Overview:-
Fiber to the home (FTTH) includes installation of fiber optic cables directly to an individual building to provide unprecedented high-speed internet access. FTTH market has gained enormous growth in the recent years considering increasing demand for high speed internet. Another major factor driving the market growth is increasing number of internet subscribers worldwide. Lower energy consumption and sustainable architecture of FTTH too have positively contributed to the overall market growth.
FTTH market is highly driven in the interest of growing demand for higher bandwidth and increasing internet traffic across the world. Proliferation of web-enabled devices coupled with improving internet infrastructure are some more factors supporting the penetration of FTTH services. Moreover, fiber connections produces lesser carbon footprints as compared to conventional copper cables. Thus, rising adoption of fiber connections is considered as more environment friendly option among others. Further, FTTH market is expected to witness incremental growth, as more than 151 countries are adopting National Broadband Networks (NBNs) policies, which uses FTTH as base and aims for building ecosystem with high speed internet access.
FTTH offers internet connection with lesser attenuation and is impervious towards electromagnetic interface. This makes FTTH economical and reliable choice across the communication network segment. Considering rapidly growing adoption of fiber optic networks, vendors are increasingly focusing on technological innovations and investing in R&D for improving FTTH bandwidth. However, high initial cost poses major challenge for the FTTH market growth, especially in emerging economies.
According to the FTTH Conference 2018 report, UAE leads the global race of FTTH penetration with 94.3%. Similarly, the U.S. has 14.5%, Germany has 2.3%, Japan has 69.1%, China has 61.6% and France has 14.9% FTTH penetration. European market has incremental market growth of 20.4%, since 2016. Latvia is one of the prominent markets in the region with 50.6% FTTH penetration. Further, Asian governments are encouraging more investment in FTTH in order to ensure seamless internet infrastructure in the respective countries. Subsequently, these statistics are expected to continue rising over the following years.
Major drivers of FTTH market:
- Universal demand for high speed internet
- Growing adoption of advanced network infrastructure
- Growing investments in R&D for high bandwidth fiber cables
- Incremental demand for entertainment sources for residential applications.
Major restraint of FTTH market:
The global FTTH market is segmented on the following basis:
By Type:
- Residential FTTH
- Single-family Homes
- Multi-dwelling Units (MDU)
- Commercial FTTH
By Speed:
- Less than 50 Mbps
- 50 to 100 Mbps
- 100 Mbps to 1 Gbps
- 1 Gbps to 10 Gbps
By Application:-
- Industrial
- Residential
- Commercial
By Geography:-
- North America
- U.S.
- Rest of North America
- Europe
- U.K.
- Germany
- France
- Rest of Europe
- Asia-Pacific
- Japan
- China
- South Asia
- Rest of Asia Pacific
- Rest of the World (RoW)
- Middle East & Africa
- Latin America
Key players identified for FTTH market include but are not limited to:
3M Communication Technologies, ADTRAN, Inc., Huawei Technologies Co. Ltd., DASAN Networks, Inc., Wuhan FiberHome Networks Co. Ltd., Enablence Technologies, Inc., ZTE Corporation, Mitsubishi Electric Corp., Fujikura Ltd., Superior Essex, Inc., AT&T Intellectual Property, Reliance Industries Ltd., CityFiber Infrastructure Holdings PLC, Verizon Communications, Inc., Nippon Telegraph & Telegraph Corporation, Deutsche TeleKom AG, China Mobile Ltd., Softbank Group Corp., Telefonica S.A. and others.
Introducing advanced infrastructure with higher bandwidth capacity coupled with cost effective solutions is a major market strategy followed by the leading players operating in the market. Similarly, strategic partnership, collaborations and joint ventures are the additional strategies pursued by FTTH providers to outperform competitors. For instance, in November 2017, CityFiber Infrastructure Holdings PLC and Vodafone Group PLC entered into a strategic FTTH partnership to offer FTTH services to minimum 1 Mn homes in the U.K. This strategy is expected to result in 20% growth of current U.K. broadband market by 2025.
