Fiber Optic Connectors: Global Markets

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Fiber Optic Connectors: Global Markets
Published on January 2011

Report Summary

The total global value for the fiber optic connector (FOC) market in 2010 is an estimated $1.9 billion. In 2011, global value is projected
to increase to more than $1.9 billion, as the global economy begins to improve. By 2016, given a compound annual growth rate
(CAGR) of 9.6%, total global value for the FOC market is projected to be nearly $3.1 billion.

Telecommunications is the primary application for fiber optic connectors. The global value for the telecom market in 2011 is projected
to reach nearly $1.9 billion. In 2016, the total global value for the telecommunications sector is projected to be $2.9 billion, a
compound annual growth rate (CAGR) of 9.5%.

The global value for the 'Other' segment of the market in 2011 is projected to reach $79.5 million. This market is expected to increase
at a compound annual growth rate (CAGR) of 13.1%, to reach $147.3 million by 2016.

INTRODUCTION

STUDY GOALS AND OBJECTIVES

This study analyzes the status of the global market for fiber optic connectors. Fiber optic connectors are found in any application
using optical fiber to transmit signal. The primary market for fiber optic connectors is the optical networks built for
telecommunications. Fiber optic connectors are a critical component in optical networks, enabling the optical signal to be transmitted
or retrieved from the glass optical fiber. Only networks of glass optical fiber are considered in this study.

Growth in the fiber optic connector market is linked directly to the expansion of fiber optic networks in the world. Other applications for
fiber optics include medical, military, and industrial applications. This report considers market conditions and opportunities in regional
areas around the globe.

This report provides a standard 5-year planning cycle and global value estimates through 2016. It defines products segments for fiber
optic connector technology categories, analyzes technology options, and determines current application markets, as well as likely
future opportunities. Additionally, this report defines and graphically analyzes these fiber optic connector markets from many
perspectives and categorizes and profiles the companies involved.

The world's economic system is dependent upon its ability to communicate and transmit both voice and data information. Networks of
optical fiber span continents and circle the globe making this communication possible. The rapid expansion in use of the Internet
drives the broader optical market, including fiber optic connectors.

This BCC study reviews and reveals major market trends and provides a snapshot of the present, along with predictions for the future
of fiber optic connector markets and technologies.

REASONS FOR DOING THE STUDY

Fiber optic connectors are an enabling, value-adding technology. Optical fibers of ever-lower signal attenuation continue to be
developed, but the limiting factor for fiber deployment remains the labor involved in building the optical network. A large amount of

Fiber Optic Connectors: Global Markets (From Slideshare) Page 1/14


specialized labor is required to successfully get the signal out of the fiber and into an optical device with minimal signal
degradation. Fiber optic connectors perform this critical function. Looking at the status of the market for fiber optic connectors is one
way to gauge the growth of applications for optical fiber.

SCOPE OF REPORT

This report covers, with a critical eye, the fiber optic connector marketplace. It focuses particularly on the markets and opportunities
for fiber optic connectors in optical networking, industrial, military, sensors, and medical markets.

This study is presented in easy-to-follow sections that overview this subject, define the technology, segment the market by product
type and application, profile companies, and identify suppliers. All dollar amounts are expressed in current 2010 U.S. dollars.

METHODOLOGY

Fiber optic connectors are deployed at the ends of optical fiber. To determine market size and breadth, this report considers optical
fiber and the application markets where it is deployed.

INTENDED AUDIENCE

Network system integrators will use this report to assess the status of the fiber optic connector market to identify suppliers and
systems integrators and produce forecasts of the future markets. Market managers will be able to assess the competition and identify
customers and new suppliers for components. Management consultants will determine whether companies divest or invest in fiber
optic technology based in part on the market projections, competitive strengths, and development issues revealed in this report.

Equipment managers will develop or modify existing products to address the fiber optic technology manufacturing concerns
emphasized in this report. Material suppliers will identify market opportunities and new customers based on the study's projected
growth in applications. Venture-capital managers will identify targets for investment, merger, or acquisition based on companies
identified and described in this report. Strategic planners will identify other companies with critical strains to strategically partner with
so they can share in the overall fiber optic technology growth as projected in this report.

