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The Forecast of The Fiber Optic Connectors Market From 2016 – 2024.

Fiber Optic Connectors Market: Trends and Opportunities

Fiber optic connectors (FOC) are used to mechanically connect two optical fibers, thereby permitting light to transmit from the core of one fiber to the other fiber in order to link the fiber optic connection equipment.

The factors which are primarily driving the growth of global fiber optic connectors market are increasing demand for high bandwidth in the telecommunication industry and increasing demand for transmission speed and data volume in the data centers. The key features of fiber optical connectors such as low power consumption, cost effectiveness, and high data throughput are expected to fuel the growth of these connectors in the next generation warehouse-scale data center networks. In addition, the increasing application of these connectors in several application areas of the medical sector is playing a significant role in the growth of the global fiber optic connectors market. Furthermore, large scale production and technological advancements of fiber optics is also driving the growth of the global market. The conjoint effect of all these drivers and trends is therefore set to bolster the growth of the global fiber optic connectors market during the forecast period from 2016 -2024.

The rapid growth of the internet and cloud computing has resulted in bandwidth requirements for data center network. This is in turn expected to increase the demand for optical interconnects in the next-generation data center networks. Furthermore, advancements in fiber optic technology have led to the growth in requirement for optical sensors and data links in several applications including defense and aerospace.By deploying the advanced technologies in this field, the manufacturers can utilize this opportunity to increase production in a cost-effective manner as well as satiate the growing demand for fiber optic components among consumers. However, phenomenal growth in the wireless networking system is hampering the advancement of fiber optics. Moreover, the high cost and low level of automation of fiber optic connectors might also restrict the growth of the global market.

Fiber Optic Connectors Market: Scope of the Study

The global fiber optic connectors market has been segmented on the basis of types, applications and geography. A cross sectional analysis of the global fiber optic connectors market broadly across five geographical segments has also been covered under the scope this report.

A comprehensive analysis of the market dynamics which include, market drivers, restraints and opportunities has been included under the scope of this report. Market dynamics are the factors which influence the growth of the market and thereby help to understand the current trends in the market. The market drivers have been analyzed from the economic, demand and supply side. Therefore, this reports offers an exhaustive study on the global fiber optic connectors market and also provides the forecast of the market from 2016 – 2024.The present market size in terms of revenue (USD Million) along with forecast from 2016 to 2024 is also provided in this report. To provide a detailed insight into the market dynamics of the global fiber optic connectors market, market attractiveness analysis has been provided in the report.

Fiber Optic Connectors Market: Competitive Landscape

The competitive profiling of the leading players in the global market and their respective market shares across the five major geographic segments namely, North America, Europe, Asia Pacific, Latin America and Middle East and Africa have been covered under the purview of this report. In addition, the distinct business strategies which have been adopted by the key players have been included in the report.

Some of the major players in the fiber optic connectors market are Broadcom Limited (Singapore), 3M (The U.S.), Furukawa Electric Co. Ltd (Japan), Corning Cable Systems LLC (The U.S.), Alcatel-Lucent SA (France), Hirose Electric Co. Ltd (Japan), Hitachi Ltd. (Japan), Diamond SA (Switzerland), Arris Group Inc.(The U.S.), Sumitomo Electric Industries (Japan), Amphenol Corporation (The U.S.), Sterlite Optical Technologies Limited (India), TE Connectivity Ltd.(Switzerland), ZTE Corporation (China) and Ratioplast Electronics (Germany), among others.

The global fiber optic connectors market has been segmented into:

Fiber Optic Connectors Market, by Types

LC (Lucent Connectors, cleanned by one click cleaner LC)
SC (Standard Connectors , cleanned by one click cleaner SC)
ST (Straight Tip, ) Connectors
MPO/MTP (Multiple-Fiber Push-On/Pull-Off) Connectors , cleaned by Smart Cleaner MPO
MXC Connectors

Fiber Optic Connectors Market, by Applications

Telecom Industry
DWDM systems

Fiber Optic Connectors, by Geography – The market is broadly segmented on the basis of geography into:

North America
The U.S.
United Kingdom
Rest of Europe
Asia Pacific
Rest of Asia Pacific
Latin America
Rest of Latin America
Middle East and Africa (MEA)
Saudi Arabia
South Africa
Rest of MEA

Sales of FTTx and wireless infrastructure optics will total almost $10 billion over the next 5 years.

