July 12, 2024
Free Space Optics Communication Market

Free Space Optics Communication Driven by Demand for High-Speed Data Transmission

Free space optics (FSO) is a line-of-sight technology that uses visible light, infrared or ultraviolet wavelengths to transmit data wirelessly over the air through the use of laser and photo-detectors. FSO communication systems are being increasingly adopted by enterprises and government authorities as an alternative to fiber optics and radio frequency (RF) for high speed data transmission due to their easy installation, flexibility and significant cost savings. With advances in miniature optical components, communication distances of more than 3 km can now be achieved for point-to-point data transmission using FSO at speeds up to 10 gigabits per second (Gbps).

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 key trends:

The free space optics communication market is witnessing increasing adoption of hybrid FSO-RF solutions which leverage both technologies to provide reliable, high-speed connectivity even in adverse weather conditions. Integration of FSO with 5G networks is another emerging trend, with 5G small cell backhaul expected to be a major application area. Ongoing miniaturization of optical components is further improving the flexibility, portability and cost-efficiency of FSO communication systems. Growing investments by telecom operators as well as governments worldwide in developing smart city infrastructure based on IoT is anticipated to boost the demand for FSO networks capable of delivering ultra-high speed connectivity for a wide range of applications.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the free space optics communication market is low as it requires high capital investments and established distribution channels.

Bargaining power of buyers: The bargaining power of buyers is moderate as buyers have limited options for substitutes and high switching costs.

Bargaining power of suppliers: The bargaining power of suppliers is low due to the presence of multiple component manufacturers.

Threat of new substitutes: The threat of new substitutes is low as wired communication systems do not offer the same advantages.

Competitive rivalry: The competitive rivalry is high among the existing players due to their focus on new product innovations.

Key Takeaways

The Global Free Space Optics Communication Market Size is expected to witness high growth over the forecast period.

Regional analysis: Asia Pacific region accounts for around 45% of the total free space optics communication market share led by countries such as China and India. Both countries are focusing on enhancing rural connectivity. Europe holds the second largest market share due to focus on building smart cities.

Key players: 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. These players are focusing on new product innovations to gain market share.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it