Lit Fiber Market: Overview
The size of the global lit fiber market was estimated at USD 3,529.4 million in 2021, and it is anticipated to increase at a CAGR of 16.2%. The demand for lit fiber has expanded because of the rapid expansion of internet bandwidth and the pervasiveness of internet services over time. One of the main forces behind the growth of the global market, this demand is expected to remain robust throughout the forecast period. Businesses that rely significantly on access to the internet are ardent supporters of the market. These networks provide reduced latency, scalability, reliability, and security for businesses with the large data flow.
Businesses in the fiber optic ecosystem have been concentrating on growing their network by laying lit fiber across numerous cities and nations. As a result, these businesses have increased their market share significantly. Flume Internet started offering New Yorkers high-speed internet in May 2022 using underused fiber infrastructure. The company has collaborated with numerous infrastructure partners and asset owners to fully realize its asset-light strategy, enabling it to extend its network across more than 20 areas over the coming years. Zayo presented a blueprint in August 2021 outlining how it intends to illuminate 35,000 buildings in North America and Europe. The company was founded to meet the rising need for illuminated fiber from towers, data centers, and businesses.
Light fiber connections are employed to transfer data from one location to another. Some sectors that use these cables appear to be telecommunication, business, residential, government, aerospace, and private data networks. The demand for high-speed Internet services is expected to continue to grow. Increasing use of new telecommunications technologies like FTTX (Fiber-to-the-X) and 5G mobile applications is also anticipated to propel the industry. As of June 2022, over 70 countries had 5G networks, up from only 38 at the beginning of 2020, according to a GSA report. Thus with the growing number of 5G, the demand for lit fiber will increase in the coming years.
Lit Fiber Market: COVID-19 Impact
The COVID-19 pandemic caused the illuminated fiber market to expand quickly. Many businesses adopted remote working practices during the outbreak, which increased the demand for high bandwidth internet connectivity. As a result, lighted fiber was widely used all across the world. Additionally, businesses are reforming their operations and recovering from the COVID-19 effect, which had previously led to strict confinement measures such as social seclusion and the suspension of commercial activity, all of which caused operational problems. The market would have numerous significant growth opportunities in the upcoming years as a result of the efforts made by enterprises to recover from the pandemic's effects. Consequently, the COVID-19 outbreak favorably affected the Lit fiber sector.
Lit Fiber Market: Drivers
Lit Fiber Cables Dominate the Market due to Increased Use of Internet Demand
A global network of connected devices is the internet. The internet's cornerstone is fiber optics, with lit fibers serving as the conduit for transporting data from one source to another. In recent years, the internet has been used by a sizable section of the world's population. Today, 5.03 billion individuals worldwide utilize the internet, accounting for 63.1 percent of the global population. The number of internet users is likewise fast expanding. The growing importance of data transfer and storage, cloud computing, and IoT drives internet usage. With an increasing number of enterprises and individuals turning to cloud spaces for various operations, the number of internet users is expected to grow rapidly in the future years.
FTTx is in High Demand Driving Market Growth.
FTTx refers to any broadband service architecture that uses lighted fiber as the optical channel to convey data in a local loop for last-mile telecommunications. FTTx includes FTTH, FTTB, FTTP, FTTN, and FTTC. Lit fiber has become an essential component for network evolution due to its ability to support greater bandwidth at quicker speeds. The number of communication applications is always increasing, including features that need more bandwidth and speed. Advanced applications include video technology, OTT, and IoT. The number of users in the OTT Video segment is estimated to reach 3,508.0m by 2027. Thus with the growing number of OTT users, the demand for the market will grow in the future. More network topologies, such as FTTH and FTTB, are necessary as the use of these applications expands. Video technologies take the greatest bandwidth.
Lit Fiber Market: Restraints
Delicate and Costly Nature of Cable to Restrict Market’s Growth
Since fiber is lighter and thinner than conventional metal wirings, it is more susceptible to mechanical or physical damage. Lit Fiber cables can be readily cut or broken by accident during building renovations, and even a single cut on the wire can cause severe inconvenience. It is critical to examine this before deployment to avoid cable damage. Furthermore, lighted fiber is expensive to install. The user would also require specialist equipment to ensure the connection is operationally sound and qualified employees to install the Lit fiber equipment. The entire procedure of installing lighted fiber can result in a large final expense for the user.
