Fiber-optic connector and splice market enjoys dramatic growth

08 Nov 2006

Growth set to continue as copper networks' capacity is exceeded; US market value to triple to $1.6 billion by 2010; fastest regional growth in Japan/Pacific rim.

The fiber-optic connector and splice consumption last year (2005) totaled $1.2 billion. But the consumption value and volume will increase strongly, according to a new market forecast from Electronicast Consultants, which looks at markets for and technology trends of connectors and splices.

This growth, which will see the US market in particular triple in value to almost $1.6 billion will be partially offset by declining average prices. By the year 2010, the worldwide consumption value is forecast to hit $3.7 billion.

"The global connector/mechanical splice consumption is being driven by a dramatic increase in bandwidth demand beyond the limits of traditional copper networks," states the report. "Technological advances in fiber optics are assuring the migration of fiber closer and closer to the end user. This translates into demand for shorter links where connectors represent a substantial share of the total installation cost."

Cost concerns are being addressed with the introduction of smaller, lower cost and easier to install connectors. "Multifiber connector use [more than two fibers], which is still relatively small, will become the primary choice for high fiber density interconnect applications," said Stephen Montgomery, director of the study.

Growth hotspots

Growth market

North America is leading global consumption with 46% or $554.5 million market share in 2005. North American consumption will expand in value to $1.58 billion by 2010, as illustrated in the figure (right). North American connector consumption will be driven by the proliferation of relatively shorter links used in private data and local loop networks.

European connector consumption, 24% of the total in 2005, is led by the European Union member states as they transition to open competition in delivery of broadband services to business, as well as residential customers.

The fastest growth in connector consumption will occur in Japan/Pacific Rim and the Rest of the World (including South America ); regions stimulated by favorable national economic policies and the trend toward telecom liberalization.

This five-year forecast is available immediately from Electronicast Consultants. For detailed information on this or other services provided by ElectroniCast, please contact Theresa Hosking, Marketing/Sales (thosking@electronicastconsultants.com) Tel. +1 650 343 1398.