INFORMATION SOURCES

Materials and data presented in this report were obtained from telephone interviews with personnel at the major companies profiled,
as well as from catalogs, the Internet, and the literature search of current articles related to fiber optic connector technology.

ANALYST CREDENTIALS

Lori Weisenbach received a Ph.D. in material science and engineering from the University of Arizona in 1993. Her dissertation was
based on the fabrication and characteristics of sol gel optical waveguides. She then worked for 2 years at Sandia National Labs on
the development of thin-film zeolite filters for gas-separation applications. From 1996 to 2003, Weisenbach covered the transportation
market as both a contributing editor and editor of Advanced Transportation Technology News. She has authored several business
opportunity reports in advanced materials and transportation for BCC.

Table of Content

Chapter- 1: INTRODUCTION



STUDY GOALS AND OBJECTIVES 1
REASONS FOR DOING THE STUDY 1
SCOPE OF REPORT 2
METHODOLOGY 2
INTENDED AUDIENCE 2
INFORMATION SOURCES 3
ANALYST CREDENTIALS 3
RELATED REPORTS 3
BCC ONLINE SERVICES 3
DISCLAIMER 4

Chapter 2: SUMMARY

SUMMARY TABLE GLOBAL MARKET VALUE FOR FIBER OPTIC CONNECTORS, BY SEGMENT, THROUGH 2016 ($ MILLIONS)
5
SUMMARY FIGURE GLOBAL MARKET FOR FIBER OPTIC CONNECTORS, BY SEGMENT, 2008-2016 ($ MILLIONS) 6

Chapter 3: OVERVIEW

INDUSTRY DEFINITION 7
CONCEPTS IN THE INDUSTRY 7
Mechanical Termination 8
Trend Away from Splicing 8
IMPORTANCE OF THE INDUSTRY 8
PRODUCT LIFE CYCLES 9
TECHNOLOGY LIFE CYCLES 9
HISTORY 9
TABLE 1 KEY HISTORICAL EVENTS, 1970S-2000S 10
GOVERNMENT REGULATIONS 11
FORESEEABLE FUTURE DEVELOPMENTS 12
Growth in Telecommunications 12
Fiber to the Home 12
The Google Effect 12
Cloud Computing 12
Private Internets 13
Growth in New Markets 13
Single-use Endoscopes 13
Optical Connections within Computers 13
EFFECT OF GLOBAL ECONOMY 14

Chapter 4: TECHNOLOGY

OPTICAL FIBER 15
SINGLE MODE 15
MULTIMODE 16
CONNECTOR BASICS 16
MOST COMMON CONNECTOR TYPES 16



TABLE 2 MOST COMMON CONNECTOR TYPES 16
SC 16
ST 17
FC 17
LC 17
SMA 17
COMPONENTS OF A TYPICAL CONNECTOR 17
Ferrule 17
Housing 18
Size 18
Shape 18
Boot or Buffer 18
Crimp Eyelet 19
EPOXY VERSUS MECHANICAL 19
Epoxy 19
Epoxy Free 19
Hot Melt Adhesive 20
Polishing 20
SOURCES OF LOSS IN CONNECTORS 20
TABLE 3 SOURCES OF LOSS IN CONNECTORS 20
End Gap 21
Concentricity 21
Dirt and Finish 21
End Angle 21
Numerical Aperture (NA) Mismatch 21
Coaxiality 21
Axial Run-out 22
Core Mismatch 22
Back Reflection 22
PATENT ANALYSIS 22
TABLE 4 APPLICATIONS AND PATENTS GRANTED BY YEAR, 2008-2010 22
INDUSTRY LEADERS IN RESEARCH AND DEVELOPMENT (R&D) 23
TABLE 5 PATENTS BY COMPANY, 2008-2010 23
ADC Telecommunications 24
Corning 24
Panduit 24

Chapter 5: MARKETS BY APPLICATION

GLOBAL VALUE BY SEGMENT OVERVIEW 25
TABLE 6 GLOBAL VALUE OF FOC MARKET BY APPLICATION, THROUGH 2016 ($ MILLIONS) 25
TELCOMMUNICATIONS 26
INDUSTRIAL 26
MEDICAL 26
MILITARY 27
SENSORS 27
TELECOMMUNICATIONS 27
GLOBAL VALUE BY NETWORK TYPE 27



