Free Space Optics (FSO) Market Forecasts to 2030 - Global Analysis By Component (Modulator & Demodulator, Receiver and Other Components), Platform (Airborne Platform, Satellite Platform, Terrestrial Platform and Other Platforms), Range Type, Application, End User and By Geography
Estimated Year Value (2023)
US $1.67 BN
Projected Year Value (2030)
US $12.49 BN
CAGR (2023 - 2030)
North America, Europe, Asia Pacific, South America, and Middle East & Africa
US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa
Highest Growing Market
According to Stratistics MRC, the Global Free Space Optics (FSO) Market is accounted for $1.67 billion in 2023 and is expected to reach $12.49 billion by 2030 growing at a CAGR of 33.3% during the forecast period. FSO, also known as optical wireless or free space photonics, is a wireless data transmission technology used in computer networking and telecommunication. The sector is being driven by the need for high bandwidth and the increasing usage of free optics in military applications. The FSO communication channel is used for a variety of services, including outside wireless access, storage area network (SAN), last-mile access, bridging WAN access, and military access.
Increased demand for last-mile connectivity
For voice and data communication, free space optics (FSO) technology can be an attractive alternative to conventional RF systems. The demand for high bandwidth in current communication networks is expanding rapidly. High data rates necessitate a large spectrum; thus, FSO technology is gaining prominence. Last-mile access options are constantly expanding, particularly for businesses seeking to balance value, flexibility, and risk. As a result, the demand for last-mile connections is expanding. FSO is an innovative new access technology in which optical transceivers send laser beams straight through the atmosphere to build point-to-point high-speed communications networks.
High cost and environmental disruption
The high installation cost, as well as environmental disruption or atmospheric attention such as fog and heavy rains, would impair signal quality, thus impeding market expansion. However, laser tracking devices, multi-beam, multi-path architecture, and hybrid dual-mode RF technology will help to mitigate the impacts of air attenuation, resulting in moderate growth in the FSO industry. The lack of devices with higher photon efficiency and a high data rate is hampering the sector's growth.
Growing adoption of FSO technology in military applications
The demand for bandwidth on the battlefield has risen substantially over the last two decades as communication between subordinates and higher commanders has changed from radio and conversation to email and chat messages. Furthermore, data-rich multimedia content such as high-resolution images, video files, chat, and PowerPoint briefings is being provided at all levels of command. In an extremely overwhelmed RF operating environment, military communications require the highest level of broadband security. FSO's security and bandwidth make it a tempting option for military communications. A secure link is also required for data transfer in military communications.
Line of sight
Before deploying the setup for free-space optical communication between two places, the line of sight between the two must be clear of any impediments, such as trees or buildings. Scintillation can also be produced by atmospheric turbulence, which can increase the bit error rate. These are some of the reasons restraining the growth of the Global Free Space Optics (FSO) Market.
COVID-19 had a considerable impact on the global free-space optics sector. One of the businesses that is experiencing difficulties is the telecommunications industry. The pandemic will almost certainly cause a delay in the introduction of FSO technology, which will harm all parties involved. Companies are also adjusting their portfolio composition, investing in capital spending, R&D initiatives, mergers and acquisitions, and other development tactics in response to market shifts and other crucial challenges.
The healthcare segment is expected to be the largest during the forecast period
Because of the increasing demand for high-speed, secure, and reliable data communications in healthcare settings, the healthcare segment is likely to dominate the market throughout the forecast period. FSO can be used to connect medical devices to hospital networks, such as MRI scanners and X-ray machines. This enables doctors and nurses to access patient data in real time, thereby improving care quality. FSO can also be used to connect hospitals, which can increase patient care efficiency.
The transmitter segment is expected to have the highest CAGR during the forecast period
Transmitter segment is expected to hold lucrative growth during the projection period. FSO (Free Space Optics) that was developed utilizing standard optical transmitters and receivers. Lasers are used for data transmission in modern technology, which uses the same basic infrastructure as fiber optic lines. Additionally, when compared to other high-tech wireless technologies such as WiGig (802.11ad) or LTE-U/LAA (Long Term Evolution), it is less expensive.
Region with largest share:
Because of the growing use of free space optics (FSO) in 3G and 4G networks, as well as cloud computing's convenient and simple deployment mode, Asia Pacific region registered the largest share of the market over the extrapolated period. Furthermore, the market in the region is expanding due to the several benefits it offers, such as inexpensive infrastructure costs, rapid broadband availability, high data transmission speeds, and increased connections. Moreover, creative product development, as well as corporations and governments accepting FSOs for temperature measuring applications, will drive growth potential in the free space optics market in this region.
Region with highest CAGR:
Asia Pacific region commanded the highest CAGR throughout the estimated period of time. The sector will grow as smartphones gain popularity and the number of satellites employed in satellite communication applications increases. Additionally, government measures aimed at supporting the seamless implementation of IoT in many industry verticals would accelerate the global deployment of FSO systems.
Key players in the market
Some of the key players in Free Space Optics (FSO) market include Anova Financial Networks, SONA Networks, PHOTONICS, A CACI Company , L3Harris Technologies, Inc, Plaintree Systems Inc., AIRLINX Communications, Inc, Mostcom JSC, Collinear Networks, Trimble Hungary Kft and Cailabs.
In May 2022, Mitsubishi Electric Corporation announced that it had developed the world’s first laser communication terminal that integrated spatial laser acquisition and space optical communication in the photodetector. It determines the orientation of received beams in the 1.5-m band, which is used for terrestrial optical fiber communications and other applications.
In September 2021, Carillon Technologies bagged a US$ 6.4 Mn contract from the Defense Advanced Research Projects Agency (DARPA) to prototype next-generation satellite-to-satellite communication systems derived from cutting-edge commercial Holographic Optical Beam Steering (HOBS) technology.
