The global fiber optics sensor market was valued at US$2.394 billion in 2019 and is expected to grow at a CAGR of 9.24% over the forecast period to reach a total market size of US$4.444 billion by 2026.
A fibre optic sensor detects changes in temperature, strain, and other parameters by utilizing the physical properties of light. With the growing demand for high-end industrial applications and sophisticated functions, the global market for fiber optic sensors is on the rise. Extreme temperature conditions are well tolerated by fiber optic sensors. Due to this, fibre optic sensors are expected to become increasingly popular, especially for uses where electrical sensors don't perform well in extreme environments. Some examples of applications with extreme temperature conditions are the manufacturing and oil and gas sectors. Fiber optic sensors are being driven by the increases in telecommunications and civil engineering investments, as well as smart manufacturing technologies around the world. By 2025, the International Energy Agency (IEA) expects that global oil demand will grow by about 1 million barrels per day (BPD) annually, up from 97 million BPD in 2018.
In the UAE, domestic natural gas production plants are to be expanded. As part of the “Jebel Ali Project”, Dubai and Abu Dhabi aim to develop a joint gas reservoir to support the UAE economy and ensure sustainable growth. A refining expansion from 140,000 to 210,000 barrels per day is planned at Dubai and the Emirates National Oil Company (ENOC), as well as expanded production of jet fuel and gasoline, and diesel. In February 2019, ADNOC announced it had committed $4 billion to US investment firms BlackRock and KKR for the construction of a crude oil pipeline in the UAE.
Oil and gas demand has been increasing at an exponential rate, resulting in massive expansion and investments so that the old infrastructure can be changed. Regardless of the temperature and pressure, fiber optics sensors provide excellent optical performance. Globally, countries are continuously investing in their gas pipeline infrastructure, which is expected to boost the market for fiber optic sensors. The state-owned firms in China, such as CNPC and China National Offshore Oil Corporation, have plans to extract more natural gas at local fields, which drives pipeline demand further. An agreement between Russia and Pakistan calls for a USD 2 billion gas pipeline. India and Russia also signed an agreement regarding natural gas exports with a value of USD 40 billion. In addition to modifying the gas pipeline infrastructure, India is upgrading its power infrastructure. The Indian government announced a pipeline project for Jammu and Kashmir in the annual budget for 2021. According to the Ministry of Petroleum and Natural Gas of India, the Petroleum and Natural Gas Regulatory Board (PNGRB) has authorized approximately 33,764 km of natural gas pipeline for the purpose of creating a national gas grid and increasing natural gas availability across India. In the near future, these large-scale projects are likely to drive growth in the pipeline industry, which will, in turn, lead to significant growth in the fiber optic sensor market.
The other key market driver is the increasing demand for civil engineering services. In this service, fiber optic sensors are highly necessary. For the complex tasks involved in civil engineering verticals, the fiber optic sensor is an ideal solution. In the Asia Pacific, rapid urbanization, as well as increasing industrial manufacturing activities, are expected to drive market growth. 4.2 billion people - more than 55% of the global population - live in cities. (Source: UN). UAE is well known for its world-class infrastructure as well as its thriving construction industry. As part of the UAE's fiscal year 2020 budget, a zero deficit federal budget of 61.35 billion AED has been approved, 14.00% of which is dedicated to infrastructure and economic development. (Source: mof.gov). Such high-budget infrastructure projects are expected to drive the growth of the fiber optic sensor market.
The installation of this device is extremely complex. The system cannot function without a specialist. Growth is hampered by the complexity of fiber optic sensor installation. Since installing fiber optic systems takes a considerable amount of time, many audiences are hesitating to purchase them. Another major restraint of this market is the lack of awareness of fiber optic sensors. Customers are not aware of this device's exceptional features.
Covid 19 has a tremendous impact on many industries. In the gas and oil industries and civil construction, fiber optic sensors are widely used. Fibre Optic Sensor Market has suffered from the shutdown of these industries. The supply-demand chain has been disrupted by government restrictions on various industries. After restrictions were lifted, demand for fiber optic sensors has increased steadily.
In order to remain competitive, companies in the industry launch new products and pursue research and development heavily. As of June 2021, NEC Corporation began selling its "NEC Intelligent Optical Fibre Sensing Solutions," which enables Communications Service Providers (CSPs) and owners of optical fiber worldwide to use fibers as sensors. Schlumberger has introduced its Optiq Schlumberger fiber-optic solutions in August 2021, which can be applied to a wide range of energy-related applications and environments. Thales Ground Transportation Systems will lead a consortium that will research and prototype fiber-optic acoustic sensing (FOAS) in September 2021 for Network Rail, UK.
|Market size value in 2019||US$2.394 billion|
|Market size value in 2026||US$4.444 billion|
|Growth Rate||CAGR of 9.24% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Application, End-User Industry, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Opsens Solutions, Omron Corporation, Banner Engineers Corp., Hamamatsu Photonics K.K., Broadcom Inc., TE Connectivity, Panasonic Corporations, TAKENAKA ELECTRONIC INDUSTRIAL CO.,LTD, Specto Technology, Sick AG|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the fiber optics sensor market size by 2026?
A1. The global fiber optics sensor market is expected to reach a total market size of US$4.444 billion in 2026.
Q2. What is the size of the global fiber optics sensor market?
A2. Fiber Optics Sensor Market was valued at US$2.394 billion in 2019.
Q3. What are the growth prospects for the fiber optics sensor market?
A3. The fiber optics sensor market is expected to grow at a CAGR of 9.24% during the forecast period.
Q4. What factors are anticipated to drive the fiber optics sensor market growth?
A4. With the growing demand for high-end industrial applications and sophisticated functions, the global fiber optics sensor market is on the rise.
Q5. How is the global fiber optics sensor market segmented?
A5. The fiber optics sensor market has been segmented by type, application, end-user industry, and geography.
Banner Engineers Corp.
Hamamatsu Photonics K.K.
TAKENAKA ELECTRONIC INDUSTRIAL CO.,LTD
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