Free Space Optic Communication Market Expected to Reach $4.8 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Free Space Optic Communication Market," The free space optic communication market size was valued at $347.54 million in 2021, and is estimated to reach $4.8 billion by 2031, growing at a CAGR of 31.3% from 2022 to 2031.

Free space optic communication is a wireless technology that uses beams of light to transmit data through the atmosphere. The FSO communication market has been gaining traction in recent years, driven by the increase in demand for high-speed data transmission and the need for secure communication channels. This technology is ideal for completing data transmission tasks in areas where physical connections are not feasible. Furthermore, FSO communication technology provides inter-satellite communications, satellite-to-ground communication, and a variety of other airborne applications.

The free space optic communication market growth is driven by the increase in demand for high-speed data transmission in military sector. Demand for bandwidth on the battlefield has been increasing significantly since the last two decades, as communication between subordinates and higher commands has shifted from radio and voice to email and chat messages. Furthermore, data-rich multimedia content such as high-definition pictures, video files, video, chat, and PowerPoint briefings are being sent at every level of the chain of command. Military communications need the highest level of broadband security in an extremely dense RF operating environment. Security qualities and bandwidth of FSO make it an attractive technology for military communications.

The technology is also being adopted for data transmission. Free space optical technology plays a vital role in data transmission as it uses lasers and LED to deliver high bandwidth connection to transfer data that include voice, video, and document over a light beam for telecommunication and computer networking. Furthermore, the technology in FSO communication allows the development of new types of components that are capable of transmitting data such as documents and videos.

On the other hand, according to the free space optic communication market analysis, the market is held back by the weakness of laser beams towards atmospheric interference such as fog, rain, and snow. the performance of FSO systems is limited by air conditions, which is one of the key challenges that these optical wireless communication links confront. Meanwhile, superior data transmission security is expected to boost the adoption of FSO communication in IT and telecommunication industry. The wireless communication system is currently available at a premium, and optical fiber systems are often expensive and difficult to install, while free-space optical communication (FSOC) systems are an attractive alternative for point-to-point telecommunications. This is driving the IT and telecommunication segment of the free space optic communication market share. Increase in development of private LTE networks, as well as the necessity for secured and high-speed optical communications, are projected to fuel market growth throughout the forecast period.

In terms of market segmentation by platform, the market was dominated by ground segment in 2021, whereas the space segment is expected to witness a higher growth rate during the forecast period. Free space laser communication also plays a vital role in establishing communication links between ground platforms, including buildings, towers, and other fixed structures, which acts as a major advantage for it. In terms of market segmentation by component, the market was dominated by the transceiver segment in 2021, whereas the receiver segment is expected to witness a higher growth rate during the forecast period. The performance of the transceiver is critical to the overall performance of the free space optic communication system. Thus, major players are investing heavily in developing advanced transceivers to gain a competitive advantage in the market. In terms of market segmentation by application, the market was dominated by mobile backhaul segment in 2021, whereas the defense segment is expected to witness a higher growth rate during the forecast period.

Free space optic communication can be used as a wireless backhaul solution for mobile networks. It provides a high-bandwidth, low-latency, and secure wireless connection, which makes it ideal for mobile backhaul applications. In terms of region, the market was dominated by North America in 2021, which is also expected to grow at a faster rate during the forecast period. North America is one of the major regions in the global free space optic communication market trends, in terms of revenue generation and market share. Key players operating in this region have been adopting various strategies to provide advanced solutions, which is expected to fuel market growth.

Key Findings of the Study

• Based on platform segmentation of the free space optic communication market share, the ground segment accounted-for major share of the free space optic communication industry in 2021, while the space segment is expected to witness faster growth during the forecast period.
• Based on component, the transceiver segment accounted-for higher share of the free space optic communication market in 2021, while the receiver segment is anticipated to increase faster during the forecast period.
• Based on application, the mobile backhaul segment dominated the free space optic communication market in 2021, while the defense segment is expected to expand at a faster rate during the forecast period.
• Based on region, North America accounted for the largest share of the global free space optic communication market in 2021, and it is also anticipated to grow faster during the forecast period.

The free space optic communication market players profiled in the report include EC System, FSONA Networks Corp., Axiom Optics, Wireless Excellence Limited, QinetiQ, ViaSat, Inc., Mostcom JSC, Mynaric, Collinear and Plaintree Systems Inc. Various strategies such as collaborations & partnerships, product launches, and acquisitions have been adopted by market players to expand their foothold in the digital multimeters market