TABLE 7 GLOBAL VALUE FORECAST FOR TELECOMMUNICATIONS BY FIBER NETWORK TYPE, THROUGH 2016 ($
MILLIONS) 28
Access Global Value 28
Premises Global Value 28
Metro/Regional Global Value 28
Long Haul Network Global Value 29
TOTAL TELECOM FIBER DEPLOYED 29
TABLE 8 TOTAL FIBER DEPLOYED FOR TELECOM, THROUGH 2016 (MILLION FIBER-KM) 30
LONG HAUL NETWORK MODEL 30
TABLE 9 GLOBAL MARKET FORECAST FOR FOC IN LONG HAUL NETWORKS, THROUGH 2016 (UNITS AS INDICATED) 30
Model Assumptions 31
Network Design 31
Density of Nodes 31
Dark Fiber 31
Long Haul Fiber Length Deployed 32
Long Haul FOC Deployed 32
Average FOC Prices 32
FIGURE 1 GLOBAL VALUE FOR LONG HAUL NETWORK FOC ($ THOUSANDS) 33
Growth Drivers 34
Growth Inhibitors 34
REGIONAL/METRO NETWORK 34
TABLE 10 GLOBAL MARKET FORECAST FOR FOC IN REGIONAL/METRO NETWORKS, THROUGH 2016 (UNITS AS
INDICATED) 35
Network Design 35
Density of Nodes 35
Dark Fiber 36
Regional/Metro Fiber Deployed 36
Regional/Metro FOC Deployed 36
FIGURE 2 GLOBAL VALUE FOR REGIONAL/METRO NETWORK FOC, 2008-2016 ($ MILLIONS) 37
FIGURE 2 (CONTINUED) 38
Growth Drivers 38
ACCESS NETWORK 39
TABLE 11 GLOBAL MARKET FORECAST FOR FOC IN ACCESS NETWORKS, THROUGH 2016 (UNITS AS INDICATED) 39
Network Design 40
Density of Nodes 40
Dark Fiber 41
Access Fiber Deployed 41
Access FOC Deployed 41
FIGURE 3 GLOBAL VALUE FOR ACCESS NETWORK FOC ($ MILLIONS) 43
Growth Drivers 43
PREMISES NETWORK 44
TABLE 12 GLOBAL MARKET FORECAST FOR FOC IN PREMISES NETWORKS, THROUGH 2016 (UNITS AS INDICATED) 45



Network Design 45
Density of Nodes 45
Dark Fiber 45
Premises Fiber Deployed 46
Premises FOC Deployed 46
FIGURE 4 TOTAL GLOBAL VALUE FOR PREMISES NETWORK FOC, 2008-2016 ($ MILLIONS) 47
Growth Drivers 47
INDUSTRIAL 49
TABLE 13 GLOBAL MARKET FORECAST FOR INDUSTRIAL FOC BY END USE, THROUGH 2016 ($ MILLIONS) 49
FIGURE 5 GLOBAL MARKET FORECAST FOR INDUSTRIAL FOC, 2008-2016 ($ MILLIONS) 50
INDUSTRIAL SENSORS 50
TABLE 14 GLOBAL MARKET FORECAST FOR FOC IN INDUSTRIAL SENSORS, THROUGH 2016 (UNITS AS INDICATED) 51
Fiber Optic Sensor Market Value 51
FOC Units Sold 52
FOC Average Price 52
FIGURE 6 GLOBAL MARKET VALUE FOR FOC IN INDUSTRIAL SENSORS, 2008-2016 ($ MILLIONS) 53
Growth Drivers 53
INDUSTRIAL LASERS 54
TABLE 15 GLOBAL MARKET FORECAST FOR FOC IN INDUSTRIAL LASERS, THROUGH 2016 (UNITS AS INDICATED) 54
Industrial Diodes Sold 55
Industrial Nondiode Lasers Sold 55
Pigtailed Industrial Lasers 55
Industrial FOC Sold 56
Average FOC Price 56
FIGURE 7 GLOBAL MARKET VALUE FOR FOC IN INDUSTRIAL LASERS ($ MILLIONS) 56
Growth Drivers 57
MILITARY 57
TABLE 16 GLOBAL MARKET VALUE FORECAST FOR MILTARY FOC BY END USE, THROUGH 2016 ($ MILLIONS) 58
FIGURE 8 GLOBAL MARKET VALUE FOR FOC IN MILITARY APPLICATIONS, 2008-2016 ($ MILLIONS) 59
MILITARY AIRCRAFT 60
TABLE 17 GLOBAL MARKET FORECAST FOR FOC IN MILITARY AIRCRAFT, THROUGH 2016 (UNITS AS INDICATED) 60
Manned Aircraft 61
Unmanned Aircraft 61
FOC in Aircraft 62
Mil Spec FOC Prices 62
FIGURE 9 GLOBAL MARKET VALUE FOR FOC IN MILITARY SENSORS, 2008-2016 ($ MILLIONS) 63
Growth Drivers 63
NAVAL APPLICATIONS 64



