Global Fusion Splicer Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Fusion Splicer Market Analysis

Fusion splicing is the gesture of joining two optical fibres end-to-end. The aim is to fuse the two fibres in a way that the splice does not diffuse or reflect light passing through the fibres, and that the splice and the region around it are almost as secure as the unbroken fibre.

The fusion splicer market dynamics and trends enhance signal quality by reducing loss and improving clarity, and they also increase network reliability through stable and efficient fibre connections. They enable faster installation, speed up fibre network deployment, and enhance data transmission with high-performance capabilities. Additionally, fusion splicers offer cost efficiency by reducing long-term operational and maintenance costs.

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Fusion Splicer Market Trends

Rising Efforts to Improve Digital Infrastructure

Utilising advanced technology enhances performance, while improved network efficiency and enhanced precision deliver superior results. Fusion splicers maintain rigorous quality assurance through consistently high standards, and their ability to minimise maintenance requirements leads to fewer repairs, which further boosts market growth. They also enhance the durability of fibre under stress, offer cost-effective solutions, and adapt to the changing needs of advanced telecommunications and data networks, emphasising their importance in high-performance fibre optic systems and increasing the fusion splicers demand.

As per the industry reports, the BharatNet initiative has successfully connected 207,000 Gram Panchayats across the country, improving digital infrastructure in these regions. This growth reflects a focus on enhancing connectivity in both urban and rural areas, promoting digital transformation and accessibility in India, which in turn increases revenue in the market. Advances in fusion splicing technology such as automated splicers and improved precision, are fuelling market growth by making splicing processes quicker, more accurate, and cost-efficient.

Growing Innovations in Splicers

Innovations like automated splicers and enhanced precision improve efficiency and accuracy, driving the growth of the fusion slicers market. These advancements not only streamline the splicing process but also significantly improve the overall efficiency and accuracy of fibre optic installations. Automated splicers can reduce the time and labour required for splicing operations, minimising human error and ensuring consistent results.

According to China Internet Network Information (CNNIC), the total length of fibre optic cable lines in China reached 61.96 million kilometres by June 2023, reflecting a net increase of 2.381 million kilometres since December 2022. Access fibre optic cable lines constitute 62.6%, local relay fibre optic lines account for 35.7%, and long-distance fibre optic lines make up 1.8%. This growth trend features a consistent annual increase from 53.52 million kilometres in June 2021 to 61.96 million kilometres in June 2023, indicating robust expansion in fibre optic infrastructure, which boosts the demand for automated splicers.

Industry News

July 2024

ZTE Corporation, a provider of integrated information and communication technology, announced that it is collaborating with Yangtze Optical Fibre and Cable Joint Stock Limited Company (YOFC) and Huaxin Design Institute for the release of the first demonstration project of a hollow-core fibre transmission system across the world in China.

April 2024

Amazon Web Services (AWS) announced that it aims to invest around USD 11 billion in Indiana to empower local communities and offer education and skills training, specifically for fibre optic fusion splicing.

Opportunities in Fusion Splicer Market

The growth of telecom infrastructure in developing regions creates new opportunities, further enhancing the potential for the fusion splicer demand growth. As these regions gain access to improved communication networks, including high-speed internet and mobile connectivity, several new opportunities arise. This enhanced connectivity not only facilitates better access to information and services but also fosters innovation.

Increased investment in 5G networks drives demand for efficient fibre optic splicing solutions. According to the Industry Report, the fibre optic cable market experienced significant growth, with usage increasing by 8.1% in the first half of 2022, driven by broadband expansion, data centre construction, and 5G investments. Projections indicate that the market is expected to experience a CAGR of over 10% from 2020 to 2027. This rapid increase in market revenue is driven by the growing consumer demand for high-speed internet, which in turn fuels the demand for efficient, low-loss fibre optic connections facilitated by advanced fusion splicing technology.

Fusion Splicer Market Restraints

Advanced fusion splicing equipment can be expensive, limiting accessibility for smaller players. These small-scale companies have limited budgets and resources, which makes it challenging for them to invest in the latest technology. Technical complexity and the need for skilled operators can also be a barrier for new entrants as proficiency in advanced splicing machines requires a deep understanding of both the equipment and the underlying principles, which may affect the fusion splicer market revenue.

Regular maintenance and calibration of splicing equipment can increase operational costs and then rapid technological advancements may further lead to current equipment becoming outdated. As new innovations emerge, there is a constant threat that existing machinery may not be useful, increasing the demand for regular upgradation, which may be difficult for companies with smaller budgets.