The combined FTTx and mobile fronthaul and backhaul markets will consume more than 115 million optical devices in 2016, worth some $1.7 billion in revenue to components makers. Close to 70% of these products will be deployed in China. However, demand for access optics in China is projected to moderate in 2017-2021, since FTTH and 4G LTE upgrades are nearing completion. Access infrastructure projects in developing countries and deployments of next generation optics in the developed world, including China, are projected to sustain market growth in 2017 and beyond.

Global sales of optics for mobile infrastructure and FTTx are projected to exceed $2 billion by 2021 with the contribution of China declining to 50%. Despite modest growth forecasted for this market segment, it will remain a significant opportunity for suppliers, adding up to nearly $10 billion over the next 5 years, as illustrated in the figure below.

Figure 1: China as a percent of worldwide sales of access optics, 2017-2021

Chinese service providers will continue to invest in networking infrastructure, but their priorities are shifting from deployments of FTTH and wireless fronthaul optics to adding bandwidth in metro-access and metro-core networks. While China became number one in the world in terms of the number of FTTH and 4G LTE subscribers, the actual speed of Internet access in China remains below the global average. Lack of bandwidth in metro networks is considered a bottleneck and the government is urging service providers to resolve this problem.
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Demand for optics in China and Cloud datacenters will sustain the market growth in 2017-2021


It is hard not to get carried away with excitement about the optics market in 2016. Demand is at an all time high. Strong growth in sales of 100G DWDM and 100GbE products made a lot of headlines this year and expectations for 2017 are high. However, analysis of the broader market for optical components and modules uncovers a few problems. Apart from DWDM and Ethernet optics, all other market segments are likely to remain flat or decline in 2016. This includes SONET/SDH, Fibre Channel, FTTx, wireless fronthaul and optical interconnects (AOCs and EOMs).

The total market for optical components and modules is expected to grow by 17% in 2016, with sales of DWDM and Ethernet products increasing by more than 30%. Massive deployments of 100G DWDM networks in China and 40GbE/100GbE optics in mega-datacenters by cloud-based companies are the main drivers of market growth this year and beyond, as illustrated in the figure below.

The total market for optical components and modules used in optical communications will grow at a CAGR of 10% in 2017-2021. Sales of optics to the cloud datacenter market will continue to grow rapidly in 2017-2021, averaging 20% annually.

The increasing contribution of China to the global market was related to its massive deployments of FTTx and wireless fronthaul optics in 2011-2015, but the situation has changed in 2016. This year it is demand for 100G DWDM and 100GbE optics that increased China’s share of the global market, and we think this trend will continue in 2017-2021.

The Market Forecast report provides a detailed market demand forecast through 2021 for optical components and modules used in Ethernet, Fibre Channel, SONET/SDH, CWDM/DWDM, wireless infrastructure, FTTx, and high-performance computing (HPC) applications. Key inputs include an analysis of the business and infrastructure spending of the top 15 service providers and leading Internet companies, and sales data from 2010 to 2016 for more than 30 transceiver vendors, including more than 20 vendors that shared their confidential sales information.

100GbE Optics is Starting to Light Up Cloud Data Centers, Setting Up Very High Expectations for 2017

Volume deployments of 100GbE optics in mega data centers have finally started. The second half of 2016 is expected to be strong and 2017 should be even better. Demand is high and suppliers are scrambling to keep up. Shortages of high-end optics, such as EML and DFB laser chips, is the main limiting factor for 100GbE market growth in 2016.

The demand for 100GbE in telecom is also very strong, as illustrated in the figure below. Shipments of CFP and CFP2 transceivers were ramping up for several years and large telecom customers, led by Huawei, have a tight grip on the 100GbE supply chain. Sales of 100GbE for telecom applications will continue to increase, but Cloud Datacenters are expected to become the largest consumer of 100GbE optics in 2017.

The main surprise of 2016 so far is a very high demand for 40GbE datacenter optics. Leading cloud companies reduced purchases of 40GbE transceivers in late 2015 and that trend was expected to continue this year. Sales data collected by LightCounting for the first half of 2016, released in the latest quarterly market update report, showed very strong sales of 40GbE products.

Supply shortages in 100GbE optics contribute to the continuing deployments of 40GbE in mega data centers. The success of 40GbE, which has been looked down on as an intermediate step from 10GbE to 100GbE, clearly illustrates the need for just such intermediate steps. History is likely to repeat itself with adoption of 400GbE, benefiting 200GbE optics, which many consider an unnecessary step along the way. LightCounting’s latest Ethernet forecast, released with the High-speed Datacenter Optical Interconnects report, increases our projections for 200GbE products in 2018-2021.

