The global fiber optical cable market is expected to grow from $66.54 billion in 2021 to $89.91 billion in 2022 at a compound annual growth rate (CAGR) of 35.1%. The market is expected to reach $227.54 billion in 2026 at a CAGR of 26.1%, according to Research and Markets.
Asia Pacific was the largest region in the fiber optic cable market in 2021. North America was the second-largest region in the fiber optic cable market. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
Rising demand for higher bandwidth and faster speed connections will enhance the growth of the fiber optic cable market. There is a surge in demand for high bandwidth from enterprises and individuals due to increased use of the internet for video calls, gaming, online shopping, and social media.a Fiber optic cable use light to transmit data instead of electricity so that it can enhance and speed up the internet connections that are capable of handling higher bandwidth.
For example, 4K Ultra High Definition (UHD) TV at homes consumes approximately 15-18 Mbps of data which is three times more than the plain HD TV. By 2022, it is estimated that about 62% of connected flat panel TV sets will be 4K. This focus on increasing demand for higher bandwidth increasing video consumption. Thus, rising demand for faster speed connections and higher bandwidth is driving the fiber optic cable market’s growth.
The increase in the adoption of wireless communication systems is expected to limit the growth of the fiber optic cable market. In recent years, demand for wireless services increased exponentially. The emergence of new technologies such as the internet of things (IoT) has increased the adaption of wireless communication systems.
For instance, mobile technologies and services generated $4.1 trillion in economic value added (4.7 percent of global GDP) in 2019. In 2020, the number of global smartphone users is forecasted to total 3.5 billion, registering a 9.3 percent increase from 2019. Therefore, the high usage of wireless communication systems is hindering the growth of the fiber optic cable market.
The technological advancement in the fiber optic cable is a key trend driving the growth of the fiber optic cable market. Wavelength division multiplexing (WDM) is the recent technological improvement in the fiber cables. Wavelength division multiplexing is a technique of multiplexing the number of optical carrier signals through a single optical fiber channel by varying the wavelengths of laser lights.
WDM allows communication in all directions in fiber cable. WDMs are used on a single optical fiber to blend light signals coming from different optical fibers. This is attained by using a coupler at the WDM input. In 2023, Asia-pacific is expected to be the fastest growing market for WDMs and multiple companies in China such as ZG Technology, Optic Network Technology, are the leading manufacturers and suppliers of WDMs. BCS Bureau