The global fiber-optic connector market will grow at a CAGR of 9.65 percent during the period 2016-2020, as per Research and Markets report titled Global Fiber Optic Connectors Market 2016-2020.
Growth of undersea fiber-optic connections will be a dominant trend for market growth, cites the report.
Owing to increase in offshore petroleum exploration and production, the industry is exploring new ways to enhance operating efficiencies and improve recovery of petroleum reservoirs.
Hence, optical fiber is a better alternative as it can carry higher data rates over longer distances than copper cables.
By 2020, an increase in subsea processing will generate more data, resulting in increased demand for the high bandwidth and longer transmission distances of optical fibers.
Amongst the key drivers for market growth, a prominent one will be the increase in number of data centers on a global level.
The number of data centers will hike globally due to technological advances.
Cloud computing lays out an effective path towards global data access. To add to it, the use of compact devices such as smartphones, tablets, and smart wearable devices is escalating by day.
Data centers will provide high-performance computing across multiple industry verticals aiding in boosting technological innovations.
Also, the high initial investment can become a challenge for the market, cites the report.
The installation of a complete fiber-optic system will require high investment consideration with planning and implementation.
Furthermore for selection of the system, the user has to decide the equipment transmission format (analog or digital), the availability of digital transmission hardware, the need for multimode or single-mode fiber, and the type of fiber connectors to be used.
The fiber-optic service is more expensive than the basic cable service. In spite of the growing competition leading to discounted prices for this service, fiber-optic still tends to be more expensive than copper cable options.
Vina Krishnan
