Fiber Optic Preform Market Analysis Report By Process, By Product, By End User And Segment Forecasts From 2019 To 2025

Industry Insights

The global fiber optic preform market size has generated a revenue of USD 2.5 billion in 2018. It is expected to witness growth with a 19.6% CAGR over the forecasted years, 2019 to 2025. This can be associated with the rising popularity of the internet connection having higher bandwidth, opportunities across the healthcare industry coupled with huge investments being made across the telecommunication infrastructure.

High-speed data transmission can be done with the optical fibers that are produced by these preforms. These fibers consist of fiber cables that are transparent and are made from silica, plastics, and good-quality glass. They follow the total internal light reflection principle. Fiber optics enhances the operations like illumination and transmission of light, flexible bundling, and delivery systems of the lasers. R&D is being carried out for technological development of optical fiber has led to many innovations and has enabled the usage of such fibers across industries like medical, oil & gas, defense, and utilities.

The network of optical fibers is majorly used in the information technology and telecommunication industries. The need for network infrastructure development has surged the demand for such fiber optic cables. Moreover, the shifting trend towards the usage of communication networks having higher bandwidth is anticipated to boost the demand for optics thereby driving the market of optic preforms.

Rapid advances being made in terms of technology have paved the way for the launching of the fifth generation fiber optic that is based on the concept of DWDM (Dense Wave Division Multiplexing). Further, the surging usage of smart devices, mobile phones, tablets, and laptops is expected to create a huge amount of data thereby generating the demand for such optical fibers.

Product Insights

The market is segmented into single-mode fiber optic, multi-mode fiber optic, and plastic optical fiber optic. The multi-mode fiber optic is anticipated to register substantial growth from 2019 to 2025. This growth can be attributed to features of wider core and longer light wavelength as compared to single-mode fiber optic. Thus, such fibers have more competence for gathering light from a distant laser source. Several manufacturers have started implementing strategic initiatives for handling tasks like testing and assembling by themselves.

End-Users Insights

By end-use, the fiber optic preform market has been segmented into oil & gas, military & aerospace, BFSI, telecom, medical, railways, and others. Among them, the segment of telecom dominated the market and it is also anticipated to register growth in the upcoming years.

Several military & aerospace applications make use of these optic fibers. Thus, the need for the testing of these fibers becomes necessary to check for their endurance and reliability across harsh environments and for ensuring their good performance on the field.

Process Insights

The fiber optic preform can be segmented into OVD (Outside Chemical Vapor Deposition), VAD (Vapor Phase Axial Deposition), PCVD (Plasma Activated Chemical Vapor Deposition), and MCVD (Modified Chemical Vapor Deposition). Among them, the segment of OVD held the largest share of 35.6% across the global market and is anticipated to register the highest revenue in the upcoming years.

On the other hand, the VAD segment is projected to register significant growth during the forecasted period, 2019 to 2025. This growth can be attributed to the adoption of the VAD method for the production of huge glass preforms in bulk quantities thereby driving optical fiber production.

Regional Insights

In 2018, Asia Pacific held the largest share of around 67.0% across the global market and is expected to grow at a significant pace in the upcoming years. In 2017, China had produced 7.55 kt (kilotons) optical fiber preform. But, there aroused a 1.75 kt gap owing to the failure of catering to the demand.

Further, the gap of supply-demand would get widen as the demand would grow in the upcoming years. Moreover, the output and demand for such preforms are projected to reach up to 20.2 and 19.4 kt by 2023 respectively.

COVID-19 Impact Insights

The outbreak of the COVID-19 virus has negatively impacted the fiber optic preform market. As the key manufacturers and raw material suppliers are located across China, hindrance in their supply chain has severely impacted the semiconductor industry. Thus, several manufacturers have started shifting their manufacturing facilities outside China. Moreover, the imposition of work from home policies has reduced the organizational demand for fiber optic cables and other semiconductor devices. But, increasing residential demand for higher bandwidth internet connection owing to the emergence of online education and work from home policies are expected to propel the market growth to some extent over the forecasted period.

Fiber Optic Preform Market Share Insights

This market is concentrated among the few prominent players across the globe. It includes key players like Corning Incorporated, Prysmian Group, AFL, Fujikura Ltd., Optical Cable Corporation, Sterlite Technologies Limited, and Sumitomo Electric Industries, Ltd. They are constantly engaged in product development and innovation to gain a competitive advantage over other players and to expand their reach across the globe.

They are also investing hugely in R&D activities for process improvement for delivering good quality performance. For example, the Shin-Etsu Chemical Co. created a joint venture with the YOFC in June 2015, to setting up the production facility of optical fiber preform.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub-segments. For the purpose of this study, Million Insights has segmented the global fiber optic preform market report based on process, product type, end-users, and region:

• Process Outlook (Revenue, USD Million, 2014 - 2025)
    • OVD
    • VAD
    • PCVD
    • MCVD

• Product Type Outlook (Revenue, USD Million, 2014 - 2025)
    • Single-Mode Fiber Optic
    • Multi-Mode Fiber Optic
    • Plastic Optical Fiber Optic

• End Users Outlook (Revenue, USD Million, 2014 - 2025)
    • Telecom
    • Oil & Gas
    • Military & Aerospace
    • BFSI
    • Medical
    • Railway
    • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • U.K.
        • France
    • the Asia Pacific
        • China
        • Japan
        • India
    • South America
        • Brazil
    • Middle East & Africa (MEA)