The global Fibre Optic Cable Market is expected to register a CAGR of 14.5% between 2023 and 2028, according to a new report. Bandwidth demand is presumed to stay strong. The explosion of data traffic from various sources as well as demand for applications such as higher-quality video and virtual reality will likely continue to fuel demand for fibre-based optical spectrum.
- COVID-19 has affected the global economy in several ways. Its consequences include production disruption and supply chain issues, which are still noticeable.
- Telecom operators are looking for high fibre count cables with reduced diameters.
- Fibre standards, such as G.652 and G.657, are critical for network builders in establishing minimum performance criteria.
- The IT and Telecom Sector is expected to witness significant growth.
- Intensive research has been conducted to boost data rates with space-division multiplexing to fulfill exponentially growing demand for optical data transfer.
- For compatibility reasons, larger fibres with the same 125 µm cladding diameter as regular single-mode are increasingly popular.
- APAC is likely to hold a major share of the market, with China dominating the region.
- Adoption of fibre has been growing noticeably in India. Increasing demand for Optical Fibre Cabling from the IT & telecom sector, a rising number of mobile devices, increasing adoption of FTTH, and a surge in data centres are anticipated to fuel the market in India over the coming years.
The CAGR specified by Mordor Intelligence is very much in line with a recent 15% CAGR from Expert Market Research and a 12.33% CAGR from MarketResearchGuru over the same forecast period. According to Expert Market Research, the global fibre cable market is expected to grow to reach approximately US$ 17.7 bn by 2026. Global Information Research offers a more conservative albeit still significant figure of US$12.785 bn by 2028. Research & Markets even expects the market to hit US$ 26.3 bn by 2028, at a CAGR of 15.99% during 2022-2028.
A separate publication from Mordor Intelligence looks at fibre-optic cable market trends in the United States and Europe. In these regions, the fibre-optic cable market is expected to register a CAGR of 9.66%. This is largely driven by work-from-home and hybrid work models and considerable telecom industry growth in recent years. Following the COVID-driven economic recession, all industries, from e-commerce, banking, retail, and manufacturing, to healthcare, are adopting new digital technologies – that require significant bandwidth – to remain competitive.
Other research from the company points out that in the United Arab Emirates, where median 5G download speeds and fixed broadband speeds are among the fastest in the world, increasing penetration of 5G and the advent of 6G are expected to drive market growth.