Increase in data centers across the globe driving fiber optic market
The increase in the amount of data centers across the globe is driving fiber optic connector growth, according to new forecasts from ReportsnReports.
The Global Fiber Optics Market 2016-2020 report reveals says growth of undersea fiber-optic connections and 25 billion connected devices will be key trends for market growth during the next 5 years.
“Due to increasing offshore petroleum exploration and production, the industry is looking at new ways to enhance operating efficiencies and improve recovery of petroleum reservoirs,” the report reads.
“It is considering optical fiber as a good option as it can carry higher data rates over longer distances than copper cables.
By 2020, an increase in subsea processing will generate more data, which will make the high bandwidth and longer transmission distances of optical fibers more attractive.
The forecast predicts the global market to grow at a CAGR of 9.65% from 2016 to 2020. One of the key drivers for market growth will be increase in number of data centers on a global level.
“The number of data centers is increasing globally due to technological advances,” the report states.
“Cloud computing has become an effective way to access data worldwide. Further, the use of compact devices such as smartphones, tablets, and smart wearable devices is flourishing rapidly,” it says.
“Data centers provide high-performance computing across multiple industry verticals and, therefore, help foster more technological innovations.
The growing demand for these cables ultimately boosts the demand for fiber-optic connectors. During 2015, the global fiber optic connector market was dominated by APAC with a market share of almost 56%.
An increase in internet penetration in emerging APAC countries such as China and Japan, along with the need for high-speed internet connections will propel the demand for fiber optic connectors in the region during the forecast period.
According to the report, LC fiber connector segment accounted for more than 44% of the total share of the fiber optic connector market and dominated the industry.
“Benefits such as better insertion and return loss characteristics, easy to clean, flexibility and polarity reversal, and on-field installations are major reasons for the rise in demand for LCs over other connectors,” the report explains.
“When compared to SCs, the LCs has much lesser footprint, which makes them popular among the datacom or telecom segment. Moreover, their high-density patch applications and the combination of small size and latch feature makes them ideal for densely populated racks or panels.
Key players in the market include 3M, Alcatel-Lucent, Furukawa Electric, Molex, , Hirose Electric, Ratioplast-OptoElectronics, Optical Cable, Sterlite Optical Technologies, Sumitomo Electric Industries, TE Connectivity, and Shenzhen DYS Fiber Optic Technology.