Fibre hardware worth six billion dollars

KMI forecasts that the market for single-mode fibre-optic interconnect hardware will expand to six billion dollars by 2005. Fuelling recent market growth is a 40% increase in cable installations and a near doubling of transmission equipment installations, says KMI Corporation in its new report US Fiberoptic Connector and Related Hardware Markets.

Annual growth for single-mode connectors is forecast to increase at a 45% compounded annual growth rate (CAGR) to 2005. Growth for multimode connectors in the U.S. will be 19% CAGR. Translated to market value, this growth should yield $2 billion in sales by 2005 for single- and multimode connectors.

US demand for single-mode connectors is expected to become equal to and exceed multimode by volume in the year 2000, while total market volume is expected to grow from 56 million units in 1998 to 414 million units by 2005. The unit prices of both types of connectors are dropping by 6% – 7% per year, a trend that is anticipated to continue to the year 2005.

Ceramic ferrule production and connector termination processes are currently bottlenecks in the market. In response, assembly companies are ramping up new lines and outsourcing fabrication to provide cable terminations quickly enough to meet customers’ demand.

KMI’s US Fiberoptic Connector and Related Hardware Markets report contains up-to-date data of value to manufacturers of connectors, cable assemblies, ferrules, panels, frames and related products.

KMI’s website is at www.kmicorp.com.