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Free space optics is an optical communication technology, which is responsible for transmitting light beams in free space for broadband communications. This optical communication technology offers various advantages including, high-speed data transmission rate, installation, and protected data transfer. The technology is utilized in deep-space probes, satellite links, for aircraft communication as well as for communication in UAVs and remote areas.

Proliferation of internet usage is one of the major factors driving growth of the global market

Major factors driving growth of the global free space optics market is, increasing internet traffic. Factors such as utilization of high-bandwidth applications, expanding online video content, and rising number of mobile internet users will lead to rise in the global IP traffic during the forecast period. Adoption of smartphones is increasing, which is leading to increasing mobile advertising, including SMS & MMS advertising, mobile web, mobile video & television, and several online advertising channels; and increasing demand for on-demand services such as videos, online messaging applications, video chat, and voice calls, at anytime and anywhere. These are powerful tools for effective real-time communication. Hence, increasing demand for real-time communication will proportionately increase demand for free space optics communication. For instance, according to Coherent Market Insights’ analysis, as of 2017, over 53% of internet traffic was generated by mobile, traffic which is increased from 41% in 2016.

Moreover, development of advanced wireless technologies, which includes Z-Wave and ZigBee, has further increased the internet traffic as they are responsible for providing easy connectivity to a wide range of devices, in order to offer faster data transfer and better bandwidth with lesser chances of data loss. These are few major factors driving the global market growth.

Global Free Space Optics Communication Market: Restraint

Major factor expected to hinder global market growth is degradation of signals, due to environmental interference. Free space optics communication can be interrupted due to fog and atmospheric turbulence. Occurrence of fog can hamper the characteristics of the light wave being transmitted by absorption, scattering, and reflection of the light wave. Atmospheric turbulence can cause sparkling, which can further increase the bit-error rate. These are some factors restraining growth of these free space optics communication market.

Global Free Space Optics Communication Market: Regional Insights

The global free space optics communication market is segmented on the basis of regions into North America, Europe, Asia Pacific, Latin America, Middle East, and Africa. The market in Asia Pacific is expected to exhibit the highest CAGR during the forecast period. This growth is attributed to increasing number of internet users in this region along with growing 5G pilot projects in the region. According to Coherent Market Insights’ analysis, in 2017, Asia Pacific accounted for over 50% of internet users in the world, of which China accounted for the largest share in the regional market, accounting for around 26% share of global internet users. This in turn, is expected to boost adoption of better wireless infrastructure. For instance, China Telecom Corporation Ltd. established a new 5G base station in Lanzhou, in December 2017, to expand 5G pilot projects in China. Moreover, government initiative plays a major role for growth of the 5G infrastructure in Asia Pacific region. For instance, China government is expected initiate commercial rollouts by 2020. With 3,400–3,600 MHz band, the country’s first trials will be conducted in 2020. The 3,300–3,400 MHz, 4,400–4500 MHz, and 4,800–4,990 MHz bands are also under consideration. For high internet speeds, China government has plans on using spectrum around 25 gigahertz and 40 gigahertz frequencies. This in turn, is expected to boost growth of regional market over the forecast period.

Global Free Space Optics Communication Market: Competitive Background

Major players operating in the free space optics communication market are Koninklijke Philips N.V., General Electric Co., Bytelight, Inc., Panasonic Corp., Purelifi Ltd., LVX System, Oledcomm, Lightbee Corp., Outstanding Technology Corp., Ibsentelecom Ltd., and Supreme Architecture Inc.

Global Free Space Optics Communication Market: Taxonomy

On the basis of components:

  • Transmitters
  • Receivers
  • Modulators
  • Demodulators
  • Encoders & Decoders
  • Others

On basis of application:

  • Mobile Backhaul
  • Enterprise Connectivity
  • Disaster Recovery
  • Defense
  • Satellite
  • Healthcare
  • Security
  • Engineering and Design
  • Others

On basis of region:

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East
  • Africa

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users