Strong Demand Ahead for Fiber Optic Connectors
The global fiber optic connector market is forecast to reach $4.9 billion by 2020, with a compound annual growth rate (CAGR) of 9.9 percent from 2015 to 2020, according to a new Allied Market Research report. To meet growing opportunities across multiple applications, interconnect manufacturers are growing their product portfolios through new product developments and acquisitions.
The research firm attributes the strong growth to rising demand for high-bandwidth services, together with increased cloud applications, audio and video services, TV-on-demand and online gaming. The report, World Fiber Optic Connectors – Market Opportunities and Forecasts, 2014 – 2020, finds that the North American region will hold the highest CAGR of 9.1 percent during the forecast period, thanks to high adoption of fiber optic connectors in data centers, enterprises and security sectors.
In enterprises, the adoption of fiber optic connectors is related to IT departments improving their network infrastructure and increasing operational efficiency. These interconnects offer higher bandwidth, higher reliability, and improved security.
Increased data center and enterprise demand also will contribute to growth in many related fiber optic component areas. For example, IHS Infonetics recently reported that revenue for 10-, 40- and 100-Gigabit optical transceivers sold into the enterprise and data center markets grew 21 percent in 2014 to $1.4 billion. The research company attributes the revenue growth to increased 40G quad small form factor pluggable (QSFP) spending.
“40G transceivers are ramping up hard as data centers deploy 40GbE, particularly as a high-density 10G interface via breakout cables. 40G QSFP demand growth over single-mode fiber is primarily a result of large shipments to internet content providers Microsoft and Google,” said Andrew Schmitt, research director for carrier transport networking at IHS Infonetics, in a statement.