The global optical fibermarket is growing strongly with one recent study published by Allied MarketResearch, suggesting a CAGR of 11.6% between 2018 and 2025. This would take thevalue from $3,477 million to $8,153 million. Chief among the factorsunderpinning this growth are the: widespread implementation of 5G, from 2020;an increase in the adoption of fiber to the home (FTTH) connectivity; and theemergence of internet of things (IoT).

The InternationalTelecommunications Union (ITU) estimates the market for IoT devices generatingover $1.7 trillion by 2019.5G wireless connection can transmit more data whileproviding a more steady and reliable connection. FTTH, which uses fiber optictechnology to enable faster and more effective communication, is the mostadvanced technology for building the next generation of communication networks.Fiber connections are used by more than 130 million homes. China alone hasalmost 100 million fiber subscribers and European countries, such as Norway,Lithuania, Denmark, Sweden, and Latvia, are approaching near universal access tofiber.

Meanwhile, the use ofoptical fiber in transport is more and more. Optical fiber will greatfacilitate communications within that sector.microducts and microduct bundles is that they boost operators’ capacity, withminimal disruption thanks to the reduced installation time, while reducingongoing operational costs and optimising total cost of ownership

So, although highinstallation cost and the growth in the wireless communication systems couldyet hamper global optical fiber market growth, lucrative market opportunitieswill nonetheless be provided by technological advancements in fiber optic cabletechnology. Furthermore, a rise in investments in OFC network infrastructure isexpected to offset the otherwise dampening effects of wireless communication.Indeed, as Allied Market Research predicts, “the success of 5G is heavilypredicated on a massive availability of fiber connectivity.” 5G is currentlybeing tested in several markets and is expected to begin widespreadimplementation in 2020.