Harsh Environment Fiber Optic (HEFO) Market Forecast From ElectroniCast

 

According to ElectroniCast , the worldwide use of fiber optic components used in harsh environments is forecast to reach $7.26 billion in 2027… 

Aptos, CA (USA) – February 28, 2018 -- ElectroniCast, a leading market and technology research consultancy addressing the fiber optics communications industry, today announced the release of an extensive market study report of the global use of the fiber optic components, and supporting devices and parts, which are designed to operate in harsh environments, beyond the environment of commercial telecom and datacom (premise) installations. 

According to the ElectroniCast study, the worldwide value of Harsh Environment Fiber Optic (HEFO) components reached an estimated $2.74 billion last year (see Figure 1). In this new market study, for the first-time - ElectroniCast added the consumption totals of fiber point sensors used in harsh environments to the total value data.

The value of HEFO components are forecasted to increase at an average annual growth rate of 11.8% (2017-2022) and 8.6% during the 2^nd-half of the forecast period (2022-2027), reaching $7.26 billion in 2027. Market forecast data in this study report refers to consumption (use) for a particular calendar year; therefore, this data is not cumulative data.

The Military/Aerospace category is set to maintain the leadership position, in terms of value, throughout the forecast period; however in terms of volume (quantity of units), the Commercial/Industrial is set to maintain the dominant leadership position; HEFO components are priced relatively much lower in Commercial/Industrial applications versus Military/Aerospace applications.

Through the 1990-2000 decade, the harsh environment active fiber optic component consumption was dominated by system contractor’s captive production.  These components and parts typically were custom-designed for the specific application, starting from purchased commercial units, which were then modified (a substantial design effort) to meet the environmental requirements of a specific missile, spacecraft, aircraft or other system.  Some of these system contractors now are transitioning into supplying these components to other contractors, and some commercial-component vendors are developing harsh environment versions of their commercial components.  A major share of harsh environment fiber optic cable assemblies (both plastic and glass optical fiber based) are provided by connector vendors and by specialized cable assembly operations.  An estimated 48% of the total worldwide value of $2.74 billion is attributed to the “available” merchant market relative to industry standard product serving the “rugged” or harsh environment demand in 2017.

The environments encountered by the components in harsh environments often require custom designed packaging, with much smaller quantities required, compared to packaging of components for conventional/commercial applications.  The environmental extremes that must be accommodated are greater, there often is a need for minimizing size and weight, and shock, temperature and vibration environments are more extreme. 

In military and aerospace applications, the package must be verified, by extensive tests, to withstand the specified environmental extremes.  These design, tooling and test/qualification costs often must be amortized over dozens to hundreds of packages, in contrast to the thousands to hundreds of thousands (and up) involved in commercial applications; therefore, the Global consumption of packages for production of harsh environment components and devices will expand at a modest rate (as design and qualification costs increasingly have been amortized over earlier production). 

     

     This market forecast report, which is available immediately, is part of a consultant service from ElectroniCast Consultants to our clients. For detailed information on this or other services provided by ElectroniCast, please contact: montgomery@electronicast.com  

ElectroniCast Consultants – www.electronicast.com specializes in forecasting trends in technology forecasting, markets and applications forecasting, strategic planning and consulting. ElectroniCast Consultants, as a technology-based independent forecasting firm, serves industrial companies, trade associations, government agencies, communication and data network companies and the financial community.  Reduction of the risk of major investment decisions is the main benefit provided.  ElectroniCast Consultants’ goal is to understand the challenges and opportunities facing clients and to provide timely, accurate information for strategic planning.

Fiber Optic Fusion Splicer Global Market Forecast & Analysis 2017-2027

New Report from ... ElectroniCast

www.electronicast.com 

Release Date:           January 23, 2018

Text Pages:               592 pages  – PDF

Excel File:                  Market Forecast Database (2017-2027)

PowerPoint File:       Summary Data Figures

Subscription Fee:     USD 5100         Files sent by E-mail                     

Analyst Inquiry Services are included in the fee.