• Modulator and Demodulator
• Other Components
• Airborne Platform
• Satellite Platform
• Terrestrial Platform
• Other Platforms
Range Types Covered:
• Disaster Recovery
• Other Applications
End Users Covered:
• Storage Area Network
• Data Transmission
• Mobile Backhaul
• Enterprise Connectivity
• Other End Users
• North America
o Rest of Europe
• Asia Pacific
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o South Africa
o Rest of Middle East & Africa
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- Market share assessments for the regional and country-level segments
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Table of Contents
1 Executive Summary
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
3 Market Trend Analysis
3.6 Application Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Free Space Optics (FSO) Market, By Component
5.2 Modulator and Demodulator
5.5 Other Components
6 Global Free Space Optics (FSO) Market, By Platform
6.2 Airborne Platform
6.3 Satellite Platform
6.4 Terrestrial Platform
6.5 Other Platforms
7 Global Free Space Optics (FSO) Market, By Range Type
8 Global Free Space Optics (FSO) Market, By Application
8.5 Disaster Recovery
8.9 Other Applications
9 Global Free Space Optics (FSO) Market, By End User
9.2 Storage Area Network
9.3 Data Transmission
9.4 Mobile Backhaul
9.5 Enterprise Connectivity
9.7 Other End Users
10 Global Free Space Optics (FSO) Market, By Geography
10.2 North America
10.3.6 Rest of Europe
10.4 Asia Pacific
10.4.5 New Zealand
10.4.6 South Korea
10.4.7 Rest of Asia Pacific
10.5 South America
10.5.4 Rest of South America
10.6 Middle East & Africa
10.6.1 Saudi Arabia
10.6.4 South Africa
10.6.5 Rest of Middle East & Africa
11 Key Developments
11.1 Agreements, Partnerships, Collaborations and Joint Ventures
11.2 Acquisitions & Mergers
11.3 New Product Launch
11.5 Other Key Strategies
12 Company Profiling
12.1 Anova Financial Networks
12.2 fSONA Networks
12.3 PHOTONICS, A CACI Company
12.4 L3Harris Technologies, Inc
12.5 Plaintree Systems Inc.
12.6 AIRLINX Communications, Inc
12.7 Mostcom JSC
12.8 Collinear Networks
12.9 Trimble Hungary Kft
List of Tables
1 Global Free Space Optics (FSO) Market Outlook, By Region (2021-2030) ($MN)
2 Global Free Space Optics (FSO) Market Outlook, By Component (2021-2030) ($MN)
3 Global Free Space Optics (FSO) Market Outlook, By Modulator and Demodulator (2021-2030) ($MN)
4 Global Free Space Optics (FSO) Market Outlook, By Receiver (2021-2030) ($MN)
5 Global Free Space Optics (FSO) Market Outlook, By Transmitter (2021-2030) ($MN)
6 Global Free Space Optics (FSO) Market Outlook, By Other Components (2021-2030) ($MN)
7 Global Free Space Optics (FSO) Market Outlook, By Platform (2021-2030) ($MN)
8 Global Free Space Optics (FSO) Market Outlook, By Airborne Platform (2021-2030) ($MN)
9 Global Free Space Optics (FSO) Market Outlook, By Satellite Platform (2021-2030) ($MN)
10 Global Free Space Optics (FSO) Market Outlook, By Terrestrial Platform (2021-2030) ($MN)
11 Global Free Space Optics (FSO) Market Outlook, By Other Platforms (2021-2030) ($MN)
12 Global Free Space Optics (FSO) Market Outlook, By Range Type (2021-2030) ($MN)
13 Global Free Space Optics (FSO) Market Outlook, By Long-Range (2021-2030) ($MN)
14 Global Free Space Optics (FSO) Market Outlook, By Medium-Range (2021-2030) ($MN)
15 Global Free Space Optics (FSO) Market Outlook, By Short-Range (2021-2030) ($MN)
16 Global Free Space Optics (FSO) Market Outlook, By Application (2021-2030) ($MN)
17 Global Free Space Optics (FSO) Market Outlook, By Security (2021-2030) ($MN)
18 Global Free Space Optics (FSO) Market Outlook, By Healthcare (2021-2030) ($MN)
19 Global Free Space Optics (FSO) Market Outlook, By Defense (2021-2030) ($MN)
20 Global Free Space Optics (FSO) Market Outlook, By Disaster Recovery (2021-2030) ($MN)
21 Global Free Space Optics (FSO) Market Outlook, By Enterprise (2021-2030) ($MN)
22 Global Free Space Optics (FSO) Market Outlook, By Military (2021-2030) ($MN)
23 Global Free Space Optics (FSO) Market Outlook, By Government (2021-2030) ($MN)
24 Global Free Space Optics (FSO) Market Outlook, By Other Applications (2021-2030) ($MN)
25 Global Free Space Optics (FSO) Market Outlook, By End User (2021-2030) ($MN)
26 Global Free Space Optics (FSO) Market Outlook, By Storage Area Network (2021-2030) ($MN)
27 Global Free Space Optics (FSO) Market Outlook, By Data Transmission (2021-2030) ($MN)
28 Global Free Space Optics (FSO) Market Outlook, By Mobile Backhaul (2021-2030) ($MN)
29 Global Free Space Optics (FSO) Market Outlook, By Enterprise Connectivity (2021-2030) ($MN)
30 Global Free Space Optics (FSO) Market Outlook, By Satellite (2021-2030) ($MN)
31 Global Free Space Optics (FSO) Market Outlook, By Other End Users (2021-2030) ($MN)
Note: Tables for North America, Europe, Asia Pacific, South America, and Middle East & Africa regions are also represented in the same manner as above.
List of Figures
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