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Friday, March 20, 2015

An optical fiber is a flexible, transparent fiber made of extruded glass (silica) or plastic, slightly thicker than a human hair. It can function as a waveguide, or “light pipe”, to transmit light between the two ends of the fiber. The field of applied science and engineering concerned with the design and application of optical fibers is known as fiber optics.

In India, the demand for optical fiber cables is not limited to the telecom sector. Optical fiber cables have been consumed by other sectors such as power, railways, and oil & gas. Communication sectors in these industries have specific connectivity requirements. For instance, fiber optics for oil and gas serve as links for data, control and for sensing of various attributes. Indian Railways use optical fiber cables, for signaling and tracking. Electricity departments use optical fiber cables for monitoring and control purpose.

Future Outlook

The OFC market is set to grow with the implementation of National Optical Fibre Network (NOFN), which aims to increase internet usage and improve connectivity in suburban and rural areas. Continuing expansion of existing networks by Railways and Defence will also help fuel the demand, apart from private players who want to build project with OFC as key component.


The fiber optics market is expected to grow at a CAGR of 5.1% between 2014 and 2019 to reach a value of $3.0 billion. The demand is increasing and driven by investments in new information technology and telecommunication sectors, upcoming developments and projects in the U.S., China, India, Brazil, and Western and Eastern European countries.

Research has established that OFC would beat competing technologies (such as copper and microwave) in the long term.

Optical Fibre Cables

Demand :  Past & Future

Year              mn kms

2000-01           1.65

2001-02           1.45

2002-03           1.25

2003-04           1.33

2004-05           1.42

2005-06           1.52

2006-07           1.63

2007-08           1.75

2008-09           1.88

2009-10           2.02

2010-11           2.18

2011-12           2.83

2012-13           2.90

2013-14           2.95

2014-15           3.02

2019-20           3.36

Strategic Alliances

Company                             Collaboration

Birla Ericsson                      Ericsson Cables, Sweden

TN Telecom                        Fujikura, Japan

Finolex Cables                    AT&T/Lucent Technologies, USA

Sterlite Optical                    Nokia, Finland

Aksh Optifibres                  Shin-Etsu Chemicals, Japan

Leading  Players

Birla Ericsson Optical

TN Telecom

Sterlite Optical

Finolex Cables

Sudarshan Telecom

RPG Cables

Hindustan Futuristic

Aksh Optifibre

Hindustan Cables

Micro Engeeners

Market Structure

Market Segmentation

Segment                                     Share (%)

Telecommunication                       68

Power Sector                                 13

Railways                                       10

Defence                                           3

Others                                             6

Source: NPCS Team

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