Optical fiber market Beyond 2019

When the topic of 5G wireless comes up, your first thought likely isn’t about fiber networks running under the ground. If you’ve been on the sepculation about 5G network replacing  smart home installations free of splicing and connecting cable, think again. 5G isn’t going to replace wired internet anytime soon. The resulting growth in connections and network traffic will be unprecedented so the next few years will be critical for data center managers and operators to build infrastructure that can fulfill the demands on capacity and latency. Broadband is considered more secure for direct peer-to-peer file sharing and communications. Businesses have established secure Wi-Fi for local area network (LAN) integration. Convincing these users to switch to a cellular network could be a challenge.

 The global optical fiber market is growing strongly with one recent study published by Allied Market Research, suggesting a CAGR of 11.6% between 2018 and 2025. This would take the value from $3,477 million to $8,153 million. Chief among the factors underpinning this growth are the: widespread implementation of 5G, from 2020; an increase in the adoption of fiber to the home (FTTH) connectivity; and the emergence of internet of things (IoT). The International Telecommunications Union (ITU) estimates the market for IoT devices generating over $1.7 trillion by 2019.Considering their broadband, low-latency requirements, industry consensus is that 5G radio networks will use fiber as the pre fiber as the preferred technology for backhaul (typically connects base stations and the core wired network) and front-haul (the connection between remote radio heads at the cell site and the mobile network control backbone), wherever possible.With all this in mind, 5G does have the potential to reach rural locations before fiber does, which would mean homeowners and businesses could take advantage of smart devices and home automation.  This could take the pressure off of internet service providers to lay cable in rural areas.

For now the most suitable PON technology  remains the most suitable option for  5G backhaul is -PON2, as we all know that NG-PON2 can support four separate full-duplex 10-Gbps feeds. This is all that is required for 5G backhaul; each wavelength uses Ethernet to carry 5G packet information. Verizon has already selected this technology for its future 5G backhaul. Cisco, Nokia, Huawei, Calix, ADTRAN, Ericsson, and Nokia are all active participants in developing this technology for 5G backhaul.Given this it seems inevitable that 5G backhaul will bring new money to the optical networking business over the next decade. Furthermore, Ciena’s Brian Lavallée explains, 5G mobile networks will significantly affect both the wireless side (obviously!) and the wireline side of the global network infrastructure. In fact, 5G’s formidable network performance goals are heavily predicated on the availability of fiber, and lots of it, to cell sites. For the 5G connectivity, you will need to buy new devices that can accommodate it. Right now there are numerous tables, smartphones, TVs, PCs, printers and many others that use Wi-Fi. Even the latest technologies come with a built-in preference for Wi-Fi. See, no one is trying to replace fiber optic.