by Free space optics communication (FSO) uses light propagation to transmit data between two points without requiring physical media. The technology can be used to deliver bandwidth equivalent to fiber optics connections but without the need to lay cables. A typical FSO system consists of an optical transmitter, a receiver, and a lens to direct and focus the laser beam. FSO allows for high-speed connectivity and point-to-point or point-to-multipoint network topology in areas where installing cables is difficult. The technology provides reliable broadband connectivity for applications such as enterprise connectivity, disaster recovery, cellular backhaul, and ship-to-ship communication.
The global free space optics communication market is estimated to be valued at US$ 5.9 Bn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing demand for high-speed FSO links between data centers and cellular towers is expected to drive the growth of the free space optics communication market over the forecast period. FSO provides secure connectivity at data rates of over 1 GBps as compared to fiber which can deliver up to 100 GBps, making it suitable for 5G infrastructure densification and edge computing applications. Additionally, the ease of deployment and mobility of FSO links allow operators to provide speedy connectivity in temporary venues and during disaster recovery situations where fiber deployment is challenging. These factors along with the rising demand for ubiquitous broadband connectivity across industries are estimated to propel the free space optics communication market growth.
Segment Analysis
The free space optics communication market is segmented into type, application, end use, and region. Based on type, the sensor segment dominated the market in 2022 owing to its increasing use in numerous applications including defense, healthcare, and industrial sectors. It accounted for around 45% share of the total market. The sensor segment is expected to witness high growth during the forecast period due to the growing adoption of fiber optics technology for lightweight, compact and high-speed communication systems.
PEST Analysis
Political: Governments across countries are supporting the deployment of free space optics communication networks through regulatory frameworks and funding to enhance connectivity. For instance, the US government is investing in deploying FSO networks for defense applications.
Economic: The growing demand for high-bandwidth communication networks from industries is driving the free space optics communication market. The technology offers a cost-effective solution compared to fiber optic cables for last mile connectivity.
Social: With increasing internet penetration and smartphone usage, the demand for high-speed connectivity is rising from consumers. This is boosting the adoption of FSO technology for residential broadband connections.
Technological: Advancements in laser, detector, and optical components are enhancing the performance of FSO systems. Companies are developing solid-state lasers, photon detectors, and precision pointing & tracking systems to increase transmission speeds and range.
Key Takeaways
The Global Free Space Optics Communication Market Demand is expected to witness high growth during the forecast period of 2023 to 2030.
Regional analysis: North America accounted for around 35% share of the total free space optics communication market in 2022. This is attributed to heavy investments by communication service providers and governments in the U.S. and Canada to deploy FSO networks. For instance, SpaceLink is developing a low Earth orbit satellite network using optical inter-satellite links to enable high-speed connectivity.
Key players operating in the free space optics communication market 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. Boost Oxygen holds a leading share owing to its extensive product portfolio of portable oxygen concentrators.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
