Impact of COVID-19 on the Global Fiber Optic Cables Market
Fiber optic cable contains one or more optical cables that are used to carry light. It comprises plastic or glass threads of wires with the capacity to transfer data at high speeds. Telecommunication companies have widely adopted fiber optics cables due to their high data-volume carrying capacity. The COVID-19 outbreak has resulted in lockdowns being imposed in most countries, which, in turn, has shut down businesses and transportation activities to contain the spread of the virus. China is a major hub for global business operations as well as one of the largest countries in terms of Internet users. However, the disruptions caused by the COVID-19 pandemic across the world has severely impacted supply chain activities, which has led to interruptions in large-scale manufacturing. The COVID-19 epidemic has slowed down the global economy, which is expected to influence the demand for optical products in multiple countries. Besides, the effects of COVID-19 have halted the construction of FTTH networks in Western Europe, which is profoundly impacting the growth of the market.
The primary factor driving the growth of the market is the increasing demand for mobile data and the launch of 5G services. The deployment of 5G has significantly impacted optical-fiber requirements. However, the impact of the coronavirus on the deployment of 5G technology is relatively high, owing to the delays caused due to the pandemic. It is estimated that the possibility of a global recession in late 2020 or the Q1 of 2021 may limit the short-term availability of capital for the construction of the network infrastructure. Besides, the demand for high-quality audio, video, and data transmission is increasing rapidly, as most companies have allowed their employees to work from home, and most governments have initiated precautionary measures forcing people to stay at home, which has increased the demand for faster Internet connectivity. However, the delays in CAPEX intensive projects have slowed down the growth of the market. The ongoing need for the cable assemblies required for upgrading, operating, and maintaining the capacity of previously installed networks is expected to sustain the growth of the market.
The Asia-Pacific region held the largest market share and is expected to continue its domination over the forecast period owing to the increasing infrastructural development and industrialization, which has created opportunities for the growth of the fiber optic cables market in various regions. Post pandemic, the resumption of manufacturing facilities, and the deployment of 5G technology are expected to drive the growth of the market. However, the industry is expected to face various challenges due to the pandemic, such as the unavailability of the workforce and the global economic slowdown.