One-Fee Policy         All employees of the client company/organization may use this report worldwide at the consultant service subscription fee shown above.

Report Description

This ElectroniCast report provides estimates of 2017 and a 10-year forecast of the use of fiber optic fusion splicer machines.  The market forecast data are segmented by the following functions:

·        Consumption Value (US$, Million)

·        Quantity (Number/Each)

·        Average Selling Prices (ASP $, each in Thousands)

Applications  

The ElectroniCast global fiber optic fusion splicer market is segmented into the following major application categories:

·        Telecommunications/Multimedia

·        Private Enterprise Networks

·        Cable TV/Multimedia

·        Military/Aerospace (Commercial and MIL-SPEC)

·        Specialty (intra-enclosure, test and measurement, rental units, harsh environment industrial, bio-photonics, sensors, laboratory, manufacturing/production of fiber optic components/devices, other applications, and non-specific uses)   

This ElectroniCast report provides our estimates and forecasts of the consumption value of fiber optic fusion splicers, segmented into the following geographic regions:

·        North America

o     United States of America (USA)

o     Canada

·        Latin / South America

o     Argentina

o     Brazil

o     Mexico

o     Rest of Latin / South America

·        Europe

o     Commonwealth of Independent States (CIS)

o     United Kingdom

o     France

o     Germany

o     Italy

o     Rest of Europe

·        Middle East

o     Turkey

o     Rest of Middle East

·        Africa

o     South Africa

o     Rest of Africa

·        Asia Pacific

o     Greater China Region

o     Southern Asia

o     Rest of Asia Pacific

ElectroniCast market data estimates and forecasts are also segmented by each of the following fusion splicer (machine) types:

                    Types of Fusion Splicers

                                

                                 Single Fiber

                                              Bench Top: Core-to-Core Single Fiber

                                              Bench Top: Fixed Alignment Single Fiber

                                              Micro/Handheld: Core-to-Core Single Fiber

                                              Micro/Handheld: Fixed Alignment Single Fiber

                                

                                 Multifiber (Ribbon/Ribbonized)

                                              Bench Top

                                              Micro/Handheld

                                               

Microsoft Excel- Data Base Structure    At each database level, the ElectroniCast estimates and forecast for fusion splice machines is built from the bottom up, segmented by each machine –type, arranged in a hierarchy, of the types of fusion splicers, and summed upward; and the fusion splice machine per use (application) is arranged in a hierarchy and summed upward. The estimates and forecast for each fusion splicer (machine) type in each country and/or region is in terms of quantity (unit/each), value (US$ Million) and average selling price. 

Excel File Facts –

Number of Market Forecast Data Tables:                                            321

Not all data Tables found in the Excel File are placed in the

PDF (text) of the report (these are extra Tables)

Number of Spreadsheets (Excel Worksheets)                                   26

One for each region, country, the global summary

Number of Data Cells                                                                                56,628

2,178 data cells per worksheet x 26 worksheets

Information Base for the Market Forecast

                                                           

Primary Research     Estimates and forecasts are based on analysis of information obtained continually since 1994, and now updated through the middle of January 2018. 

ElectroniCast analysts perform interviews with authoritative and representative individuals in the fiber optics industry plus telecommunications, datacom, military/aerospace and other communication industries, instrumentation/ laboratory – R&D and factory/manufacturing, from the standpoint of both suppliers and users of fiber optic fusion splice products. The interviews were conducted principally with:

• Engineers, marketing personnel and management at manufacturers of fiber optic fusion splice equipment, mechanical splice, connectors, transceivers, as well as laser diodes and photodiodes, application-specific ICs, packages, ferrules and cables, substrate materials, optical waveguide and other components used in the fabrication of optoelectronic transceivers, cable assemblies and installation apparatus

• Design group leaders, engineers, marketing personnel and market planners at major users and potential users of cable, cable assemblies, connectors, installation apparatus, passive devices and transceivers, such as telecommunication transmission, switching and distribution equipment producers, data communications equipment producers (switches, hubs, routers), computer and workstation producers, weapon system, aircraft and spacecraft electronic equipment producers, optical instrumentation system producers and others.

