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Insight: Significant growth in FTTH market foreseen till '25

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MUMBAI: Fiber to the home is a communication technology which delivers the communication signal over optical fiber directly to the home from the operator’s switching equipment. Fiber to the home is replacing traditional copper infrastructures such as coaxial cables and telephone wires. At present, Fiber to the home market is in nascent stage and offers enormous advancements in bandwidth to the consumers which enables fast access to videos, voice, data and internet services. Fiber to the home technology offers high speed of network at affordable prices. Fiber to the home provides support to applications such as tele-health, community based security, social applications, art & education applications, mobility, home automation, video conferencing, online storage, property management etc.

Fiber To The Home Market Segmentation

Fiber to the home market can be segmented on the basis of type into Homes Passed and Homes Connected. At present, Connected Homes segment has highest market share in global Fiber to the home market. On the basis of Deployment Provider Type, the global Fiber to the home market can be segmented into Incumbent Local Exchange Carrier (ILEC), Competitive Local Exchange Carrier (CLEC), Municipality/ Publicly Owned Systems, Developer/ Integrator, Multi-system Operator (MSO) Cable and Electric Co-ops. In 2014, Incumbent Local Exchange Carrier segment represents highest market share in global fiber to the home market. Fiber to the home has many applications such as Internet Video, VoIP, File Sharing, Online Gaming, Web/ Data, Video Conferencing etc. The end users of Fiber to the home market can be classified into urban area, sub-urban area and rural area. At present, urban area segment has highest share contribution in global fiber to the home market and sub-urban area segment is expected to reflect highest growth rate over the forecast period.

Fiber to the home Market: Region-wise Outlook

The global Fiber to the home market is expected to witness a healthy CAGR through 2025 owing to increasing adoption of fiber to the home among telecom carriers across the globe, an FMI report stated. Regionally, the Fiber to the home market can be segmented into North America, Latin America, Western Europe, Eastern Europe, Asia-Pacific excluding Japan (APEJ), Japan and Middle East & Africa (MEA). At present, among all the regions, North America followed by Japan is expected to account for the highest share in global smart manufacturing market. Latin America and MEA regions are reflecting slow penetration as compared to other regions.

Fiber to the home Market: Drivers

Increasing demand of high speed network at home for accessing online entertainment, smart systems and online books, apps and music, supplemented by technological advancement and growing penetration of cloud computing, smart grids, e-learning, e-health and e-governance service across the word are expected to drive the Fiber to the home market growth between 2015 and 2025. Furthermore, FTTH Providers are continuously supporting Greenfield activity by replacing old copper wires with fiber. In addition, more number of telecom carriers have started adapting fiber to the home to offer their customers with high bandwidth to access data. However, high capital investment, stringent regulatory risks and geographic limitations are restricting the growth of global Fiber to the home market, the FMI report stated.

Fiber to the home Market: Key Players

The key players operating in the global Fiber to the home market includes 3M Communication Technologies, ADTRAN Inc., Huawei Technologies Co. Ltd, DASAN Networks Inc., FiberHome Networks Co. Ltd., Enablence Technologies Inc., ZTE Corporation, Mitsubishi Electric Corp., Fujikura Ltd. and Superior Essex Inc.. Major players in the market follow the strategy of introducing innovative and cost effective solution to buy out competition. In addition, strategic partnership, collaborations and joint ventures are the other major strategies followed by the Fiber to the home solution provider to outperform competitors, the FMI report added.

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