According to a new study, the growth of high-bandwidth services and the need for increasing cloud storage will create increased demand for fiber optic connectors, which will cause the market to explode in the next five years. The report by Research and Markets titled “World Fiber Optic Connectors – Market Opportunities and Forecasts, 2014 – 2020,” predicts the market will reach $4.9 billion by 2020 with a compound annual growth rate of 9.9%.
Other factors contributing to the growth include audio and video services, TV-on-demand and online gaming. The North American region alone is expected to register a CAGR of 9.1% in the forecast period boosted by the need for connectors in data centers, enterprises and security sectors, according to the study.
The security sector is expected to be one of the greatest drivers of the predicted growth. The security systems market is expected to register a CAGR of 12.4% during 2015-2020 due in large part to factors such as huge bandwidth capabilities and protection against interference.
In 2014, lucent fiber optic connectors and subscriber connectors accounted for a share of 29.2% of the global market. Lucent fiber optic connectors have applications in local area networks, telecommunication networks, community antenna television, data processing networks, fiber-to-the-home and fiber-to-the-premises distribution.
Subscriber connectors are expected to reach a CAGR of 11.3% by 2020, the study said. It also predicts wide application areas in lucent connectors, subscriber connectors and multi-fiber termination push on/pull off connectors will further increase market penetration.
Until recently, fiber optic connectors have been difficult and complex to use, but with standardization from manufacturers and technological advanced that increased user-friendliness, the fiber optic connector market has grown rapidly.
Companies participating in the study include 3M, Siemens, T.E. Connectivity, Adtek Group Limited, Amphenol Corporation, Delphi, Extron Electronics, Molex Incorporated, Optical Cable and Shenzhen DYS Fiber Optic Technology.
