Los Angeles, CA (PRWEB) June 19, 2012
The Fiber Optic Cable Manufacturing industry experienced a few broken connections over the past five years, with revenue anticipated to fall at an average of 1.8% per year to $1.9 billion in the five years to 2012. This decline was largely due to recession-related cutbacks in infrastructure spending, which resulted in a 28.7% decline in revenue in 2009. On the whole, though, the industry has benefited from a rise in demand for fiber optic networks and fiber optic cable. According to IBISWorld industry analyst Nima Samadi, “Consumers have increasingly demanded high-speed internet in their homes and on mobile devices, underpinning the long-term growth trend.” As a result, wireless carriers and cable providers are demanding fiber optic cable at increasing rates. The ramp up in fiber optic cable networks has expanded the speed and size of wireless carrier and cable provider data networks, providing higher-speed data transmission and larger-volume data transfers. Despite the recession, the industry was able to rebound quickly as the American Recovery and Reinvestment Act (ARRA) awarded government contracts and set forth incentives for broadband infrastructure development across the United States.
Despite strong domestic demand for fiber optic cable, manufacturers have had to contend with competition from foreign firms. Over the five years to 2012, imports have increased. The majority of imports come from low-wage countries such as Mexico and China. “Fortunately exports have also grown aggressively over the past five years due to a weak US dollar and growing demand for fiber optic cable in emerging economies,” says Samadi. The Fiber Optic Cable Manufacturing industry has a medium-low level of concentration. An increase in major company market share indicates that the industry is becoming more concentrated despite its growth phase. At the same time, the industry is becoming increasingly globalized. Major companies including Optical Fiber Solutions, Corning Incorporated and AFL Telecommunications have operations in the United States and abroad. Smaller firms typically operate on a local or regional basis and lack sufficient resources to expand abroad or invest in product innovation.
The next five years will bring strong revenue growth to the industry. Consumer demand for high-speed internet on mobile devices will likely accelerate over the period, resulting in the widespread upgrade of wireless network services to compete for consumers’ dollars. Manufacturers that have existing relationships with wireless carriers (or installers that contract with wireless carriers) will be in the strongest position going forward. For more information, visit IBISWorld’s Fiber Optic Cable Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures optical fiber cables. These cables are usually silica or plastic based, with silica fiber optic cables extending long distances. Communications and telecommunications providers use fiber optic cables to transmit data. Optical fiber cables are gaining increasing popularity because of their transfer speed and immunity to electromagnetic interference
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.