Industrial Fiber Networking Market Analysis

Fiber optics or optical fiber is the technology used to transmit the information as pulses of light through a long fiber wire made from either glass or plastic. Optical fiber is used over conventional copper solutions for industrial applications as it has many benefits over the latter. Higher speeds, better temperature resistance, the allowance for longer connections, and they are also safe from electromagnetic interference.  

The Industrial Fiber Networking Market is expected to grow promisingly over the mentioned forecasted period. The main reason is the increased investments and research that manufacturers are making to upgrade and innovate in the market. Also, there is a growth in awareness of fiber networking options worldwide, further propelling the market growth.  

Global Industrial Fiber Networking market was valued at around USD 4.01 billion in 2020 and likely to grow at a CAGR of over 14.13% during 2021 and 2027 to reach USD 11.07 billion by the end of 2027. While, global Industrial Fiber Networking market will have incremental potential of USD 55 billion between 2021 and 2027.

Interesting Facts about Industrial Fiber Networking Industry

• Fiber Networking uses light instead of electricity to transmit data
• Immense amount of data can be processed and transferred at high-speed via Industrial Fiber Networking
• Huge installation cost of major factor hindering growth of this industry
• Growing cyber crime and cyber security to pose threat to growth of Industrial Fiber Networking
• Fiber coverage in U.S. has been reached to 43%

Technological advancements

Technological advancements in the telecommunication industry are increasing the deployment of fiber networking architecture globally. There is a growing demand for better internet worldwide, paired with the growth of FTTx (Fiber to the X), which is a major driving factor of the Industrial Fiber Networking Market. Fiber to the Home (FTTH), Fiber to the Building (FTTB), and Fiber to the Cabinet (FTTC) are a few networking architectures that require the deployment of large fiber networking globally.

Growing Need for High-Speed Internet

There is an ever-increasing need for higher internet speeds due to the immense amount of data traffic getting sent back and forth on the internet for growing industries like e-commerce is also a major driving factor of this market. Fiber networks are not just faster than conventional networking solutions but are known to be safer, more secure, and easier to maintain, which also adds to the growth in the market.   

Another major driving factor that might come into play is the growth in opportunities for industrial fiber networking in the healthcare industry. Fiber optics are being used for endoscopic imaging, biomedical sensing, and other applications. This is another reason why the Industrial Fiber Networking Market is forecasted to grow over the mentioned period.  

High Cost and Complexities in Installation  

The biggest restraining factor of the Industrial Fiber Networking Market is the very high cost of installing and implementing fiber networking solutions. Companies and businesses are hesitant to move away from their traditional DSL lines or coaxial cables as the cost of removing previous systems and replacing them can be very high. The installation process of fiber networks requires expensive equipment and highly skilled technicians, raising the cost of installations. Fiber networking cables are also extremely delicate and easily damaged if bent past a certain point. Some governments also have complex laws for installing fiber underground, which is also a restraining factor.  

The second major restraining factor is the advantages of using wireless communication solutions over fiber networks. Innovations in the wireless communications industry, like improvements in Radio Frequency (RF) and Fiber Space Optics (FSO) solutions, will restrain this market over the forecasted period. Installation of these technologies requires less capital than fiber networking solutions, and some companies may opt for these wireless solutions.

Frequently asked questions about global Industrial Fiber Networking industry