Affordability of Free-Space Optical Communications Technology is Fueling Demand; Europe Holds the Highest Market Share

Share Article

According to the new report from BCC Research, the global free–space optical communications market was valued at $41.9 million in 2013 and $59.2 million in 2014. This market is expected to reach $501.1 million in 2019, at a compound annual growth rate (CAGR) of 53.3% from 2014 through 2019.

Optical Communications
The global free–space optical communications market is expected to reach $501.1 million in 2019.

Wellesley, Mass., April 22, 2015 – BCC Research ( reveals in its new report on free-space optical communications, the ability of this technology to provide similar bandwidth and transmission capabilities as optical fiber network is one of the major factors fueling the demand for free-space optical communication.

The free-space optical communications market is expected to surge from $41.9 million in 2013 to $501.1 million in 2019, at a compound annual growth rate (CAGR) of 53.3% from 2014 through 2019. Data transmission, along with disaster recovery, commanded a market share of more than 40% in the overall free-space optical communications industry in 2014.

Of all the free-space optical communications, data transmission dominated the overall 2014 market with a share of 23.3%, closely followed by disaster recovery with a share of 20.1%. The healthcare facilities sector is anticipated to swell at the highest CAGR of 54% between 2014 and 2019. Europe holds the largest market share in the global free-space optical communications market, followed by North America, Asia-Pacific, and the rest of the world.

Free-space optical communication technology is an extension of the metro optical network core. A free-space optics (FSO) system uses infrared light instead of radio waves for data transmission. This technology offers low cost transmission as against radio frequency (RF) communication technology and fiber optics communication.

Copper wire technology is also used in certain cases but does not satisfy bandwidth requirements. Owing to these factors, the demand for free-space optical communication is predicted to gain rapidly in the forecast period. Rapid industrialization and the rising demand for high speed communication by business utilities is also expected to boost the demand for free-space optical communication. In the coming years technologies such as cable modems and Digital Subscriber Line (DSL) are expected to be replaced with free-space optical fiber communication technology.

“The high capacity of free-space optical communication coupled with affordable prices will elude end-users in the coming years and fuel its demand over the forecast period,” says BCC Research analyst Sinha G. Gaurav. “Free-space optical communication technology is affected by atmospheric turbulences and temperature changes. This factor may restrain its demand, but technological developments will minimize this effect over the coming years.”

Free-Space Optical Communications Technology: Global Markets provides factors currently driving and restraining the growth of the market, as well as factors impacting the future of the industry. Market forecasts are provided through 2019.

Editors and reporters who wish to speak with the analyst should contact Steven Cumming at

About BCC Research
BCC Research publishes market research reports that make organizations worldwide more profitable with intelligence that drives smart business decisions. These reports cover today's major industrial and technology sectors, including emerging markets. For more than 40 years we've helped customers identify new market opportunities with accurate and reliable data and insight, including market sizing, forecasting, industry overviews, and identification of significant trends and key market participants. We partner with analysts who are experts in specific areas of industry and technology, providing unbiased measurements and assessments of global markets. Recently selected as the world’s greatest market research company, BCC Research is a unit of Eli Global, LLC. Visit our website at Contact us: (+1) 781-489-7301 (U.S. Eastern Time), or email

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Steven Cumming
BCC Research
+1 (781) 489-7301 Ext: 632
Email >
Follow >
Visit website