TABLE 18 GLOBAL MARKET FORECAST FOR FOC IN NAVAL APPLICATIONS, THROUGH 2016 (UNITS AS INDICATED) 65
Hydrophones 65
Submarines 65
Mil Spec FOC Prices 66
Global Value from Naval FOC 66
FIGURE 10 GLOBAL MARKET VALUE FOR FOC IN NAVAL APPLICATIONS, 2008-2016 ($ THOUSANDS) 66
Growth Drivers 67
MILITARY FIBER OPTIC SENSORS 67
TABLE 19 GLOBAL MARKET FORECAST FOR FOC IN MILITARY SENSORS, THROUGH 2016 (UNITS AS INDICATED) 67
Number of FOC 68
Average Price of FOC 68
FIGURE 11 GLOBAL MARKET VALUE FOR FOC IN MILITARY SENSORS, 2008-2016 ($ MILLIONS) 69
Growth Drivers 69
MISSILES 70
TABLE 20 GLOBAL MARKET FORECAST FOR FOC IN MISSILES, THROUGH 2016 (UNITS AS INDICATED) 70
FIGURE 12 GLOBAL MARKET VALUE FOR FOC IN MILITARY SENSORS, 2008-2016 ($ THOUSANDS) 71
Growth Drivers 71
COMMERCIAL AVIATION 72
TABLE 21 GLOBAL MARKET FORECAST FOR FOC IN COMMERCIAL AIRCRAFT, THROUGH 2016 (UNITS AS INDICATED) 72
Aircraft per Year 72
Seats per Plane 73
Fraction with FOC 73
Number of FOC 73
FIGURE 13 GLOBAL MARKET VALUE FOR FOC IN COMMERCIAL AVIATION, 2008-2016 ($ THOUSANDS) 74
Growth Drivers 75
MEDICAL 75
TABLE 22 GLOBAL MARKET VALUE FORECAST FOR MEDICAL FOC BY END USE, THROUGH 2016 ($ MILLIONS) 76
FIGURE 14 TOTAL GLOBAL MARKET VALUE FOR MEDICAL FOC, 2008-2016 ($ MILLIONS) 77
ENDOSCOPES 77
TABLE 23 GLOBAL MARKET FORECAST FOR FOC IN ENDOSCOPES, THROUGH 2016 (UNITS AS INDICATED) 78
Global Value for Endoscope Sales 78
Average Endoscope Price 79
Number of Endoscopes Sold 79
Number of FOC 79
FIGURE 15 GLOBAL MARKET VALUE FOR FOC IN ENDOSCOPES, 2008-2016 ($ MILLIONS) 80
Growth Drivers 80



