The fiber optic components market is expected to grow from USD 17.15 Billion in 2018 to USD 27.60 Billion by 2023, at a CAGR of 10% between 2018 and 2023. The growth of this market is propelled by the increasing deployment of data centers, growing internet penetration and data traffic, rising demand for bandwidth and reliability, and developments in the fiber optic components ecosystem through organic and inorganic growth strategies such as agreements, contracts, joint ventures, product launches and developments, acquisitions, and expansions.

Among all the types in the fiber optic components, the market for transceiver is expected to hold the largest share by 2023. Major factors driving the fiber optic components market for transceivers include the greater interconnect capability and high-speed data transmission. Moreover, the introduction and adoption of new applications such as wearable devices, IoT, and cloud computing to address the change in the needs of consumers. The increasing internet penetration and data traffic are leading to the rapid growth of data centers, along with the need for high-speed transmission networks.

Among various applications, the communications application accounted for the largest share of the overall fiber optic components market in 2017. The growth of this market can be attributed to the mass utilization of digital technologies and applications in telecommunications, data centers, and enterprises. Also, positive trends in broadband and big data management are also driving the growth of the communications application. With all this development in the communications application, the demand for fiber optic components would also rise.