Free space Optic Communication Market is Transforming with a Rise in Infrastructure Development
Free space optic communication, also known as FSO communication, operates through infrared light or lasers and is a line-of-sight technology that transmits data through the atmosphere. FSO systems allow transmission of data, voice and video through optical links between buildings, air to air platforms and also in satellite networking.
It is easily deployed and requires less licensing compared to microwave wireless communication systems. Free Space Optic Communication Systems Market Demand offer faster data transmission speeds and help overcome the problem of limited spectrum availability with radio frequency technology.
The global free space optic communication market is estimated to be valued at US$ 1.5 Billion in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2024-2030.
Key players operating in the free space optic communication market are fSONA networks, Trimble Hungary, LightPointe, Plaintree Systems and Wireless Excellence.
The growing demand for high-speed bandwidth connectivity across government agencies, enterprises and data centers is propelling the adoption of freespace optic communication technology globally. FSO communication offers gigabit speed data transmission and is rapidly replacing conventional wired and wireless communication networks. Moreover, development of smart cities in emerging nations along with expansion of 4G/5G mobile networks is fueling the deployment of FSO for last mile connectivity requirements.
Key Takeaways
Key players: Key players operating in the freespace optic communication market are fSONA networks, Trimble Hungary, LightPointe, Plaintree Systems and Wireless Excellence.
Growing demand: The growing demand for high-speed bandwidth connectivity across government agencies, enterprises and data centers is propelling the adoption of free space optic communication technology globally.
Global expansion: Moreover, development of smart cities in emerging nations along with expansion of 4G/5G mobile networks is fueling the deployment of FSO for last mile connectivity requirements.
Market key trends
One of the prominent trends in the Free Space Optic Communication Market Size is the increasing integration of Artificial Intelligence (AI) and Internet of Things (IoT) with FSO technology. AI enables self-healing and self-organizing FSO networks for continuous connectivity, while integration with IoT helps enable a wide array of smart applications over FSO infrastructure. Many FSO solution providers are focusing on enhancing the capabilities of their products using AI/IoT technologies to drive future growth.
Porter’s Analysis
Threat of new entrants: Low cost of producing and setting up the infrastructure poses a lower threat from potential new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power as there are several global players offering substitutable products.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to the availability of alternative component manufacturers.
Threat of new substitutes: Substitution threat is moderate as wired networks can be used for similar applications.
Competitive rivalry: Intense competition exists among existing players to gain higher market share by differentiated offerings.
Geographical Regions
North America currently holds the major share of the free space optics communication market, primarily due to large-scale commercial deployment and the rise in necessity for backup communication in developed countries.
Asia Pacific region is expected to witness the highest growth during the forecast period owing to the increase in demand for broadband connectivity, emerging smart city projects, and rising deployment of 5G technology in countries like China and India. Countries in this region are focusing on upgrading their communication infrastructure which is driving the market.
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*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
