MRO Magazine

Need for Increased Network Bandwidth to Drive the Global Fusion Splicer Market Through 2020, Says Technavio


June 27, 2016
By Business Wire News

LONDON

According to the latest market study released by Technavio, the global fusion splicer marketis expected to grow at a CAGR of close to 9% during the forecast period.

This research report titled ‘Global Fusion Splicer Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes an up to date analysis and forecasts for various market segments and all geographical regions.

Request sample report: http://goo.gl/o7exQw

The report categorizes the global fusion splicer market into five major application segments, of which the top three are discussed in detail below. They are:

  • Telecommunications
  • Enterprise
  • Cable TV
  • Aerospace and defense
  • Others

Global fusion splicer market by telecommunications

Telecommunications is the largest and the fastest growing segment of the global fusion splicer market. The segment is expected to grow at a CAGR of over 10% during the forecast period.

The primary use of fusion splicers in the telecommunications sector is to install fiber-optic aerial cables outside plants or fuse fibers in underground cable installations. The sector is growing at high rate in developing countries such as China, Malaysia, Brazil, and India.

As of 2015, the sector grew rapidly in India, with more than 950 million mobile subscribers. “The availability and rise in the use of inexpensive 3G and 4G enabled smartphones, along with high demand for Internet Protocol-based voice, data and video services is propelling the growth of the market in this sector,” says Asif Gani, a lead analyst at Technavio for embedded systems research.

Global fusion splicer market by enterprise

This segment is expected to grow at a CAGR of over 7% during the forecast period. The financial sector in the US is mainly based out of New York, which is home to stock exchanges such as NASDAQ and NYSE. In addition, data centers in New Jersey and a high concentration of firms that deal in hedge funds in Connecticut require an optimal transport route for the transfer of data. Thus, high-performance optical fibers with low latency, top reliability, and the fastest turn-up times can meet the stringent standards of financial service customers. This sector also requires 40 GB speed or higher, which is only possible with the deployment of high-strength, lengthy, and loss-free fibers, which are formed through splicing.

Even the media and entertainment segment in enterprises have a high demand for optical fibers due to increase in bandwidth-intensive, high-definition 3D video. Rapid growth in video-on-demand, gaming-on-demand, IPTV, and network digital video recorder over the forecast period will increase video transmission significantly, thus compelling this sector to adopt fusion splicers. Companies such as Google are deserting the expensive and undependable satellite-based delivery models to shift to optical transport networks. Optical transport networks can transmit tailored video-dedicated solutions, catering to the requirements of media production facilities, television stations, broadcasters, content distributors, and enterprises with requirements for broadcast quality high-resolution image system.

Global fusion splicer market by cable TV

This segment is expected to grow at a CAGR of over 7% during the forecast period. The cable TV segment is struggling hard to sustain its existence in the era of streaming services such as Apple TV, Hulu, and Netflix. These streaming services are increasing adoption on a daily basis, leading to a decline in more than a million subscribers for cable TV in the US alone since 2012. Consumers no longer prefer bundled package, but opt for à la carte packages, which can be modified as per their convenience.

However, cable TV viewers have not declined substantially in developing countries, like India where streaming services have not yet penetrated the market. In India, cable TV remains the prime source for television broadcasting. Cable TV operators and services are trying to compete with streaming services by offering better services at lower prices. They are also trying to broadcast high-definition and ultra-high-definition content to their customers to prevent them from switching over to Netflix or Apple TV. Cable TV operators are also deploying high-grade optical fibers to support these capabilities on their networks and investing in fusion splicer equipment for easy deployment of these fibers.

“The cable TV segment will experience steady growth, in terms of revenue, during the forecast period due to cable operators’ expansion plans to sustain and recapture their lost market share,” says Asif.

The top vendors highlighted by Technavio’s research analysts in this report are:

  • Fujikura
  • Furukawa Electric
  • INNO Instrument
  • Sumitomo Electric Industries

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

If you are interested in more information, please contact our media team at media@technavio.com.

Technavio Research
Jesse Maida
Media & Marketing Executive
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