The updated report leverages extensive historical data on shipments of Ethernet and Fibre Channel interface modules combined with market analyst research to make projections for sales of these products in 2016-2021. The report offers a comprehensive forecast for more than 50 product categories, including 10GbE, 25GbE, 40GbE, 50GbE, 100GbE, 200GbE, and 400GbE transceivers, sorted by reach and form factors. It provides a summary of the technical challenges faced by 100GbE transceiver suppliers, including a review of the latest products and technologies introduced by leading suppliers. The report is based on confidential sales information and detailed analysis of publicly available data released by leading component and equipment manufacturers along with considerable input from industry experts, including many mega datacenter operators.

Hyperscale data center market to reach $71.2 billion globally by 2022

According to a new market research report, the world hyperscale data center market is expected to reach a revenue of $71.2 billion by 2022, with a CAGR of 20.7% from 2016 to 2022.

Global Hyperscale Data Center MarketGlobal Hyperscale Data Center Market, by Component, 2015 (% COMPARIOSN)

According to a new market research report, the world hyperscale data center market is expected to reach a revenue of $71.2 billion by 2022, with a CAGR of 20.7% from 2016 to 2022.

As stated by the analyst, “Hyperscale data centers are most widely adopted by cloud service providers to house cloud-based resources and cloud services, accounting for a market share of around 63% in 2015. North America is the largest revenue-generating region for hyperscale data centers, followed by Europe and Asia-Pacific in 2015.”

Key findings of the study include the following:

— The cloud provider segment was the highest revenue-generating segment, constituting over 63% of the total market revenue in 2015. The segment is expected to remain dominant throughout the analysis period.

— The enterprises segment is expected to generate a notable revenue of $7,095.2 million by 2022 growing at a CAGR of 27.7% during the forecast period.

— The rising demand for higher energy efficiency and increasing big data content are expected to drive the developments and advancements in the hyperscale data center market.

— Banking, financial services and insurance (BFSI) is likely to be the highest revenue-generating segment by 2019.

— Increased adoption of hyperscale data centers is anticipated to be witnessed across key sectors such as healthcare, manufacturing, and government utilities from 2016 to 2022.

— In 2015, North America was the highest revenue-generating region, constituting nearly 37% of the total market revenue.

Leading companies profiled in the report include Intel Corporation, Nlyte Software, Sandisk Corporation, Avago Technologies, Cisco Systems Inc., Hewlett-Packard, Ericsson, Cavium Inc., IBM, and Mellanox Technologies, Inc.

OC Vendor Revenues Hit New Highs in Q2 2016.

Revenues of the leading optical component vendors broke the $1.4 billion mark for the first time in the second quarter of 2016, and grew 27% compared to Q2 2015. Nine of the fourteen vendors tracked by LightCounting reported new record high revenues. Component demand was driven by a broad cross-section of market segments, including metro 100G in China, ROADM-based flexgrid builds in North America, and unrelenting hyper scale datacenter capacity expansion.

100G products of all types experienced strong demand growth in the second quarter, with CFP-ACO, CFP-DCO, QSFP28 (CWDM and LR4), CFP2, and CFP4 each cited by one or another vendor as driving their revenue to new heights. Surprisingly, demand for technically mature 10G transceivers (in XFP and SFP+ packages) also showed very strong growth. 40 and 80 km reach 10G device shipments saw an especially large uptick, and one driver of those particular products demand is believed to be the expansion of aggregation and metro edge networks in China.

Despite the stellar growth at the component level, telecom networking equipment sales increased 14%, while datacenter storage and switching gear sales continued to trend downward, falling 5% compared to 2Q 2015. The disparity in growth rates between system and component vendors reflects the growing influence of white box system makers (not included in our reported datacom equipment figures), and the increasingly common sale of components directly to end-customers.

A key question for CEOs and their business planners is how long this surge in demand will continue. A number of vendors reported that popular product lines were capacity constrained in Q2, despite recent capital investments. In the past the component industry has fallen victim to ‘pipeline effects’, with demand multiplying as it moves down the supply chain, resulting in inventory corrections following large increases in demand. Today’s tighter coupling between component suppliers and end-customers should lower the likelihood of this happening again or reduce its impact, but it remains a risk.

Detailed shipments of 100GbE optics in the first half of 2016 are presented in LightCounting’s Quarterly sales database, released along with the Market Update Report. The database includes historical data on quarterly shipments and pricing of more than 100 products in 2014-2015. More than 20 leading optical transceiver suppliers contributed data to this report.

The report also presents an analysis of revenue and spending trends of top-tier telecom and Internet service providers, and the financial results of telecom and datacom equipment vendors, including the market shares of the leading suppliers of 100G DWDM transport equipment.

