Free Space Optics (FSO) Communication Market: Technological Growth Map Over Time To Understand the Industry Growth Rate

The global free space optics (FSO) market is highly dynamic owing to the presence of a significant number of big and small players. Some of the prominent participants in the global free space optics market are Trimble Hungary Ltd., Mostcom Ltd., AOptix Technologies Inc., Optelix, LightPointe Communications, Inc., IBSENtelecom Ltd., Harris Corporation, Anova Technologies, fSONA Networks Corp., and Wireless Excellence Limited.

As per a report by Transparency Market Research, the global free space optics market will rise at a phenomenal CAGR of 32.5% from 2017 to 2025. Expanding at this pace, the market which was worth US$92.2 mn in 2016 will likely become worth US$1.07 bn by 2025.

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Application-wise, the key segments of the global free space optics market are storage area network, data transmission, defense, security, airborne applications, healthcare, disaster recover, last mile access, etc. Of them, the application of free space optics for data transmission accounted for maximum share in the market. This because the data transmitted through free space optics is more secure compared to RF or other wireless transmission technologies. Hence, it is preferred over the conventional wireless technologies.

Geographically, the key segments of the global free space optics market are North America, South America, Asia Pacific, Europe, and the Middle East and Africa. Among them, Asia Pacific is projected to outpace all other regions by registering a CAGR of 33.4% from 2016 to 2025. The proliferation of telecommunication and IT in the rapidly expanding economies of India and China is at the forefront of driving growth in the global free space optics market.

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The market for free space optics technology is being primarily driven by the requirement for high speed connectivity at low cost, coupled with the difficulties of deploying fiber. “Free space optics communication technology has gained commercial viability, driven by a number of factors including the rise in the global optical infrastructure, the rise in high bandwidth applications, fiber shortages with respect to both supply and infrastructure, and the cost effectiveness of FSO in comparison to other technologies. Increase in demand for high bandwidth coupled with the incorporation of free space optics in 3G and 4G networks and the growing deployment of this technology in military applications is positively impacting the expansion of the global market,” explains the lead analyst of the TMR report.

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Further, quick deployment and easy installation of free space optical systems allow service providers to roll out new services virtually overnight and this is impacting the market growth positively. The healthy economic growth of emerging markets such as China, Japan, India, Africa and South America is boosting the growth of latest technologies, which in turn, is expected to drive the demand for free space optical systems in the coming years. These driving factors are set to bolster the growth of the global market during the forecast period.

This review is based on the findings of a TMR report, titled, “Free Space Optics Communication Market (Components – Transmitters, Receivers, Modulators, Demodulators, and Encoders and Decoders; Application – Storage Area Network, Data Transmission, Defense, Security, Airborne Applications, Healthcare, Disaster Recover, and Last Mile Access) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017–2025.”

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