by Free space optics communication utilizes light propagating in free space to wirelessly transmit data for telecommunication or computer networking. It carries high-speed communication and has a simple workflow of establishing optical links between two locations line-of-sight. The market is gaining significant momentum due to the ability of FSO communications to deliver high bandwidth communications for 5G and fast connectivity.
The Global Free Space Optics Communication Market is estimated to be valued at US$ 6.8 Bn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the Free Space Optics Communication are Boost Oxygen, LLC, CAIRE Inc. (AirSep), Chart Industries, DeVilbiss Healthcare LLC, Inogen, Inc., Oxygen Plus, Inc., Pure O2 Ltd, Invacare Corporation, Oxyzens, Philips Healthcare, Zadro Health Solutions, and 2ND Wind Oxygen Bars. The key players are focusing on new product launches and strategic collaborations to gain competitive advantage in the market.
The key opportunities in the market include rising demand for high-speed broadband connectivity, increasing investments by key players for the deployment of FSO communication systems and growing need for backhaul connectivity in 4G/5G networks. Technological advancements such as increased optical power and bandwidth, efficient modulation techniques, and development of self-aligning transceivers are expected to boost the adoption of FSO communication systems.
Market drivers
Increasing penetration of 5G networks is one of the major drivers propelling the growth of free space optics communication market. 5G requires massive network capacity and Global Free Space Optics Communication Market Size technologies aid network operators in meeting their capacity requirements through high bandwidth connectivity. Additionally, rising demand for fiber-like speed wireless connectivity and growing need for secure and licensed-free broadband connectivity for wireless backhaul are also fueling the demand of free space optics communication globally.
Current challenges in Free Space Optics Communication Market
The free space optics communication market is currently facing challenges such as limited transmission range, strong dependency on line-of-sight transmission, and vulnerability to atmospheric interference. FSO connections cannot pass through walls, buildings, or other solid objects and rely on having a direct line of sight between the transmitter and receiver terminals. Environmental factors like fog, rain, snow cause signal distortion and can reduce availability. Thermal turbulence near the Earth’s surface also degrades signal quality. Finding suitable locations to install FSO terminals within their relatively short transmission ranges while maintaining line-of-sight remains a key difficulty. Standardization challenges exist as no common protocols or platforms have been defined for FSO networking.
SWOT Analysis
Strength: FSO transmission systems have advantages of being secure, license-free and minimally invasive to install compared to fiber optic cables. They are more cost effective for short-medium distance point-to-point links.
Weakness: Limited transmission range of up to 3-5 km depending on weather conditions poses infrastructure challenges. Signal strength drops exponentially with distance making long distance transmission difficult.
Opportunity: Growing demand for high capacity backhaul in areas where fiber deployment is challenging provides opportunities for FSO to complement existing networks. Integration of FSO with RF and wireless technologies can help overcome limitations.
Threats: Advancements in fiber optic and 5G wireless technologies reducing need for intermediate FSO hops poses a threat. Strict weather dependent operation makes FSO vulnerable to disruption compared to other technologies.
Geographical regions with market concentration
North America accounted for the largest share of the free space optics communication market value in 2024 owing to extensive ongoing infrastructure projects for rural connectivity across the US and Canada. The region is estimated to continue leading over the forecast period with major deployments by internet service providers, mobile network operators as well as government agencies.
Fastest growing geographical region
The Asia Pacific region is poised to emerge as the fastest growing market for free space optics communication between 2024-2030 with a CAGR of over 20%. Countries like China, India, Japan and South Korea are investing heavily in upgrading broadband access and mobile networks which is driving new FSO installation particularly for last mile access applications. Growing urbanization and rising demand for high-speed internet across Asia will bolster regional market expansion.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
