Global Free Space Optics (FSO) Market Overview
The key driver impacting the free space optics (FSO) market is the rising use of free space optics (FSO) in the growing aerospace and defense industry. There is high utilization of free space optics (FSO)communications as it is considered one of the key technologies for realizing very-high-speed multi-Gb/s large-capacity aerospace communications. FSO links help in achieving secure and reliable communication in defense applications. The growing aerospace sector is likely to create huge demand for FSO in the coming years. For instance, Aerospace Industry Association (AIA), The U.S. Aerospace & Defense (A&D) industry, is the worldwide leader in developing, designing, and manufacturing technologically advanced aircraft space systems and defense capabilities. As 2019 drew to a close, the Aerospace & Defense industry shows robust yearly growth, with joint industry sales revenue reaching $909 billion. It is a 6.7% rise from 2018. In 2019, A&D recorded $909 billion in sales, rising 6.7% from the prior year. Moreover, the rising innovation in the free-space optical (FSO) communications technology contributes to the growth of the free space optics (FSO) market in the coming years.
According to Value Market Research, the global free-space optics (FSO) market size was valued at around USD 8500 million in 2020 and is estimated to grow at a CAGR of about 40% during the forecast period 2021 to 2027.
The growing demand due to the numerous benefits offered by free-space optics (FSO) is estimated to augment free space optics (FSO) needs in the forecast period. For example, Free space optics (FSO), low installation cost, low bit error rates, high bandwidth availability, lower prices than fiber networks, high speed of data transmission, improved enterprise connectivity, License-free long-range operation (in contrast with radio communication, etc. Moreover, free space optics technology is best suited for military and commercial applications, such as telecommunication. However, the unfavorable environmental factors may hamper the market in the long run. Also, the fluctuation in raw material cost and reducing industrial activities due to COVID-19 negatively impact the market. The current industry trends, such as the integration of technologies to enhance FSO system performance and the rise in adoption of FSO in place of RF communication, are likely to provide market players with new market opportunities.
The free space optics (FSO) market is vast, with many local and global players. The free space optics (FSO) market is extensive, with many international and regional players. The key market leaders follow several strategies to increase their market statuses, such as extending product portfolio, amalgamation, contracts, acquisitions, product upgrades to enlarge their market share across the globe. The major players studied in the report are Mostcom Ltd., Trimble Hungary Ltd., Optelix, AOptix Technologies Inc., Harris Corporation, LightPointe Communications, Inc., IBSENtelecom Ltd., Harris Corporation, Anova Technologies, Wireless Excellence Limited, and fSONA Networks Corp.
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In this research report, the free space optics (FSO) market is segmented by component, modulation, application, end-user, and region.
Analysis by Component:
By component, the report is categorized into transmitters, receivers, transceivers, modulators, demodulators, others. Transmitters and receivers together dominate the component segment with over 30% share in 2020. Transmitters and receivers are the most critical component for effective FSO communications. LEDs are majorly used as transmitters in FSO systems, and photodetectors are used as receivers in FSO systems. Moreover, the low cost of semiconductor lasers or LEDs contributing to the growth of transmitters and receivers components in the forecast period.
Analysis by Modulations:
By modulation, the report is categorized into amplitude, frequency, phase, and polarization. Amplitude dominates the modulation segment with over 20% share in 2020.
Analysis by Application:
By application, the report is categorized into aerospace and defense, telecommunication, healthcare, disaster management, storage area networks (san) others. Telecommunication dominates the application segment with over 25% share in 2020. It is due to the rapidly expanding telecommunication sector across the globe. Moreover, the growing demand for high-speed data communication and rising technological advancement in the telecommunication sector contribute to the increased market demand from the telecommunication sector in the forecast period.
Analysis by End-User:
By end-user, the report is categorized into corporate and commercial. Corporate dominate the end-user segment with over 40% share in 2020. It is due to the several companies are developing and implementing FSO communication solutions worldwide in response to a demand for broadband connectivity without RF interference at a relatively low price point. Moreover, numerous advantages associated with FSO technology such as high bit rates, speed rates, easy and quick deployment, License-free long-range operation (in contrast with radio communication), etc., contribute to the increased market demand in the forecast period.
Analysis by Region:
In the regional outlook of the global Free space optics (FSO) market, the North America region dominates globally with a 32% market share in the forecast period. It is due to the presence of established research centers across North America. Moreover, the technological advancements and extensive usage in the aerospace and defense industry of the U.S. contribute to market growth across North America.
Market Segmentation covered in the Report:
- Aerospace and Defense
- Disaster Management
- Storage Area Networks (san)
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.