The FSO Market Is Expected to Grow from USD 116.7 Million in 2015 to USD 940.2 Million by 2020

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Dec 09, 2015, 04:10 ET

DUBLIN, Dec. 09, 2015 /PRNewswire/ --

Research and Markets (http://www.researchandmarkets.com/research/89xtwr/free_space_optics) has announced the addition of the "Free Space Optics (FSO) and Visible Light Communication (VLC) Market by Component, Application, and by Geography - Global forecast to 2020" report to their offering.

The free space optics market is expected to grow from USD 116.7 Million in 2015 to USD 940.2 Million by 2020, at a CAGR of 51.8% between 2015 and 2020. The VLC market is expected to grow from USD 327.8 Million in 2015 to USD 8.50 billion by 2020, at a CAGR of 91.8% between 2015 and 2020.

The factors driving the FSO market are last mile connectivity, license-free, and alternative solution to overburdened RF technology for outdoor networking. On the other hand, the growth of the VLC market is driven by factors such as faster and safer data transfer than other competing technologies, RF spectrum bandwidth crunch, no bandwidth limitation, less energy consumption, and greener, cleaner, and safer technology.

Of all the major applications of FSO Market, mobile backhaul and enterprise connectivity applications were the early adopters of the FSO technology and are also driving the free space optics market currently. The healthcare application is expected to be the fastest-growing application in the FSO market during the forecast period, followed by the disaster recovery application. This is because FSO can be deployed in the healthcare application where wireless communication through radio waves is not allowed due to potential health hazards.

At present, only one-way communication is possible with the help of VLC, which requires the installation of LED and installation of some applications on phones and tablets, and a cloud server to maintain the storage platform. However, the requirement of other hardware components such as microcontroller and photodetectors is very low in one-way communication applications. With the advent of two-way communication by the end of 2020, the market share of the photo detector segment, which includes photodiodes and image sensors, is expected to grow very rapidly.

The APAC market is estimated to be the fastest-growing region in both the FSO and VLC market between 2015 and 2020. Increasing manufacturing facilities, advanced infrastructure, and the growing Computer-Aided Design (CAD) industry are the factors driving the FSO market in APAC. Owing to the recent developments and increased expenditure on VLC-related R&D activities, Asia-Pacific is expected to be the fastest-growing market for VLC.

Conversely, factors inhibiting the market growth are the degradation of signals because of environmental interference, which ultimately causes reliability issues due to fading of signals during propagation and high installation cost. Similarly, factors such as dominance of competing technologies, short range, and requirement of direct LOS are major barriers inhibiting the growth of this market.

Key Topics Covered:

1 Introduction

2 Research Methodology

3 Executive Summary

4 Premium Insights

5 Market Overview

6 Industry Trends

7 Free Space Optics Market

8 Visible Light Communication Market

9 Competitive Landscape

10 Company Profiles