High competition among established players and new entrants could pressure margins and pricing. This competitive landscape can be especially challenging for small players who may not have the same scale or brand recognition as large-scale companies.

Market Dynamics

The growing need for high-speed internet and fibre optic networks boosts demand for fusion splicing equipment and eventually the demand of fusion splicer market. China dominates global consumption, accounting for 46% of fibre optic cable use, while the United States leads as the largest importer, responsible for 21% of global imports (Industry report). Further, robust market expansion in the Asia-Pacific and North America regions is expected due to substantial investments in ICT infrastructure. Rising input costs have propelled fibre optic cable prices upwards. In Europe, prices doubled between January 2021 and July 2022, while globally, prices surged by up to 70% between March 2021 and July 2022.

The strong presence of leading companies like Fujikura and Sumitomo Electric provides stability and reliability. These companies not only set high standards for product quality but also establish best practices that can aid enhance their market reach.

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Global Fusion Splicer Industry Segmentation

“Global Fusion Splicer Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Component

• Hardware
• Software
• Services

Market Breakup by Type

• Cladding Alignment
• Core Alignment

Market Breakup by Application

• Telecommunications
• Enterprise
• Cable TV
• Aerospace and Defence
• Others 

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Fusion Splicer Market Share

By Component Insights

The services component is expected to grow at a CAGR of 8.5% in the forecast period and account for the major fusion splicer market share. With the rising complexity of fusion splicers, service providers are increasingly offering specialised training programs to help users navigate advanced features such as automated alignment and splice loss estimation, among others. Major companies such as Fujikura and INNO Instrument are offering on-site training for advanced splicing features.  Fusion splicers are equipped with software that may require updates to improve performance or meet new standards in fibre optic networks. Additionally, the growing use of cloud-based analytics and remote diagnostics increases the demand for technical support services.

By Type Insights

As per the fusion splicer industry analysis, core alignment is expected to gain robust growth with a CAGR of 8.2% in the coming years. Core alignment fusion splicers rely on advanced imaging systems for detecting and aligning the fibre cores. This method is crucial for reducing splice loss which makes it ideal for applications such as in 5G networks where signal integrity is critical. The rapid expansion of data centres is fuelling the demand for high-precision splicing which can be fulfilled by the core alignment.

By Application Insights

The fusion splicer industry revenue is increased by their considerable advantages in telecommunications and enterprise sectors. In telecommunications, fusion splicers improve signal quality by delivering precise splicing and minimising signal loss, thus enhancing network reliability and stability. They also speed up installation and maintenance, facilitating quicker service deployment.

For enterprises, fusion splicers enable efficient data transmission with low-loss fibre connections, reduce operational costs through lower maintenance needs, and support network expansion and scalability to meet increasing data demands. Overall, fusion splicers are crucial for enhancing network performance and efficiently managing long-term costs, which further fuels the demand in the market.

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Fusion Splicer Market Regional Analysis

North America Fusion Splicer Market Outlook

The USA is expected to grow at a CAGR of 8.0% between 2024 to 2032. As per the Fiber Broadband Association’s (FBA) 2023 North America Fiber Provider Survey, around 9 million homes in the USA were connected to fibre in 2023 which was more than the 8.3 million mark in 2022, which can contribute to the growth of the fusion splicer industry. The Fiber Broadband Association have also predicted that around 12 million homes will contain fibre in the country in 2024 and this number is only expected to rise in the coming years. This is expected to boost the growth of the fusion splicer which is used for joining two optical fibres.

Europe Fusion Splicer Market Dynamics

The market growth in Europe is driven by countries such as Germany which is expected to exhibit around 7.3% CAGR in the coming years as more than half of the households in the country will have fibres by the end of 2024. Countries such as Belgium and Greece require significant investments in the installation of fibre as only 30% of the houses in these countries will be connected to fibre by the end of 2022, which is boosting the fusion splicer market expansion. Around 90% of houses in Portugal, Romania, and Lithuania were connected to fibre at the end of 2022.

Asia Pacific Fusion Splicer Market Drivers

The region is expected to exhibit a CAGR of 8.3% in the coming years with countries such as China and India expected to grow at CAGRs of 8.1% and 2.2% respectively. The Indian government further launched the National Broadband Mission in 2019 with an initial investment of around USD 100 billion. According to the Minister of State for Communications, India, over the past decade, India's optical fibre cable connectivity has seen remarkable growth, with total optical fibre laid expanding from 1.06 million km in 2014 to 3.89 million km by September 2023, which can contribute to the fusion splicer market value. This includes significant expansions in Maharashtra and Madhya Pradesh, where all 44 cities and 43 cities, respectively, are now connected with optical fibre cables.

