The Asia Pacific (APAC) continues to show significant global growth in fiber network deployments. Fiber optics, the technology used for transmitting images, voice and data through thin and transparent fiber strands made of glass or plastic (aka optic fiber), is at the forefront of this growth.
Fiber optics is specifically designed for high-performance and fast-speed data networking, and is extensively utilized in telecommunication services such as the Internet, television and telephones. Numerous industries rely on fiber optics to transmit light signals over long distances.
These light signals are encoded with data, similar to the data displayed on a computer screen. The fiber transmits this data through a light signal to a receiving end, where the light signal is then decoded into data.
Steady Growth of Fiber Optics Market
In 2022, the global fiber optics market reportedly reached $10.8 billion and is expected to surge to $26.3 billion by 2028, exhibiting a compound annual growth rate (CAGR) of 15.99% from 2022-2028.
Meanwhile, a report by ResearchAndMarkets.com suggests that the Asia-Pacific fiber optic components market is expected to grow at an 8.5% CAGR during 2021-2027.
Fiber optics has been dominating the telecommunications industry lately, driven by the high demand for internet services. The constant need for high-bandwidth communication and data transmission services has resulted in steady growth in the telecommunications and information technology sectors.
Compared to traditional copper wires, fiber optic internet is considered more reliable during power outages as the fibers are made of glass and do not require electricity to operate. Moreover, fiber optics have a greater bandwidth capability, allowing for faster transmission of more information than traditional copper wires.
The digital divide remains a significant issue globally, especially in rural areas. Fiber optics is bridging this gap by providing reliable internet connectivity to these communities, opening up new opportunities for e-learning and remote work.
Another factor fueling the growth of the fiber optic market is technological advancement, which has greatly reduced the cost of deploying fiber optic cables, making them more accessible. This enables service providers to offer competitive pricing plans to users.
Plans for Optic Fiber Development in Asia
According to its finance ministry, Israel recently announced its plan to construct a 254-kilometer (158-mile) fiber-optic cable between the Mediterranean and the Red Sea, establishing a permanent link between Europe and the countries in the Gulf and Asia.
The state-owned energy company, Europe Asia Pipeline Company (EAPC), will build the cable along the path of an existing oil pipeline that spans Israel from the Mediterranean port of Ashkelon to Eilat on the northern Red Sea.
Itzik Levy, EAPC’s chief executive, has said that the project "will position Israel as a communication land bridge connecting the Gulf countries and Asia to Europe."
According to the ministry, the cable will be available under a 25-year lease to any telecom company licensed in Israel. The cable will be connected to further subsea cables from Europe, Asia and the Middle East.
In China, several state-owned telecom firms are developing a $500 million undersea fiber-optic internet cable network aiming to connect Asia, the Middle East and Europe, rivaling a similar U.S.-backed project.
The proposed EMA (Europe-Middle East-Asia) cable would link Hong Kong to China's island province of Hainan and further connect to Singapore, Pakistan, Saudi Arabia, Egypt and France.
The project plan escalates the ongoing tech war between Beijing and Washington, DC. China Telecommunications Corporation (China Telecom), China Mobile Limited and China United Network Communications Group Co. Ltd. (China Unicom) are working on the most advanced subsea cable networks in the world.
