Free Space Optics Communication Market Growth Analysis, Size, Future Forecast 2027



a year ago | 3 min read

Rising penetration of laser communication is anticipated to influence the global Free Space Optics Communication Market outlook through 2027. In the wake of an exponential rise in the number of smart devices, the need for high-speed connectivity has been mounting continually. As radio frequency (RF) and microwave links will be incapable of meeting the surging demands, FSO technology appears to be a silver bullet for the telecommunications industry. It presents itself as a futuristic solution because of its comparative affordability and high-speed connectivity.

A growing number of researchers are investigating the potential of nanometer and millimeter waves, in order to develop an alternative for RF-based wireless networks. The COVID-19 pandemic brought out how the Internet is vital for every sector, including communication, healthcare, and education industries. Internet security concerns are accelerating investments in the free space optics communication market.

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By 2027, the global free space optics communication market size will surpass $2 billion, as per the estimates of a research report by Global Market Insights Inc. Due to their exceptionally low consumption of power, higher security, and marginal latency, FSO systems are being adopted across the globe. With 5G mobile networks expanding across regions with lack of fiber connectivity, the massive IoT requirements are likely to fuel product uptake.

According to an interactive report published by the Australian Communications and Media Authority (ACMA), about 93% of Australians go online using mobile phones, which have become the most common device between January and June 2021, rising from 84% during 2017. Regional millennials are showing greater interest in smart TVs, laptops, smartphones, digital media player, as well as portable games since the beginning of the coronavirus pandemic.

DataProt, a company that gives cybersecurity advice and educates individuals about internet privacy issues, estimated that in 2021, there were more than 10 billion active smart/IoT devices worldwide. By 2030, this figure is slated to cross 25.4 billion, as per the estimates. Since an escalating number of businesses have been investing in IoT technologies, free space optics communication market share is likely to grow from the enterprise connectivity segment in Australia.

The changing landscape in Australian e-commerce is evident as more customers are buying goods and services online. ACMA data reveals that over 85% of Australians bought products or services from online platforms during 2021. The data consumption rate of the residents is spiraling constantly, fueling Australia FSO communication systems market size.

Powered by the recent government efforts towards strengthening national security through initiatives such as Draft Zero Trust Strategy, U.S. free space optics communication market share is projected to account for a significant revenue in the North American market by 2027.

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The U.S. National Security Agency for Department of Defense approved the security products offered by Yubico in collaboration with CACI International, a company that has been providing free space optics communication market systems to the U.S. government for over the last 20 years. The CACI team is expected to continue delivering high-performance free space optics solutions for space, air, and land environments over the upcoming years.

Major industry participants have been initiating collaborations, mergers, and acquisitions to expand their customer base. In December 2021, CACI announced that it has completed the acquisition of SA Photonics, Inc., a top company offering multi-domain photonics technologies for FSO communications.

The two companies are focusing on catering to diverse market needs ranging from the expanding low-earth-orbit (LEO) market to the high-end manned flight programs. Through the acquisition, CACI will have the resources to enhance its advance photonics engineering activities, at the same time proliferate manufacturing capabilities across the U.S., where it plans to add two new facilities in Florida and California.

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