Latin America Fusion Splicer Market Growth

Countries such as Brazil and Mexico exhibit CAGRs of 8.4% and 8.0% respectively. In Latin America, countries such as Brazil, Argentina, and Mexico are expanding their digital infrastructure to meet the increasing demand for high-speed internet, which can offer ample fusion splicer market opportunities. This expansion is largely driven by the need for enhanced connectivity in urban areas and efforts to improve rural broadband access. Moreover, the rapid deployment of 5G networks and increased investment in data centres has fuelled the demand for fusion splicers that maintain the fibre optic networks.

Middle East and Africa Fusion Splicer Market Trends

In the Middle East and African region, the demand for fusion splicers is driven by the growth of telecommunications and government initiatives aimed at improving internet access. For instance, countries in the Gulf Cooperation Council (GCC) such as Saudi Arabia and the United Arab Emirates, are investing heavily in 5G infrastructure and fibre optic networks to support smart city developments and digital transformation projects, that can boost the fusion splicer market development.

Additionally, South Africa and several other parts of Africa are placing a strong focus on improving connectivity in rural and underdeveloped regions.

Innovative Fusion Splicer Market Startups

Several startups are readily exploring emerging markets in Latin America and Africa, driven by digital transformation initiatives that are boosting the demand for fibre optic networks. Due to the rising demand for effective fibre splicing tools for high-speed internet and 5G network deployments, businesses are launching advanced fusion splicers that offer features like automated alignment, real-time heat monitoring, and faster splicing cycles, enhancing portability and reducing splicing time.

FiberFox Inc.

This startup in the fusion splicer market is known for providing affordable fusion splicing solutions specifically for smaller telecommunications providers and installers. FiberFox focuses on creating portable and user-friendly splicers that use advanced splicing algorithms and intuitive interfaces, making it easier for technicians to perform accurate splices in various field conditions. Their products are versatile, and suitable for a wide range of applications, from fibre-to-the-home (FTTH) projects to large-scale data centre operations.

Signal Fire Technology Co., Ltd.

Based in China, Signal Fire is known for its innovative and cost-effective fusion splicers designed for the telecommunications and data centre sectors. The company emphasises the incorporation of smart technology in its products, offering features like automated core alignment and real-time analytics. This approach ensures precise and efficient splicing, which is essential for maintaining robust fibre optic networks, especially as countries upgrade their 5G infrastructure.

Competitive Landscape

The companies in the market are focusing on high-end fibre optic solutions which contain advanced fusion splicers and related equipment. They are also focused on precision splicing tools to enhance market opportunities and expand their global reach. A growing number of businesses are shifting their attention to the Asia-Pacific region, driven by rapid urbanisation and advancements in telecommunications infrastructure. Notably, China and Japan are experiencing substantial increases in fibre optic investments, which are essential for the advancement of 5G and broadband initiatives.

Key Industry Players

Fujikura Ltd.

The company is readily increasing investment in research and development for advanced splicing technologies. It is also focusing on the expansion of global distribution networks to meet the growing demand of the market.

Furukawa Electric Co., Ltd.

The company is readily investing in the development of eco-friendly splicing solutions owing to the growing trend of sustainability. It is also focusing on the integration of AI in splicer operations as the trend of automation becomes prominent.

UCL Swift NA

The company is focusing on the introduction of compact and portable splicers as well as on offering affordable and user-friendly designs that can appeal to a wide range of consumers.

Other major market players in the fusion splicer market are Shanghai Shinho Fiber Communication Co., Ltd., INNO Instrument Inc., China Electronics Technology Group Corporation, Yamasaki Optical Technology, and Gao Tek Inc., among others.

Recent Developments

March 2024

Kerry College has collaborated with Amazon Web Services (AWS) and Sumitomo Electric Lightwave for the completion of a two-day fibre-splicing workshop, which was attended by both the public and current learners.

June 2021

Sumitomo Electric Industries, Ltd. announced that it released the first AI-programmed hand-held splicer, the T-502S series, in the world.

Fusion Splicer Market Report Snapshots

Fusion Splicer Market Size

Fusion Splicer Market Growth

Fusion Splicer Market Analysis

Fusion Splicer Market Share

Fusion Splicer Companies