Fiber optic connectors: Key market research findings
- Rising number of data centers fuels market growth
- LC is the key revenue generating segment of the market
- Key vendors – 3M, Alcatel-Lucent, Amphenol, Furukawa Electric, Molex, and Ratioplast
Technavio’s market research analysts predict the global market for fiber optic connectors to grow at a CAGR of around 10% between 2016 and 2020. The growth of this market is fueled by the ongoing increase in the number of data centers across the globe. With the recent increase in data rates, the use of fiber-optic cables in data centers is increasing rapidly. Optical technology advances make fibers more affordable and easier to use in data centers. The growing demand for these cables ultimately boosts the demand for fiber-optic connectors. During 2015, the global 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.
The new market research report from Technavio presents a breakdown and analysis if the fiber optic connector segments based on the product type.
“Huge investments are being made to expand the capacity of fiber-optic systems. Governments of many countries, such as UK and China, are investing heavily in the replacement of coaxial cables with fiber-optic cables across all public communication networks. Governments are taking initiatives to improve network infrastructure in their countries, thereby, increasing the connectivity and subsequently enhancing business opportunities,” says Sunil Kumar Singh, Lead Analyst, Hardware & Semiconductor, Technavio Research.
The LC segment accounted for almost 45% of the overall market revenue to become the key revenue generating vertical of the global fiber optic connectors market in 2015. LCs, developed by Lucent Technologies, use a retaining tab mechanism, and their body resembles the square shape of SCs. They are held together with a plastic clip in a duplex configuration. LCs are preferred over other connectors due to factors such as better insertion and return loss characteristics, ease of cleaning, and the option of field installation.
The key vendors in the global market for fiber optic connectors include 3M, Alcatel-Lucent, Amphenol, Furukawa Electric, Molex, and Ratioplast. The connector industry is going through many mergers and acquisitions. Amphenol announced an offer to purchase FCI. Similarly, many Chinese companies are also showing a lot of interest in acquiring small businesses. Until recently, the Chinese have not been active in M&As. However, they now appear ready for acquisition in the US and Europe. Major market players are developing high-quality, affordable, compact, and energy-efficient connectors to cater to growing demand of consumers. Partnerships and collaborations help provide growth opportunities to the companies in terms of enhancing their product portfolios and expanding their reach geographically.
A more detailed analysis is available in the Technavio report, Global Fiber Optic Connector Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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