According to Technavio's Global Fiber Optics Market 2019-2023 report, the market is expected to grow at a CAGR of around 10% during the forecast period.
The development of new telecommunication standards is expected to be one of the major trends in the market during 2019-2023. Telecommunication standards such as 4G and 5G technologies can be accessed through wireless technologies such as Bluetooth Low Energy (BLE), WiFi, ZigBee, and Z-wave. The networks provide wireless connections that are equivalent to broadband connections, thereby increasing the number of users who can access the Internet from anywhere.
According to Technavio's analysts, one of the key drivers for the global fiber optics market is the increase in global Internet traffic.
The demand for digital content has been increasing substantially due to the growth in Internet penetration across the globe. The demand for high-bandwidth applications is being driven by the increasing usage of smartphones to access the Internet, which has led to the development of ultra-fast broadband services. Technavio says an enhanced network infrastructure that can support high data speeds is required to manage the congestion.
Of the two major applications, the telecom segment held the largest fiber optics market share in 2018, contributing to more than 73% of the market. That segment is expected to dominate the global market throughout the forecast period.
The APAC region held the largest share of the market in 2018, accounting for more than 57% share. It was followed by the Americas and EMEA respectively. The APAC region is expected to dominate the market throughout the period 2019-2023.