Key Market Overview:
The Fiber Optic Cable Assemblies Market was valued at USD 5,502.22 Million in 2022, registering a CAGR of 9.3% during the forecast period (2023-2030), and the market is projected to be worth USD 10,986.70 Million by 2030.
Fiber optic cable assemblies are mainly composed of optical fibers, reinforcement strands, and cable connectors. Moreover, fiber optic cable assemblies offer several benefits including high bandwidth, input/output electrical isolation, and resistance to electromagnetic interference among others. The aforementioned benefits of fiber optic cable assemblies are key determinants for increasing its utilization in automotive, IT & telecommunication, aerospace & defense, healthcare, and others.
Factors such as the growing telecommunication sectors owing to rising penetration of 5G infrastructure along with the increasing adoption of advanced communication devices are among the key factors driving the fiber optic cable assemblies. Additionally, the increasing utilization of fiber optic cable assemblies in the healthcare and aerospace sectors for applications including medical devices, aircraft systems, and others are significant factors driving the market growth.
In 2022, NAI Group, a manufacturer of connectivity solutions for high-performance systems, launched multiple new facilities within their plants in Mexico and China. NAI launched separate facilities dedicated to the design, development, and testing of copper as well as fiber optic cable assemblies, box builds, harnesses, and panel builds. Therefore, the rising developments associated with fiber optic cable assemblies are further driving the growth of the market.
Fiber Optic Cable Assemblies Report Coverage:
Growing telecommunication industry is spurring the market growth for fiber optic cable assemblies market
|Report Attributes||Report Details|
|Market Size in 2030 (USD Million)||10,986.70 million|
|CAGR (2023-2030)||9.3 %|
|By Mode Type||Single-Mode and Multi-Mode|
|By End User||Automotive, IT & Telecommunication, Aerospace & Defense, Healthcare, and Others|
- Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia]
- Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
- North America [United States, Canada, Mexico]
- Middle East & Africa [GCC, North Africa, South Africa]
- South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||Corning Incorporated, CommScope Inc., AFL, Prysmian Group, OFS Fitel, Belden Inc., Amphenol Fiber Systems International, Sumitomo Electric Industries Ltd., Fujikura Ltd., and Nexans SA|
The growing telecommunication sector is a prime factor driving the market growth. Fiber optic cable assemblies are mainly utilized in the telecommunication sector for various applications including base stations and communication systems among others. Fiber optic cable assemblies are mainly used to support 5G networks and are capable of providing the necessary infrastructure for the deployment of 5G, owing to its reliable high-speed data transmission capabilities.
Factors such as the rising penetration of 5G infrastructure, increasing adoption of smartphones and advanced communication devices, and the growing demand for reliable and faster connectivity solutions are among the key factors driving the adoption of fiber optic cable assemblies. For instance, according to Viavi Solutions Inc., approximately 2,497 cities across 92 countries around the world have deployed commercial 5G networks as of 2022. Hence, the increasing penetration of 5G networks along with the growth of the telecommunication sector is increasing the demand for fiber optic cable assemblies for its application in base stations and advanced communication systems, thereby, driving the growth of the market.
High investment associated with the installation of fiber optic cable is restricting the market growth
The initial investment associated with the installation of fiber optic cable assemblies is high, which is a prime factor restricting the market growth. Additionally, the cost of maintenance and repair of fiber optic cable assemblies is relatively higher in comparison to traditional copper-based solutions, owing to the design complexities, splicing difficulties, and fragility of fiber-optic solutions.
For instance, according to Dgtl Infra LLC, the average cost of installation of aerial fiber optic cable ranges between USD 40,000 to USD 60,000 per mile. Thus, the high cost associated with the installation of fiber optic cable is further affecting the demand for fiber optic cable assemblies, in turn restraining the growth of the market.
Fiber Optic Cable Assemblies Market Segmentation:
By Mode Type
The mode type segment is divided into single-mode and multi-mode.
