Increasing investments in data center, 5G, smart cities boost OTDR prospects

While the global optical time domain reflectometer (OTDR) market is expected to post an incremental growth of USD $37.62 million during the period from 2019-2023, increasing investments in smart city projects will be one of the major drivers propelling the global market in upcoming years, according to a new research report by Technavio.

Per Technavio's analysis, concurrent increasing investments in data center will have a positive impact on the market and contribute to its growth significantly over the forecast period. The new research report also analyzes other important trends and market drivers that will affect market growth through 2023.

"A huge amount of data is generated owing to the development of smart cities, smart grids, and smart homes," observes the report's executive summary, which continues, "The requirement of data centers has increased in order to monitor and process this data. This has led to an increase in investments in data centers which will be one of the critical trends in the global OTDR market. During the deployment of data centers, multiple variations of cables such as unshielded twisted pair, coax, multi-mode or single-mode fibers, and hybrid active optical cables, are used," adds the researcher. "This increases the need for optical time domain reflectometers to test the optical fiber cables, which in turn, will boost market growth during the forecast period."

“Apart from the increasing investments in data center, the high demand for tier-2 certification standards and the rising expenditure on 4G/5G deployment are some other major factors that will boost market growth during the forecast period,” comments a senior analyst at Technavio.

The new market research report segments the global OTDR market by end-user (communication, cable TV, private enterprise network, and others) and geographical regions (Americas, APAC, and EMEA).

Per Technavio's analyis, the Americas region led in market share in 2018, followed by EMEA and APAC respectively. During the forecast period, the Americas region is expected to maintain its dominance over the global market. This is due to several factors such as the rising internet penetration increasing mobile data traffic, growing investments in 4G/5G network infrastructure, and increasing FTTH (fiber to the home) subscriber base in the region.

"Around the globe, countries are focusing on the development of smart cities to manage assets and resources efficiently," concludes the analyst. "Smart cities comprise public amenities and infrastructure connected through communication networks. Automobiles communicating with traffic lights or with the smartphones of pedestrians is an instance. This will require mobile networks such as 4G/5G, which can handle a massive amount of data. Moreover, a smart city will require extensive machine-type communication (MTC) applications. These applications use very low data rates but require extensive connectivity, which will necessitate the need for high-speed networks for faster data transmission and communication. Thus, the adoption of 4G/5G networks for smart city projects will rise significantly, which will subsequently increase the need for optical fibers. These factors will drive the demand for OTDRs, which will boost the global market growth during the forecast period."

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