Free Space Optics Fso Market

Free Space Optics Fso Market

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

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Published: 2023 ID: SMRC23417

This report covers the impact of COVID-19 on this global market

Years Covered


Estimated Year Value (2023)

US $1.67 BN

Projected Year Value (2030)

US $12.49 BN

CAGR (2023 - 2030)


Regions Covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Countries Covered

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

Largest Market

Asia Pacific

Highest Growing Market

Asia Pacific

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.

Market Dynamics:


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 Impact:

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.

Key Developments:

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.

Components Covered:
• Modulator and Demodulator
• Receiver
• Transmitter
• Other Components

Platforms Covered:
• Airborne Platform
• Satellite Platform
• Terrestrial Platform
• Other Platforms

Range Types Covered:
• Long-Range
• Medium-Range
• Short-Range

Applications Covered:
• Security
• Healthcare
• Defense
• Disaster Recovery
• Enterprise
• Military
• Government
• Other Applications

End Users Covered:
• Storage Area Network
• Data Transmission
• Mobile Backhaul
• Enterprise Connectivity
• Satellite
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary

2 Preface
2.1 Abstract
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
2.5.3 Assumptions

3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
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
5.1 Introduction
5.2 Modulator and Demodulator
5.3 Receiver
5.4 Transmitter
5.5 Other Components

6 Global Free Space Optics (FSO) Market, By Platform
6.1 Introduction
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
7.1 Introduction
7.2 Long-Range
7.3 Medium-Range
7.4 Short-Range

8 Global Free Space Optics (FSO) Market, By Application
8.1 Introduction
8.2 Security
8.3 Healthcare
8.4 Defense
8.5 Disaster Recovery
8.6 Enterprise
8.7 Military
8.8 Government
8.9 Other Applications

9 Global Free Space Optics (FSO) Market, By End User
9.1 Introduction
9.2 Storage Area Network
9.3 Data Transmission
9.4 Mobile Backhaul
9.5 Enterprise Connectivity
9.6 Satellite
9.7 Other End Users

10 Global Free Space Optics (FSO) Market, By Geography
10.1 Introduction
10.2 North America
10.2.1 US
10.2.2 Canada
10.2.3 Mexico
10.3 Europe
10.3.1 Germany
10.3.2 UK
10.3.3 Italy
10.3.4 France
10.3.5 Spain
10.3.6 Rest of Europe
10.4 Asia Pacific
10.4.1 Japan
10.4.2 China
10.4.3 India
10.4.4 Australia
10.4.5 New Zealand
10.4.6 South Korea
10.4.7 Rest of Asia Pacific
10.5 South America
10.5.1 Argentina
10.5.2 Brazil
10.5.3 Chile
10.5.4 Rest of South America
10.6 Middle East & Africa
10.6.1 Saudi Arabia
10.6.2 UAE
10.6.3 Qatar
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
11.4 Expansions
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
12.10 Cailabs

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


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.

Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.

For more details about research methodology, kindly write to us at

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