The multi-mode segment is anticipated to contribute a substantial revenue share during the forecast period. Multi-mode fiber optic cables are mainly utilized for data transfer rates ranging up to 100 Gbit per second. Moreover, multi-mode fiber optic cables comprise of a larger core diameter which allows the propagation of several light modes and restricts the length of a transmission link, owing to modal dispersion. Multi-mode fiber optic cables are mainly utilized for applications including communication over short distances including buildings, telecommunication rooms, and others. Further, factors including the rising development of network infrastructure and the increasing demand for cost-effective cable assemblies with high bandwidth and speed over short distances are key factors fueling the growth of the multi-mode segment.
Additionally, the single-mode segment is expected to grow steadily during the forecast period. Single mode fiber optic cables are capable of carrying a single beam of light and are ideal for deployment in long-distance telecommunication applications. The core diameter of single-mode cables is much smaller as compared to multimode cables. Moreover, single-mode cables are relatively faster than multimode cables over long distances, owing to the requirement of fewer routers or switches. Furthermore, factors including the rising trend of 5G penetration and the growing need for high data transfer speed over long distances are primary factors fostering the growth of the single-mode segment.
By End User
The end user segment is divided into automotive, IT & telecommunication, aerospace & defense, healthcare, and others.
The IT & telecommunication segment is accounted for the largest share in the fiber optic cable assemblies market. The properties of fiber optic cable assemblies including high bandwidth along with robust and high-speed data transmission are major aspects increasing its deployment in the telecommunication sector
Factors including the growing trend of 5G deployments, increasing adoption of advanced communication devices, and the rising demand for reliable and faster connectivity solutions are major factors driving the growth of the IT & telecommunication segment.
According to the Ookla 5G Map, in November 2021, 5G deployments reached up to 112 countries, representing an increase of 13% from 99 countries in November 2020. Ookla further states that the total number of 5G deployments increased significantly and reached a total of 85,602 deployments in 2021 compared to 17,428 in 2020. Hence, the rising deployment of 5G networks is increasing the utilization of fiber optic cable assemblies for applications including base stations and communication systems among others. The above factors are proliferating the growth of the IT & telecommunication segment.
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. North American region is considered to contribute the largest revenue share in the year 2022. The adoption of fiber optic cable assemblies in the North American region is primarily driven by its usage in the aviation, military, and other sectors.
The deployment of fiber optic cable assemblies in aviation and military applications to offer seamless network connectivity and high-speed data transmission from one unit to another has been a prevailing factor for market growth in the region. For instance, Boeing, a U.S.-based aircraft company, delivered around 330 commercial aircraft by September 2022, representing an increase of almost two-thirds in comparison to September 2021. Additionally, the rising investment in the military and defense sector is a significant factor that is fostering the market demand in the region.
The European region is anticipated to witness substantial growth during the forecast period. The market growth in the region is attributed to growing aviation & defense and telecommunication sectors in the region. Further, factors such as the increasing penetration of 5G infrastructure in multiple countries of Europe are among the major determinants driving the adoption of fiber optic cable assemblies in the region.
For instance, in September 2022, Mavenir and Deutsche Telekom deployed its 5G standalone network in Germany. The expansion of 5G services in Europe is further driving the demand for fiber optic cable assemblies for deployment in 5G base stations, broadcast stations, and communication systems. The aforementioned factors are proliferating the growth of the market in the European region.
Fiber Optic Cable Assemblies Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and application launches have accelerated the growth of the Global Fiber Optic Cable Assemblies Market. Key players in the market include-
• Corning Incorporated
• CommScope Inc.
• Prysmian Group
• OFS Fitel
• Belden Inc.
• Amphenol Fiber Systems International
• Sumitomo Electric Industries Ltd.
• Fujikura Ltd.
• Nexans SA
• In April 2019, NAI Group launched its new series of fiber optic cable assemblies that are specifically optimized for hyper-scale computing in data centers. The fiber optic cable assemblies can be pre-terminated at one end with MPO, LC, or other fiber connector as per the customers requirement.