internet lines to fiber optic connections, which is expected to drive the revenue growth of the market in the near future. According to PR Newswire, the global fiber optic market will be valued at US$5.46 billion in 2022, and will rise to US$8.69 billion by 2027.
Rapidly growing demand for high-quality video, audio, and data transmission, growing use of 5G technology, growing demand for Internet, and rising demand for FTTx are the positive growth drivers driving the growth of the fiber optic cable market. However, the presence of wireless communication systems and high initial procurement and installation costs are the major restraints for the growth of the fiber optic cable market. According to Mordor Intelligence, the global fiber optic cable market will be valued at US$12.111 billion in 2022, and will rise to US$23.857 billion by 2027.
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