APAC: Fuelling Growth for Global Fusion Splicing Market

 

We all know how the rising need for increased network bandwidth is leading to the growth of fiber optic networks globally. With fiber network’s growth, the growth of testing instruments is also on the rise. One such high yielding segment is fusion splicing market.

According the analysts, the global fusion splicer market is going to grow growing at a CAGR of 8.93% during the period 2016-2020. The biggest contributing region to this growth is Asia Pacific (APAC). Asia Pacific countries (APAC) are expected to increase their market share to more than 63% by the end of the forecast period.

Many countries in APAC are still developing nations and consumers there are largely opting for higher bandwidth applications and services with the emergence of new mobile telecommunication standards such as 4G and 5G. India, China, Japan, South Korea, and Taiwan are major growth drivers in this region due to rising internet penetration, the development of high-speed transmission networks and government initiatives.

A rise in the implementation of fiber to the home (FTTH) is the latest trend and is stimulating huge increase in the use of fusion splicing in this sector. Fusion splicing and interconnect are the only options available to achieve longer distance fiber optic cables for an FTTH application. Interconnect can introduce loss up to 0.75 decibels whereas the splice loss in fusion splice is usually less than 0.02 decibel.

The telecom industry in APAC region is surging growth at a steady pace as well. Telecom accounts for majority of the market’s revenue with a market share of almost 65%. The fundamental use of fusion splicer market in the telecommunications sector is in the installation of fiber-optic aerial cables outside plants or fuse fibers in underground cable installations.

Developing countries like Brazil, China, India, and Malaysia are experiencing high growth in this sector due to the increased availability of 3G and 4G enabled smart phones. Also, the high demand for data services, video, and other Internet-based services will propel the growth of the fusion splicer market over the next four years.

Data centers too are fueling growth to fusion splicing market in APAC region. With more companies using cloud technology, developing new data centers is the need of the hours. Cloud service providers and telecom network operators are investing a lot of money in the construction of data centers to help manage and store vast amounts of data. Fusion splicers can assist in increasing bandwidth and cut down on power and cooling costs.

In 2015, the APAC region accounted for almost 57% of the market share owing to the high demand for optical fiber from countries such as China, Japan, South Korea, and Taiwan. There will be no looking back for this market in this region considering several initiatives taken by governmental and non-governmental organizations in the region; this in fact will only spur the growth of this market in APAC during the estimated period.

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