MEDICAL LASERS 81
TABLE 24 GLOBAL MARKET FORECAST FOR FOC IN MEDICAL LASERS, THROUGH 2016 (UNITS AS INDICATED) 82
Global Value for Medical Lasers 82
Medical Lasers Sold 82
Diode Lasers 83
Nondiode Lasers 83
Number of FOC 83
FIGURE 16 GLOBAL MARKET VALUE FOR FOC IN MEDICAL LASERS, 2008-2016 ($ MILLIONS) 84
Growth Drivers 84
MEDICAL SENSORS 85
TABLE 25 GLOBAL MARKET FORECAST FOR FOC IN MEDICAL SENSORS, THROUGH 2016 (UNITS AS INDICATED) 85
Number of FOC Used 86
FIGURE 17 GLOBAL MARKET VALUE FOR FOC IN MEDICAL SENSORS, 2008-2016 ($ THOUSANDS) 86
Growth Drivers 87
SENSORS 87
TABLE 26 GLOBAL MARKET VALUE FORECAST FOR FOC USED IN SENSORS, THROUGH 2016 ($ MILLIONS) 87
FIGURE 18 GLOBAL MARKET VALUE FOR FOC IN FIBER OPTIC SENSORS, 2008-2016 ($ MILLIONS) 88
STRUCTURAL 89
TABLE 27 GLOBAL MARKET FORECAST FOR FOC IN STRUCTURAL SENSORS THROUGH 2016 (UNITS AS INDICATED) 89
Number of FOC used 90
FIGURE 19 GLOBAL MARKET VALUE FOR FOC IN STRUCTURAL SENSORS, 2008-2016 ($ MILLIONS) 90
Growth Drivers 91
SECURITY 91
TABLE 28 GLOBAL MARKET FORECAST FOR FOC IN SECURITY SENSORS, THROUGH 2016 (UNITS AS INDICATED) 92
Number of FOC Used 92
FIGURE 20 GLOBAL MARKET VALUE FOR FOC IN SECURITY SENSORS ($ MILLIONS) 93
Growth Drivers 93
ENERGY 94
TABLE 29 GLOBAL MARKET FORECAST FOR FOC IN ENERGY SENSORS, THROUGH 2016 (UNITS AS INDICATED) 94
Working Rigs Worldwide 95
Fiber Optics Sensor Installations 95
Number of FOC 96



FIGURE 21 GLOBAL MARKET VALUE FOR FOC IN ENERGY SENSORS, 2008-2016 ($ THOUSANDS) 97
Growth Drivers 98

Chapter 6: MARKETS BY CONNECTOR TYPE

GLOBAL VALUE BY CONNECTOR TYPES 99
TABLE 30 GLOBAL VALUE OF FOC MARKET BY CONNECTOR TYPE, THROUGH 2016 ($ MILLIONS) 99
SC 100
ST 100
SMA 100
LC 100
MILITARY SPECIFICATION CONNECTORS 100
OTHER 101
GLOBAL SIZE BY CONNECTOR TYPE 101
TABLE 31 GLOBAL SIZE OF FOC MARKET BY CONNECTOR TYPE, THROUGH 2016 (MILLIONS) 102
SC CONNECTORS SOLD WORLDWIDE 102
ST CONNECTORS SOLD WORLDWIDE 102
SMA CONNECTORS SOLD WORLDWIDE 102
LC CONNECTORS SOLD WORLDWIDE 103
MILITARY SPECIFICATION CONNECTORS SOLD WORLDWIDE 103
OTHER TYPES OF CONNECTORS SOLD WORLDWIDE 103
MARKET SHARE BY CONNECTOR TYPE 103
TABLE 32 MARKET SHARE BY FOC TYPE, THROUGH 2016 (%) 104
SC SHARE 104
ST SHARE 104
SMA SHARE 105
LC SHARE 105
MILITARY SPECIFICATION CONNECTORS SHARE 105
OTHER SHARE 105
AVERAGE FOC PRICES 106
TABLE 33 AVERAGE FOC PRICES, THROUGH 2016 ($) 106
HIGH-POWER SMA 106
ST MECHANICAL 106
SC MECHANICAL 107
LOW-POWER SMA 107
LC 107
SC 107
ST 107
MIL SPEC FOC 108

Chapter 7: INTERNATIONAL ASPECTS

TOTAL GLOBAL VALUE BY REGION 109
TABLE 34 FORECAST CONSUMPTION BY REGION, THROUGH 2016 ($ MILLIONS) 109
ASIA 109
AMERICAS 110
EMEA 110