• Other industry experts, including those focused on standards activities, trade associations, and investments

           

The interviews covered issues of technology, R&D support, pricing, contract size, reliability, documentation, installation/maintenance crafts, standards, supplier competition and other topics. Customers also were interviewed, to obtain their estimates of quantities received and average prices paid, as a crosscheck of vendor estimates. Customer estimates of historical and expected near term future growth of their application are obtained. Their views of use of new technology products were obtained.

           

The analyst then considered customer expectations of near term growth in their application, plus forecasted economic payback of investment, technology trends and changes in government regulations in each geographical region, to derive estimated growth rates of quantity and price of each product subset in each application. These forecasted growth rates are combined with the estimated baseline data to obtain the long-range forecasts at the lowest detailed level of each product and application.

Secondary Research   A full review of published information was also performed to supplement information obtained through interviews. The following sources were reviewed:

§         Professional technical journals and papers

§         Trade press articles

§         Technical conference proceedings

§         Product literature

§         Company profile and financial information

§         Additional information based on previous ElectroniCast market studies

§         Personal knowledge of the research team.

In analyzing and forecasting the complexities of the world region markets for fiber optic test and measurement products, it is essential that the market research team have a good and a deep understanding of the technology and of the industry. ElectroniCast members who participated in this report were qualified.

Bottom-up Methodology     ElectroniCast forecasts are developed initially at the lowest detail level, and then summed to successively higher levels. The background market research focuses on the amount of each type of product used in each application in the base year (last year), and the prices paid at the first transaction from the manufacturer. This forms the base year data. ElectroniCast analysts then forecast the growth rates in component quantity use in each application, along with price trends, based on competitive, economic and technology forecast trends, and apply these to derive long term forecasts at the lowest application levels. The usage growth rate forecasts depend heavily on analysis of overall end user trends toward optical communication equipment usage and economic payback.

Cross-Correlation Increases Accuracy      The quantities of fiber optic fusion splice devices/equipment, fiber cable, connectors, transceivers, transport terminals, optical add/drop MUX, photonic switches and other products used in a particular application are interrelated. Since ElectroniCast conducts annual analysis and forecast updates in each fiber optic related product field, accurate current quantity estimates in each application are part of this corporate database. These quantities are cross-correlated as a “sanity check.”

ElectroniCast, each year since 1985, has conducted extensive research and updated our multiple-client forecasts of each fiber optic component category. As technology and applications have advanced, the number of component subsets covered by the forecasts has expanded impressively.

About ElectroniCast

ElectroniCast, founded in 1981, specializes in forecasting technology and global market trends in fiber optics communication components and devices, as well providing market data on light emitting diodes used in lighting.

As an independent consultancy we offer multi-client and custom market research studies to the world's leading companies based on comprehensive, in- depth analysis of quantitative and qualitative factors. This includes technology forecasting, markets and applications forecasting, strategic planning, competitive analysis, customer-satisfaction surveys and marketing/sales consultation. ElectroniCast, founded as a technology-based independent consulting firm, meets the information needs of the investment community, industry planners and related suppliers.

Proprietary Statement

All data and other information contained in this data base are proprietary to ElectroniCast and may not be distributed or provided in either original or reproduced form to anyone outside the client's internal employee organization, without prior written permission of ElectroniCast.

ElectroniCast, in addition to multiple-client programs, conducts proprietary custom studies for single clients in all areas of management planning and interest.  Other independent consultants, therefore, are considered directly competitive.  ElectroniCast proprietary information may not be provided to such consultants without written permission from ElectroniCast Consultants.

One-Fee Policy

All employees of the client company/organization may use this report, worldwide at the consultant service subscription fee shown in the front pages of this announcement.