Fiber Optic Connectors Market in 2020
While more current data is not available, the fiber optic connectors market was worth $3.5 billion in 2018. Since then, the market has continued to grow consistently. The largest and most important contributing factor to the market has been the significant growth of the telecom industry. Fiber optic connectors are vital components of the telecom net, making the industry’s continued success a win for the fiber optic connector market. This is likely to be the main source of growth in the market for the oncoming years as well. Another major reason for this trend, especially in 2020, is the COVID-19 pandemic. Due to the massive increase of employees working from home, the demand for higher speed internet has skyrocketed, which has created a larger call from internet providers to upgrade their own hardware to meet the surge of demand. The fastest internet connection available to the public currently comes from the use of fiber optic cables and connectors.
Perhaps one of the most significant factors for the fiber optic connectors market is that there is not a true alternative to the product for those who need it. While many different types of connectors exist, it’s the fiber optic connectors that the market is in need of today, enabling and ensuring its growth. Therefore, while the demand for this product increases, its exclusivity grants it a position devoid of any real competition. The only real restraints to possible growth come from the cost. In fact, the high cost per unit for fiber optic connectors sometimes outweighs the benefits they bring, almost rendering the improvements it offers in particular for the telecom industry. This has caused grounds for concern among many people, including market vendors. Despite these concerns, it is clear that the market is still set to see solid growth.
Fiber Optic Connector Market Projected Growth
Given the aforementioned growth factors and also considering the risks to the field, the fiber optic connector market is still on a clear path toward a much higher value. In fact, by the year 2027, the market is projected to be worth $7.2 billion, over double where it stood in 2018. This will be achieved through a compound annual growth rate of 8.1% over the timeframe mentioned. Looking at the demand by region, North America will come out on top as the largest area for growth. This is largely due to the widespread nature of multi-fiber connectors in data centers and also how large the scope of 4G, and more recently 5G has become across the region. Major players in the fiber optic connector market include companies such as 3M, Furukawa Electric Co. Ltd, Hitachi Ltd, Sterlite Optical Technologies Limited, and Broadcom Limited. This growth will most likely create a faster, more connected world, especially as more people begin to adopt high-speed internet and high tech connected devices into their lives and regions.
The world is becoming more and more connected. As internet speeds and the large scope of internet availability continue to grow, the fiber optic connector market will follow. The increase in demand for high-speed internet in 2020 due to the COVID-19 pandemic, and the growth and demand coming from the telecom networks, contribute to major factors that will add to both the market’s short- and long-term expansion.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.