TOTAL TELECOM VALUE BY REGION 110
TABLE 35 TELECOM FOC CONSUMPTION BY REGION, THROUGH 2016 ($ MILLIONS) 111
ASIA 111
AMERICAS 111
EMEA 111
TELECOM NETWORK MARKET BY REGION 112
LONG HAUL NETWORK 112
TABLE 36 LONG HAUL NETWORK FOC CONSUMPTION BY REGION, THROUGH 2016 ($ THOUSANDS) 112
FIGURE 22 LONG HAUL NETWORK FOC CONSUMPTION BY REGION, THROUGH 2016 ($ THOUSANDS) 113
Asia 113
Growth Drivers 113
EMEA 114
Growth Drivers 114
Americas 115
Growth Drivers 115
METRO/REGIONAL NETWORK 116
TABLE 37 METRO/REGIONAL FOC CONSUMPTION BY REGION, THROUGH 2016 ($ MILLIONS) 116
FIGURE 23 METRO/REGIONAL FOC CONSUMPTION BY REGION, THROUGH 2016 ($ MILLIONS) 117
Asia 117
Americas 117
Growth Drivers 118
EMEA 118
ACCESS FIBER NETWORK 118
TABLE 38 ACCESS FOC CONSUMPTION BY REGION, THROUGH 2016 ($ MILLIONS) 118
FIGURE 24 ACCESS FOC CONSUMPTION BY REGION, THROUGH 2016 ($ MILLIONS) 119
Asia 119
Growth Drivers 119
Americas 120
Growth Drivers 120
EMEA 121
Growth Drivers 121
PREMISES NETWORK FOC BY REGION 121
TABLE 39 PREMISES FOC CONSUMPTION BY REGION, THROUGH 2016 ($ MILLIONS) 122
FIGURE 25 PREMISES FOC CONSUMPTION BY REGION, 2008-2016 ($ MILLIONS) 122
Asia 122
Growth Drivers 123
Americas 123
Growth Drivers 123
EMEA 123



Growth Drivers 124
INDUSTRIAL 124
TABLE 40 INDUSTRIAL FOC CONSUMPTION BY REGION, THROUGH 2016 ($ MILLIONS) 124
FIGURE 26 INDUSTRIAL FOC CONSUMPTION BY REGION, THROUGH 2016 ($ MILLIONS) 125
ASIA 125
AMERICAS 125
EMEA 126
MILITARY 126
TABLE 41 MILITARY FOC CONSUMPTION BY REGION, THROUGH 2016 ($ MILLIONS) 126
FIGURE 27 MILITARY FOC CONSUMPTION BY REGION, THROUGH 2016 ($ MILLIONS) 127
AMERICAS 127
Growth Drivers 127
ASIA 128
Growth Drivers 128
EMEA 128
MEDICAL 128
TABLE 42 MEDICAL FOC CONSUMPTION BY REGION, THROUGH 2016 ($ MILLIONS) 128
FIGURE 28 MEDICAL FOC CONSUMPTION BY REGION, THROUGH 2016 ($ MILLIONS) 129
AMERICAS 129
EMEA 129
ASIA 130
SENSORS 130
TABLE 43 SENSOR FOC CONSUMPTION BY REGION, THROUGH 2016 ($ MILLIONS) 130
FIGURE 29 SENSOR FOC CONSUMPTION BY REGION, THROUGH 2016 ($ MILLIONS) 130
AMERICAS 131
EMEA 131
ASIA 131

Chapter 8: INDUSTRY STRUCTURE AND COMPETITIVE ANALYSIS

DRIVING FORCES 132
FIBER TO THE HOME (FTTH) 132
COMMODITY PRODUCT 132
NEW MARKETS 132
STRATEGIES TO REMAIN COMPETITIVE 133
CONCENTRATION OF INDUSTRY 133
PRODUCT DISTRIBUTIONS 134

Chapter 9: COMPANY PROFILES

TABLE 44 MARKET SHARE OF COMPANIES INVOLVED IN FOC, 2010 ($ MILLIONS/%) 135
ADAMANT KOGYO COMPANY, LTD. 135
ADTEK 136
AFL TELECOMMUNICATIONS 136
AMPHENOL 136
BELDEN 137



CORNING CABLE SYSTEMS 137
DELPHI 138
FOCI FIBER OPTICAL COMMUNICATION 138
MOLEX 138
NTT 139
OFS FITEL 139
PANDUIT 139
SABRITEC 140
SUR-LINK 140
TYCO ELECTRONICS 140


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