Interconnect hardware to net $6 billion

Propelled by a 40% increase in cable installations and a near doubling of transmission equipment installations, the singlemode fiber-optic interconnect hardware market is expected to reach $6 billion by 2005, reveals a new report from fiber-optic market researcher KMI Corp. (Newport, RI).

Annual growth for singlemode connectors will experience a compound annual growth rate (CAGR) of 45% through 2005. The CAGR for multimode connectors in the United States is expected to be 19%.

According to the report, this growth should net $2 billion in sales for singlemode and multimode connectors by the end of the forecast period.

The demand for singlemode connectors in the United States is projected to equal and surpass multimode by volume in 2000, while the total market volume is expected to increase from 56 million units in 1998 to 414 million units in 2005 (see Figure). The unit prices of both singlemode and multimode connectors are decreasing 6-7% per year and should continue to do so throughout the forecast period.

According to the report, ceramic ferrule production and connector termination processes are causing a bottleneck in the market, prompting assembly companies to produce new lines and outsource fabrication to provide cable terminations adequate to consumers' demands.

The report, "U.S. Fiberoptic Connector and Related Hardware Markets," includes detailed information about singlemode and multimode connector unit quality, price, and market value, broken down by connector type, polish type, and ferrule material. It also examines the fiber-optic interconnect hardware market value, including panels, frames, and patch cords, and explores zirconia and polymer ferrule demand and major ferrule manufacturers' production volumes and market share. Visit KMI's Website at www.kmicorp.com for more information.

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