25 billion connected devices by 2020 will ignite global fiber-optic connector demand

“The global telecom sector is growing immensely in emerging countries,” notes Asif Gani, a lead embedded systems research expert from Technavio. “Data traffic and the use of mobile broadband will increase in African countries such as South Africa, Botswana, Ghana, and Nigeria due to factors such as a beneficial environment for investment and customer services, during the forecast period. Latin American mobile network operators are also increasing their investments in network infrastructure due to burgeoning customer demand for mobile data.”

Moreover, the fiber-optic connector market in APAC is estimated by Technavio to grow at a CAGR of more than 12% during the forecast period. An increase in internet penetration in emerging APAC countries such as China and Japan, along with the need for high-speed internet connections, is driving the demand for cables and connectors in the region.

Similarly, the fiber-optic connector market in North America is estimated to grow at a CAGR of close to 12% during the forecast period. North America is expected to increase its adoption of fiber-optic connectors in data centers, enterprises, and security sectors. According to the analyst, the outlook for network equipment spending in North America remains robust and “is mostly driven by the move to cloud architectures and the never-ending quest to make IT infrastructure more secure.”

Finally, the fiber-optic connector market in Europe is estimated to grow at a CAGR of close to 13% during the forecast period. The report sees Europe making progress in FTTH penetration. “By September 2015, there were more than 35.9 million FTTH/B subscribers in Europe,” notes Technavio. “In 2015, there was continued structural growth in fiber rollout throughout Europe, which is expected to grow during the forecast period with increasing penetration rate.”

Global Fiber Optic Attenuators Market Drilldown

VOA( Variable Optical Attenuator)From QY Market Research, the Global Fiber Optic Attenuators Consumption 2016 Market Research Report is a professional and in-depth study on the current state of the fiber-optic attenuators market.

The report projects the growth rate of the fiber optic attenuators market during the forecast period, estimates the size and valuation of the industry in the coming years, and states the key drivers and restraints affecting the growth of the market, as well as current trends and opportunities.

The study’s analysis of key manufacturers analysis includes the following companies: DiCon Fiberoptics, Corning, AFL, OZ Optics, Alliance Fiber Optic Products (AFOP), Newport Corporation, EXFO, Amphenol Fiber Optic Products, Fibertronics, TE Connectivity, L-com, Thorlabs and EigenLight Corporation.

The report segments the worldwide fiber optic attenuators market on the basis of product type, market application, and end user segments. Relevant data gathered from regulatory authorities has been compiled to determine the growth of the segments.

The Optical Component Business May Set a New Record in 2016

The average profitability of optical component and module suppliers was very close to zero over the last 5 years, despite strong demand for optics. Compared to every other level of the industry supply chain, profitability of the optical component manufacturers was the lowest by far.

Financial reports of several suppliers of optics started to show signs of improvement over the last 2-3 quarters. The average profitability of optical component and module vendors was 2% in 2015, compared to a loss of 1% in 2014. There is a good chance for reaching 5-7% profitability in 2016-2017 and setting a new record. The highest profitability achieved so far was 5.5% in 2010, preceded by more than ten years of heavy losses.

Net profit margins in the optical components value chain

Source: Public financial reports

Several component vendors restructured their businesses in 2013-2014 and these efforts are starting to pay off now. Accelink, Applied Optoelectronics, Coadna, Neophotonics and Oclaro reported significant improvements in financial performance. Acacia joined the list of publicly traded vendors recently and holds the record with a 17% net margin for 2015. Finisar’s profits started to improve in the second half of 2015 and we expect this trend to continue.
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SYOPTEK’S One-Click Cleaner SC (Cleans SC,ST,FC,E2000 connectors)

one click cleaner sc

SYOPTEK’S One-Click Cleaner SC  is an easy-to-use option for cleaning connectors in adapters. Simply insert the One-Click Cleaner into an adapter and push until an audible “click” is heard. The One-Click Cleaner uses the mechanical push action to advance an optical grade cleaning tape while the cleaning tip is rotated to ensure the fiber end-face is effectively, but gently, cleaned.

The One-Click Cleaner is a must-have for field technicians. Small enough to fit in a shirt pocket and a great addition to cleaning kits.

Save your wrist – no more twist!

• Ergonomic, comfortable design with single action cleaning
• Precise mechanical action delivers consistent cleaning results
• Effective on a variety of contaminates including dust and oils
• Automatically advance ensures each clean is performed with fresh cleaning tape
• Low cost per clean
• Compliant with EU/95/2002/EC Directive (RoHS)

• Cleans connectors on jumpers and in adapters
• Cleans a wide variety on connector types: SC, ST, FC, E2000