GIA: Fiber-optic components market to reach $31.3 billion by 2015

JANUARY 12, 2011 -- Market research firm Global Industry Analysts, Inc. (GIA) predicts in its newly released “Fiber Optic Components: A Global Strategic Business Report” that the world fiber-optic components market will rebound from the economic downturn to become a $31.3 billion opportunity by the year 2015.

JANUARY 12, 2011 -- Market research firm Global Industry Analysts, Inc. (GIA) predicts in its newly released “Fiber Optic Components: A Global Strategic Business Report” that the world fiber-optic components market will rebound from the economic downturn to become a $31.3 billion opportunity by the year 2015.

Continued migration from copper to fiber networks in the post recession period and the need to offer attractive service packages to capture large a number of subscribers will lead service providers continuing to invest heavily to replace the traditional last mile networks with an end-to-end fiber access network, GIA believes. This trend will translate into increased demand for fiber-optic components.

As fiber optic components embody the core of telecommunications, the depressed business climate in the telecom industry has had a negative impact on the market for fiber optic components, GIA notes. As the economy continues to rebound, GIA expects renewed growth in telecommunications demand as wireless and fiber networks replace copper wires as the primary means of transmission. In addition, with recently concluded 3G auctions, orders for telecom components and cables are expected to see a spike in terms of additional telecom cabling requirements. Advancements in fiber optics technologies and designing of unique application focused products such as high capacity conductors, optical ground wire cables, and optical fiber products that are intended for FTTX (fiber-to-the-curb or home or premise) applications will help drive growth.

As stated by the new market research report, the United States, Europe, and Asia-Pacific account for a major share of the global fiber-optic components market. Beaten and bruised by three years of the worst economic conditions, fiber optic producers and investors expect a better time in 2011. GIA expects the fiber-optic industry to undergo a ‘V’ shaped recovery and maintain a growth path that follows general industrial production into 2011 and beyond.

However, the US and Western Europe is expected to lag behind the global average recovery rate, in GIA’s estimation. While the fiber-optics markets of North America, Japan, and Western Europe will continue to increase moderately after losing ground during the financial crisis, fiber-optic producers in emerging economies such as China, India, and Brazil will use expanding domestic demand to grab a larger pie of the global fiber optic components market. Revenues for fiber-optic transmitters/receivers in Asia-Pacific are expected to surge at a CAGR of more than 7.0% during the analysis period.

Visit Global Industry Analysts, Inc.

More in Business