The demand for fiber optic connector is growing in several industrial verticals including aerospace, medical and military. With the increasing demand for high bandwidth, telecom vendors are venturing into optical networking, which is bolstering the growth of the global fiber optic connector market. According to a report by Transparency Market Research (TMR), the valuation of the market was US$2.9 bn in 2015 and is projected to rise to US$5.6 bn by the end of 2024, expanding at a 7.7% CAGR.
Continuous Rise in Number of Telecom Subscribers to Drive Demand
The ever-increasing consumer demand for high-speed data connections, such as 3G and 4G, is acting as one of the key drivers of the global fiber optic connector market. The widening base of telecom subscribers across the globe, and the resultant necessity to expand telecom infrastructure is anticipated to drive the consumption of fiber optic connectors, especially in emerging nations.
On the other hand, the flourishing growth of the global wireless networking system is negatively impacting the dynamics of the global fiber optic connectors. The cost of installation of wireless networks is much lower than fiber optic connectors. Moreover, the pace of advancement in the field of wireless networking is considerable higher than fiber optics. These factors are hampering the global demand for optical components and modules.
Asia Pacific to Emerge Lucrative Market Owing to Phenomenal Expansion of Telecom and IT Sectors
Geographically, North America was the leading revenue contributor in 2015. Rising trend of video, cloud computing, switching/routing, virtualization, and switching/routing are propelling the need for bandwidth expansion in 4G/LTE networks and data centers. This, in turn, is leading to the rapid penetration of multi-fiber connectors in data centers in North America, particularly in the U.S. Due to aforementioned factor, the region is expected to retain dominance until the end of 2024.
Asia Pacific accounted for a significant share in the global fiber optic connectors market in 2015 and is expected to rise at a tremendous rate over the forecast period. The growth in the number of data centers owing to improving economic conditions and robust development of the IT and telecom sectors is fuelling the growth of the APAC region.