Lit Fiber Market: Segment Overview
With Growing Demand for Faster Internet Speed, Demand for Multimode Fiber Cable to Increase
The multimode segment will have the greatest revenue share of the lit fiber market in the forecast period. This segment rapidly expands because this transmission mode is best suited for short distances. It is mostly used in video surveillance and LAN (Local Area Network) networks. Multi-mode cables may easily transfer many light beams with higher attenuation and less brightness across many light modes. The rising demand for larger bandwidth and quicker connection speeds will drive the multi-mode fiber cable market forward. With the increased internet usage for video chats, gaming, online shopping, and social media, there is a surge in demand for high bandwidth from businesses and consumers.
IT & Telecommunication Sector to Dominate Market due to Growing Amount of Data Generation
The increase in data traffic from different sources, including the internet, e-commerce, computer networks, and multimedia (voice, data, and video), has necessitated the development of a transmission medium capable of managing such huge amounts of information. Lit Fiber connections are the solution because of their comparatively endless bandwidth. Lit fiber cable is a critical component of telecommunications infrastructure. Lit Fiber has been the dominant transmission medium during the previous decade, catering to increased bandwidth demands, particularly from telecommunications corporations. Faster fiber rollout is critical for huge data backhauling at high speeds, increasing reliability and lowering latency. The region's telecom companies are expanding their offers by installing a new spectrum. For example, Bharti Airtel estimates that the Department of Telecom (DoT) will receive Rs 8,312 crore in August 2022 for spectrum purchased in the just completed 5G auctions.
Lit Fiber Market: Regional Landscape
Asia Pacific to Acquire Major Market Share due to Growing Internet Penetration
The Asia Pacific will likely emerge as the most promising area during the predicted period. Rising technological developments and widespread usage of technology in the information technology, telecommunications, and administrative industries are driving growth in this region. In India, the use of Lit fiber cables to transport signals with minimal loss is increasing. The government is also increasing its investments in the development of telecommunications services. The Indian government allocated INR 142 billion (USD 1.9 billion) for telecom infrastructure in the Union Budget 2021-22, which involves the installation of broadband in 2.2 lakh panchayats, the construction of a fiber cable-based network for defense services, and the enhancement of mobile services in the North East.
Furthermore, rising demand from the IT and telecom sectors, an increase in mobile devices, increased use of FTTH (Fiber to the Home) connectivity, and a surge in data centers are expected to fuel the fiber optic cables market in India in the coming years. For example, cloud companies collaborate with telecom providers to build edge data centers. (For example, in India, Microsoft has partnered with Reliance Jio, while Airtel has partnered with Google Cloud.)
North America had the second highest revenue share throughout the projected period. Increased internet service penetration, demand for enhanced communication, mobile data, network management, and consumer preference for 5G network services are driving growth. The region's well-developed infrastructure makes constructing illuminated fiber links across North America easier. According to new research by the Fiber Broadband Association (FBA), the number of residences in the United States served by fiber currently surpasses 60 million in 2022, an increase of 12% from roughly 54 million in 2020. Thus with the growing penetration of broadband, the market of Lit Fiber will flourish in the region in the coming years,
Global Lit Fiber Market: Competitive Landscape
In June 2022, Ziply Fiber announced that it had agreed to buy Eastern Oregon Net, Inc, or EONI, one of Oregon's oldest and most reputable internet service providers. Fiber internet, fixed wireless, and telephony solutions are EONI's main products for residential and commercial customers in Baker, Union, and Wallowa counties. The transaction is expected to finalize later this year, subject to regulatory approvals. In January 2022, AT&T announced several adjustments and enhancements to its fiber optic internet package. The company is introducing new 2Gbps and 5Gbps bandwidth tiers to consumers in more than 70 cities across the United States and committing to new clear, straightforward pricing.
Some players in the Lit Fiber Market include AT&T, Attice USA, Comcast, Crown Castle Fiber, Frontier, GigabitNow, Lumen, Spectrum Enterprise, Verizon, Zayo, and others.
Global Lit Fiber Market is Segmented as Below:
Key Elements Included In The Study: Global Lit Fiber Market
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